Combat Fraud with AP automation
Combatting Fraud
“UK retail industry ‘lost £11.3bn’ to payment fraud in 2023”
……….Wow What a Headline
A study by the Centre for Economic Business and Research and Dutch payments platform Adyen calculated the figure by using data from 26 countries across Europe, America, and APAC. It also found that on average, enterprises lost £1.4 million to fraudulent attacks.
With cyber crime and data leaks increasing by 37% in comparison with last year, businesses, not just in the Retail industry, need to ensure that their finance systems and business rules are robust enough to prevent and detect fraud at early stages.
So what can be done to combat fraud? Accounts Payable solutions can help with the following features:
Invoice Verification
AP automation solutions can verify invoices against purchase orders, contracts, and delivery receipts. This helps identify any discrepancies or irregularities that may indicate fraudulent activities, such as duplicate invoices or inflated charges.
Duplicate Payment Detection
AP automation can flag and prevent duplicate payments by cross-referencing invoice details and payment records. Duplicate payments are a common tactic used in fraud schemes, and automated systems can catch these instances quickly.
Supplier Validation
AP automation solutions can validate supplier information against databases holding master supplier data on finance system to ensure legitimacy. Cross checking VAT and Company numbers and address and bank details. This helps prevent fraudsters from posing as legitimate suppliers or creating fake vendor accounts to siphon funds.
Electronic Payments
Integrating a payment system to your AP automation solution and moving towards electronic payment methods like ACH (Automated Clearing House) or virtual cards reduces the risk of fraud compared to traditional paper checks. Electronic payments offer greater security features and audit trails, making it harder for fraudsters to intercept or alter transactions.
Advanced Analytics
AP automation platforms utilise advanced analytics and machine learning algorithms to identify patterns indicative of fraudulent behaviour. These systems can analyse large volumes of transactional data to detect anomalies, such as unusual spending patterns or non-compliant invoices.
Access Controls
Automation allows for the implementation of strict access controls and segregation of duties within the AP process. This reduces the risk of internal fraud by limiting who can initiate, approve, and execute payments.
Real-time Monitoring
Automated systems can provide real-time monitoring of AP transactions, allowing for immediate detection and response to suspicious activities. This proactive approach helps prevent fraud before it escalates.
Audit Trails
AP automation generates comprehensive audit trails that document every step of the payment process. These audit trails provide transparency and accountability, making it easier to trace transactions and investigate any suspected fraudulent activities.
If you’d like to know more about how Documation Automation solutions can help your organisation combat fraud, just get in touch
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