{"id":20613,"date":"2023-02-23T17:37:35","date_gmt":"2023-02-23T17:37:35","guid":{"rendered":"https:\/\/envoice.eu\/?p=20613"},"modified":"2024-01-31T11:50:42","modified_gmt":"2024-01-31T11:50:42","slug":"stay-ahead-of-the-game-proven-strategies-to-prevent-accounts-payable-fraud","status":"publish","type":"post","link":"https:\/\/envoice.eu\/en\/blog\/stay-ahead-of-the-game-proven-strategies-to-prevent-accounts-payable-fraud\/","title":{"rendered":"Stay Ahead of the Game: Proven Strategies to Prevent Accounts Payable Fraud"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">AP Fraud can be particularly destructive as it leads to several repercussions, including financial losses, damage to business reputation, fines, and litigation. Sadly most companies wait for fraud to happen before taking action.\u00a0<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">It&#8217;s time to change that.\u00a0<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">If you are looking for actionable and effective ways to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Strengthen anti-fraud controls to mitigate risks.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reduce losses from fraud.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Modernize safeguards to minimize digital and cyber threats.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Here are <\/span><b>seven actionable tips<\/b><span style=\"font-weight: 400;\"> to help your company prevent fraud in the accounts payable function.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But first, let&#8217;s talk about AP fraud.<\/span><\/p>\n<h2 style=\"text-align: center;\"><b>How Does AP Fraud Work?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Accounts payable fraud involves making illegal or false payments and begins with an employee who can execute outgoing payments.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It can be committed by scammers, hackers, suppliers, employees, executives, and even owners.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">AP fraud could happen when the person in charge intentionally transfers funds to a bank account disguised to be for a beneficiary or vendor. External perpetrators can also trick employees to send money to a fictitious vendor.\u00a0<\/span><\/p>\n<h2 style=\"text-align: center;\"><b>Most Common Types of Accounts Payable Fraud<\/b><\/h2>\n<figure id=\"attachment_20618\" aria-describedby=\"caption-attachment-20618\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-20618 size-large\" src=\"https:\/\/envoice.eu\/wp-content\/uploads\/2023\/02\/types-of-accounts-payable-fraud-1024x683.jpeg\" alt=\"types of accounts payable fraud\" width=\"1024\" height=\"683\" srcset=\"https:\/\/envoice.eu\/wp-content\/uploads\/2023\/02\/types-of-accounts-payable-fraud-1024x683.jpeg 1024w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/02\/types-of-accounts-payable-fraud-300x200.jpeg 300w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/02\/types-of-accounts-payable-fraud-768x512.jpeg 768w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/02\/types-of-accounts-payable-fraud-1536x1024.jpeg 1536w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/02\/types-of-accounts-payable-fraud.jpeg 1920w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-20618\" class=\"wp-caption-text\">Source: Getty by Canva<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Fraud involving the Accounts Payable Department happens in many ways. However, the most common ones involve the following:<\/span><\/p>\n<h3><b>Billing Schemes<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">External and internal perpetrators could be involved in a billing scheme. Common types of fraud under this category include:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> Sending false invoices<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Using an inactive or invalid supplier\u2019s details to submit a false billing<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Shell company schemes created by dishonest employees to issue fraudulent invoices for goods that did not arrive<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Creating a shell company to pose as a legitimate vendor for pass-through schemes. This vendor procures supplies requisitioned by the company from another vendor and sells them at a higher price to the company.<\/span><\/li>\n<\/ul>\n<h3><b>Check Fraud<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Employees are more likely to commit check fraud since they have opportunities to alter, intercept, and forge checks. However, external perpetrators can also be involved in check fraud.<\/span><\/p>\n<h3><b>ACH Fraud<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Another type of payment fraud involves Automated Clearing House payments. External perpetrators often target ACH during cyber attacks by using a compromised account to authorize fraudulent payments. However, employees may take advantage of their authority or ability to breach controls to commit fraud using ACH payments.<\/span><\/p>\n<h3><b>Expense Reimbursement Fraud<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Expense fraud is one of the most common types of employee fraud. Dishonest employees may create invoices for fictitious expenses, charge personal expenses to corporate credit cards, overstate mileage, and submit duplicate invoices.\u00a0<\/span><\/p>\n<h3><b>Kickback Schemes<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Often, kickback fraud occurs between an external and internal perpetrator. An employee may collude with a supplier who submits inflated invoices, secure orders without participating in the bidding, or provide substandard products at full price in exchange for benefits.