Quick Answer:

How Do You Reduce Fraud in the Accounts Payable Process?

Author: Jonathan Care

Every data point on fraud is unsettling.

75% of companies reported BEC fraud1

54% of companies targeted by BEC experienced a financial loss as a result1

5% of revenue lost to fraud each year (Certified Fraud Examiners estimate)2

According to Gartner, “The accounts payable process is vulnerable to fraud. Application leaders responsible for the accounts payable process must leverage vendor platforms for management of supplier data, implement real-time auditing of invoices and monitor for insider threats to reduce the risk of financial losses.”3

We feel, following Gartner guidance by Gartner, can help companies strengthen current controls and auditing processes to prevent future fraud attempts from succeeding.

In this article, Gartner outlines their three pillars to reduce fraud in the AP process with sample solutions to create this foundation of protection.

  • Ensure the integrity of supplier data — Take advantage of vendor-provided supplier master data platforms that support validating and securely maintaining such information.
  • Audit the invoice process in real-time — Actively monitor invoices by leveraging accounts payable invoice automation (APIA) or real-time AP auditing solutions that offer AI/ML-based fraud detection, duplicate invoice detection and anomalous invoice amount detection.
  • Monitor for insider fraud — Ensure that anomalous events (i.e., change of payee, new supplier entries, unusual invoice amounts) are flagged appropriately. In regions where banking supports this, ensure that payment destinations are risk assessed and verified.3

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We are thrilled to be listed as a Representative Vendor and agree with the three major components of risk and fraud prevention best practices.

We feel, we are the only solution provider offering all three pillars. Our fraud controls have been designed in collaboration with Certified Fraud Examiners and are being used by the largest, most successful shared services and P2P organizations around the world to uncover and prevent insider fraud, corruption, and intercepted payments.

 


1 The 2020 AFP Fraud Payment Controls Report
2 ACFE Report to the Nations: 2020 Global Study on Occupational Fraud and Abuse.
3 Gartner Quick Answer: Quick Answer: How Do You Reduce Fraud in the Accounts Payable Process? Jonathan Care, 6 December 2021.

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This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from apexanalytix.