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AP Automation helps prevent the growing finance fraud problem

Accounts Payable Automation Security Thought Leadership
Mikko Hytönen

Fraud is a growing concern for businesses around the world. According to the 2020 AFP Payments Fraud & Control Survey, 81 percent of businesses indicated that they experienced payments fraud in 2019. Accounts Payable (AP) is particularly vulnerable to fraud because it’s where invoices are approved for payment, but conversely, it’s also where fraud can be prevented. Fraud is a very costly problem. An average company can lose about 5% of revenue annually due to fraud, or about $3.7 trillion for businesses globally, according to The ACFE [Association of Certified Fraud Examiners] Global Fraud Study.

Fraud can crop up in different parts of the AP process – from entering a new vendor in the vendor master file to processing an invoice – and can be perpetrated from internal or external sources or a combination of the two. For example, an employee could create a fake vendor account or make changes to an existing one, routing payment to another bank account. Other fraudulent practices include creating a fake bill – either for a new or existing vendor – issuing duplicate or multiple invoices, or overcharging an invoice and pocketing the difference.

AP departments can spot fraud through some telltale signs, such as consecutive invoice numbers, invoices with P.O. boxes only, and those from unknown vendors. Other tipoffs include a check amount that is just under the threshold requiring a second approver, or a larger cost that is split up into smaller invoices to avoid hitting that threshold.

The good news is that AP departments can implement best practices to help prevent fraud. In the full article, published on MSDynamicsWorld.com, I'll go through four such strategies that leading AP leaders are implementing in their organizations.

Access the full article here (requires a free membership). 


About the Author
Mikko Hytönen
, Dooap's CEO, is a seasoned software business veteran with 20 years of experience in the field. He wants to understand how technology changes our lives and the world we live in. Passionate about sports.


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