<\/span><\/p>\n<h2 style=\"text-align: center;\"><b>7 Effective Ways to Prevent Accounts Payable Fraud\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The most common fraud controls include external audits, internal audits, having a code of conduct, management reviews, and management certification of financial statements. These internal controls reduce fraud by at least 33%, but they&#8217;re not enough.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Consider adding the following controls to decrease duration and losses due to fraud.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">#1. Require Multi-Factor Authentication for Employee Accounts<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Fraudsters are more likely to succeed when they mimic or take over a trusted email account. For instance, your employees may not be suspicious when a supervisor\u2019s official email account sends the invoice for payment.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Hence, it\u2019s critical to impede account takeovers. A simple but effective way to prevent unauthorized access is to enable multi-factor authentication.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Entering only your username and password to log in requires single-factor authentication. Passwords alone are vulnerable &#8211; data leaks and bots make it easy to guess your password. With MFA, you can add an extra layer of security to corporate accounts.\u00a0<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">How MFA Works<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Multi-factor authentication requires you to enter more than one credential to access an account. You may have to prove your digital identity through any of the following:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> PIN<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Code<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> On-time SMS Code<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Using a Trusted Device<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Security Key<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Biometric verification<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It impedes attempts to log in to official accounts and allows you to protect your corporate data and vendor and employee information.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Enabling MFA is necessary for valuable targets like high-ranking officials, executives, business owners, and company heads.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Unfortunately, many companies and executives do not activate MFA. In a 2022 survey, 47% of small and medium-sized business owners did not see the value or understand MFA.[2] The same problem is prevalent among C-suite executives.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another study finds that only 8% of executives utilize MFA for most of their devices and applications. This is a cause of concern as 87% have passwords leaked on the dark web.[3]<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">#2. Validate Vendor Information<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">While all businesses have to be vigilant, data from Barclays show that 55% of scam-related losses for small businesses are due to invoice fraud. In this type of fraud, scammers impersonate vendors to update payment information. On average, SMEs lose \u00a32,100 annually due to invoice fraud. [4]<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Validating vendor information is an effective way to avoid invoice scams. However, two-thirds of organizations are not validating payment to confirm whether vendors receive the proceeds.\u00a0<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">Improve Fraud Detection\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Your AP department can improve the detection of a fake vendor account with these simple steps:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Check the vendor master file to compare items such as:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Tax ID number<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Bank account details<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Vendor addresses<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Calling a vendor when you receive a request to change payment information.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Confirm payment transactions for large orders.<\/span><\/li>\n<\/ul>\n<figure id=\"attachment_20620\" aria-describedby=\"caption-attachment-20620\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-20620 size-large\" src=\"https:\/\/envoice.eu\/wp-content\/uploads\/2023\/02\/avoiding-invoice-scams-1024x683.jpeg\" alt=\"woman in front of computer preparing invoice\" width=\"1024\" height=\"683\" srcset=\"https:\/\/envoice.eu\/wp-content\/uploads\/2023\/02\/avoiding-invoice-scams-1024x683.jpeg 1024w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/02\/avoiding-invoice-scams-300x200.jpeg 300w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/02\/avoiding-invoice-scams-768x512.jpeg 768w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/02\/avoiding-invoice-scams-1536x1024.jpeg 1536w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/02\/avoiding-invoice-scams.jpeg 1920w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-20620\" class=\"wp-caption-text\">Source: Getty by Canva<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Additional tips to avoid invoice scams<\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\"> Do not use the contact number provided in the \u201csuspicious\u201d email to confirm changes to payment information.