GUIDES & REPORTS
Checklist: How prepared are you against fraud attacks?
Do you know enough about fraud? Are you sure about that?
There's no beating around the bush, fraud is on the rise and smart businesses need to be ready to fight it or feel the pain of fraudulent payments and invoices. We made a checklist for you to evaluate how well-prepared your business is against accounts payable fraud.
Read through this "fast facts" guide to learn:
- The areas where fraud is most commonly found in accounts payable, and the "check boxes" you should be looking into to see if your company is at risk
- Steps businesses should be taking today to make sure they aren't vulnerable frequent fraudster tactics in their invoice processes
- Why vendor information management needs to be a part of your overall accounts payable automation strategy
What happens when fraud goes unchecked?
Unmitigated fraud in accounts payable can have a significant impact on a company, leading to financial, operational, and legal consequences. These are some examples of the potential consequences when fraudsters go unchecked:
Reduced profits: The company pays for goods or services not received, directly losing funds, potentially significantly impacting their bottom line.
Disrupted operations: Fraudulent invoices can slow down the accounts payable process, delaying payments to legitimate vendors. This can strain relationships with suppliers and potentially disrupt the supply chain.
Damaged reputation: If fraud is discovered, it can damage the company's reputation and erode trust with stakeholders, including investors, customers, and partners.
Regulatory fines: Companies may face fines from regulatory bodies for failing to have adequate internal controls in place to prevent invoice fraud.
Lawsuits: The company may be sued by vendors who were not paid due to fraud. Additionally, if the fraud involved forgery or manipulation of financial records, there could be criminal charges.
Successful fraud in your invoice and payment process can be a serious issue for businesses. By implementing strong internal controls, investing in technology to go beyond manual intervention, and remaining vigilant about potential fraud attempts, companies can mitigate these risks.
How can Medius help you combat fraud?
The key to fraud prevention is all in the numbers – or really, in your data. Medius opens a wide window into your invoice and payment processes, giving you visibility into fraud patterns, areas of vulnerability, and tracking the impact your fraud prevention is making down the road. When you use data to drive decisions, you have the power of intelligence and automation on your side of a battle against fraudsters.