Fraud within accounts payable (AP) systems is one of the most common types of fraud, impacting a wide range of organizations. As many fraud risks are well known, it’s likely controls have been designed specifically within an AP application or the overall purchase-to-payments process to combat them.
However, just because an anti-fraud measure has been implemented doesn’t necessarily mean it’s effective. Fraudsters, whether employees or vendors, are often adept at finding gaps and ways around fraud controls.
So what can organizations do to find out if, despite implementing fraud controls, fraud is actually taking place? A good place to start is with data analytics. It can be a very effective way of uncovering multiple indicators of fraud buried within the data mass that supports an AP system.
Let’s look at 10 ways that data analytics can be used to detect fraud.