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Do open attachments and links without verifying the sender and reading the body of the email, even if it seems to be from a trusted source.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Conduct a background check when doing business with a new supplier.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Implement a policy to validate all large transactions with vendors.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Conduct unannounced vendor audits to catch fictitious vendors and verify whether payments are for legitimate transactions.<\/span><\/li>\n<\/ol>\n<h3><span style=\"font-weight: 400;\">#3. Evaluate AP Controls Regularly and Require Full Compliance with Procedures<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Fraud is more likely to happen when there are insufficient controls in place. Lack of internal control is the biggest contributor to fraud.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Make it part of your operating procedures to evaluate fraud controls annually. If there were significant changes to business operations, re-assess controls. Replace or add new safeguards if needed.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">Key Internal Controls in Accounts Payable<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Some of the most critical controls in the accounts payable function include:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> Separation of duties for approving invoices, receiving orders, approving payment, and reviewing and reconciling records<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Match invoices with the purchase order and delivery receipt<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Check if invoices get paid on time<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Review and update vendor files regularly<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Keep accurate inventory records<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">According to ACFE, 20% consider management override as one of the top contributors to committing fraud.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Suppose a manager at Company A receives a legitimate-looking invoice attached to an email requesting immediate payment.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the manager believes the email and authorizes immediate payment, bypassing verification procedures, fraud is more likely to succeed. However, if the invoice follows the usual approval process and goes through all the necessary verification and approval, there\u2019s a higher probability of evading the attack.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">#4. Cultivate a Security Awareness Culture\u00a0<\/span><\/h3>\n<figure id=\"attachment_20622\" aria-describedby=\"caption-attachment-20622\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-20622 size-large\" src=\"https:\/\/envoice.eu\/wp-content\/uploads\/2023\/02\/company-security-awareness-1024x683.jpeg\" alt=\"accounts payable team meeting\" width=\"1024\" height=\"683\" srcset=\"https:\/\/envoice.eu\/wp-content\/uploads\/2023\/02\/company-security-awareness-1024x683.jpeg 1024w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/02\/company-security-awareness-300x200.jpeg 300w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/02\/company-security-awareness-768x512.jpeg 768w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/02\/company-security-awareness-1536x1024.jpeg 1536w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/02\/company-security-awareness.jpeg 1920w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-20622\" class=\"wp-caption-text\">Source: Getty by Canva<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">As companies embrace hybrid and remote work, security awareness is a must. Scammers exploit weaknesses in the accounts payable process \u2013 the individual users. Even if you have a state-of-the-art infrastructure, fraudsters can still gain access to your system by taking over an employee\u2019s account. This is why organizations have to train all employees to detect fraudulent transactions and act accordingly.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Imagine this scenario.<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">Your employee receives a suspicious email that happens to have a malicious link. The employee thinks it is a legitimate transaction and sends it to multiple people to confirm. Recipients may click on the link since it came from a trusted source. As a result, the attack affects their accounts too.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the employee had the necessary training to combat a phishing scheme, you could avoid having multiple accounts compromised.\u00a0<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">Educate and Train Employees to Combat Fraud<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Studies during COVID revealed that 80% of organizations reduced susceptibility to phishing attacks through security training.[5]<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite the increase in phishing attacks, companies do not provide adequate training to employees. About 36% limit training to certain departments and roles. Only 64% conduct formal training sessions.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Preventing fraud in AP should involve security awareness and fraud training. Schedule ongoing training and send &#8220;suspicious&#8221; emails as part of a test to evaluate your team&#8217;s ability to recognize scams and phishing attempts.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">#5. Set Up a Corporate Ethics and Compliance Hotline<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Scammers and external fraudsters are not always to blame for accounts payable fraud. Internal perpetrators \u2013 employees, managers, executives, and even owners \u2013 could be involved in fraud. And according to the 2022 report by the Association of Certified Fraud Examiners, having a hotline to report fraud is the most effective detection method.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a042% of organizations uncovered fraud due to tips, and more than half of the reports are from employees. If fraud is a significant concern for your growing organization, set up a dedicated hotline to report fraud or other unethical behavior.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Data suggests that most whistleblowers reported tips via email (40%) and web-based forms (33%). Reported median losses from fraud are $100,000 for organizations with a hotline, while those without are 100% higher at $200,000. Businesses also uncovered fraud faster at 12 months compared to 18 months for those without hotlines.[6]<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">How to Implement an Effective Fraud Hotline<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Maximize the benefits of creating a fraud hotline with these tips:<\/span><\/p>\n<ol>\n<li><span style=\"font-weight: 400;\"> Provide several options to make a report, such as an email, web form, text message, or telephone.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Guarantee anonymity of reporters and maintain the confidentiality of information.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Inform employees that the hotline exists.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Create protocols for handling reports sent through the hotline.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Consider hiring an external provider to manage the hotline.\u00a0<\/span><\/li>\n<\/ol>\n<h3><span style=\"font-weight: 400;\">#6. Rotate Employees and Implement Mandatory vacations<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Job rotation and mandatory vacation only make up 25% of fraud controls in many organizations. However, ACFE finds that median loss from occupational fraud decreases from $140,000 to $64,000, a 54% drop when companies implement job rotation and mandatory leaves.[6]<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Fraud duration also decreased from 16 months to 8 months.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Allowing employees to occupy the same position for a long time breeds familiarity with vendors. This makes it possible for employees to:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> Exploit position to commit fraud<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Take advantage of weaknesses in the AP process to commit fraud<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> Cover their tracks to avoid fraudulent activities from being detected<\/span><\/li>\n<\/ul>\n<figure id=\"attachment_20624\" aria-describedby=\"caption-attachment-20624\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-20624 size-large\" src=\"https:\/\/envoice.eu\/wp-content\/uploads\/2023\/02\/fingers-crossed-at-the-back-1024x683.jpeg\" alt=\"fingers crossed at the back\" width=\"1024\" height=\"683\" srcset=\"https:\/\/envoice.eu\/wp-content\/uploads\/2023\/02\/fingers-crossed-at-the-back-1024x683.jpeg 1024w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/02\/fingers-crossed-at-the-back-300x200.jpeg 300w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/02\/fingers-crossed-at-the-back-768x512.jpeg 768w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/02\/fingers-crossed-at-the-back-1536x1024.jpeg 1536w, https:\/\/envoice.eu\/wp-content\/uploads\/2023\/02\/fingers-crossed-at-the-back.jpeg 1920w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-20624\" class=\"wp-caption-text\">Source: Getty by Canva<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">In about 20% of fraud cases, perpetrators had an unusually close association with a supplier, making it necessary to require job rotation for employees in high risks positions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another method to mitigate fraud is to require employees to go on mandatory leave. Unwillingness to share existing duties with other employees is a behavioural red flag.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Employees hiding something often hesitate to leave work even for a day because they&#8217;re worried about getting caught. When employees go on vacation, another employee takes over. Handing over a task to someone new makes it possible to spot anomalies in the Accounts Payable Department since a second employee reviews the transactions.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">#7. Move Invoice Approval Workflows Outside of Email\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Email may be a convenient communication tool, but it is one of the riskiest methods to approve invoice payments. Replace email with an invoice approval solution.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Changing where invoice approvals happen makes your accounts payable function more efficient. It also brings the following benefits:\u00a0<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">AP approval workflows improve accountability. Most companies have shared email accounts making it harder to track who saw the invoice or modified it.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A separate invoice approval solution makes it harder for fraudsters to infiltrate your invoice approval process even if an email account gets compromised.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Your company will have a <\/span><a href=\"https:\/\/envoice.eu\/en\/products\/use-cases\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">proper audit trail<\/span><\/a><span style=\"font-weight: 400;\">. Invoice approval solutions like Envoice leaves a record of who accessed or modified the account.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Access to <\/span><a href=\"https:\/\/envoice.eu\/en\/accountants\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">automated invoice approval workflows<\/span><\/a><span style=\"font-weight: 400;\"> with built-in controls that allows you to customize rules and enforce compliance. For instance, it&#8217;s easier to catch duplicate payments, unusual invoice volume, or multiple payments to the same vendor.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Invoices are less likely to get stuck and cause payment delays. Approvers receive a notification when they need to approve an invoice. You can also designate substitute approvers who can take over if someone is out of the office.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Having all invoice-related communication means fewer emails, phone calls, and trips to the manager&#8217;s office to confirm a transaction. This improves collaboration and ensures everyone is on the same page, making it less likely for fraudsters to succeed in deceiving AP staff to approve a fraudulent billing.<\/span><\/li>\n<\/ol>\n<h2 style=\"text-align: center;\"><span style=\"font-weight: 400;\">Improve Fraud Detection Through Automation<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In most companies, AP teams struggle to keep up with increasing invoice volume. About half of AP staff started working longer hours in mid-2022 to keep up with the increasing workload. You can&#8217;t expect overworked employees to spot anomalies like duplicated suppliers or fictitious vendors.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As AP schemes become more elaborate, organizations must invest in automation. Leveraging AI enables real-time monitoring to enhance detection and eliminates manual tasks to free up time for your AP team.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Automation allows your AP team can focus on resolving issues and investigating suspicious trends and patterns. Combining intelligent technology with fraud training and better processes improves your AP team&#8217;s ability to detect and prevent fraud.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Start taking a proactive approach to AP fraud. Move email approval workflows to the Envoice platform.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/app.envoice.eu\/desktop\/user\/register\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Sign up for a free trial today.\u00a0<\/span><\/a><\/p>\n<p>&nbsp;<\/p>\n<p><em><span style=\"font-weight: 400;\">Article Resources:<\/span><\/em><\/p>\n<p><span style=\"font-weight: 400;\">[1] <\/span><a href=\"https:\/\/acarp-edu.org\/how-to-be-fraud-free-in-2023\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">https:\/\/acarp-edu.org<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">[2] <\/span><a href=\"https:\/\/www.scmagazine.com\/news\/identity-and-access\/a-clear-majority-of-small-business-owners-have-not-implemented-mfa\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">https:\/\/www.scmagazine.com<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">[3] <\/span><a href=\"https:\/\/www.scmagazine.com\/news\/security-awareness\/only-8-of-c-suite-executives-use-mfa-across-a-majority-of-apps-devices\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">https:\/\/www.scmagazine.com<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">[4] <\/span><a href=\"https:\/\/home.barclays\/news\/press-releases\/2022\/04\/businesses-warned-to-be-vigilant\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">https:\/\/home.barclays<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">[5] <\/span><a href=\"https:\/\/www.infosecurity-magazine.com\/blogs\/employee-cyber-awareness-crisis\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">https:\/\/www.infosecurity-magazine.com<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">[6] <\/span><a href=\"https:\/\/acfepublic.s3.us-west-2.amazonaws.com\/2022+Report+to+the+Nations.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">https:\/\/acfepublic.s3.us-west-2.amazonaws.com<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>AP Fraud can be particularly destructive as it leads to several repercussions, including financial losses, damage to business reputation, fines, and litigation. Sadly most companies wait for fraud to happen before taking action.\u00a0 It&#8217;s time to change that.\u00a0 If you are looking for actionable and effective ways to: Strengthen anti-fraud controls to mitigate risks. Reduce [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":20614,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[66],"tags":[],"class_list":["post-20613","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounts-payable"],"acf":[],"_links":{"self":[{"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/posts\/20613","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/comments?post=20613"}],"version-history":[{"count":3,"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/posts\/20613\/revisions"}],"predecessor-version":[{"id":24582,"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/posts\/20613\/revisions\/24582"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/media\/20614"}],"wp:attachment":[{"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/media?parent=20613"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/categories?post=20613"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/envoice.eu\/en\/wp-json\/wp\/v2\/tags?post=20613"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}