"But here's the thing: While AI has been making life easier for finance teams, it's also been making life easier for fraudsters. What was once the domain of duplicate taxi fares and "rounded-up" mileage claims has entered new, more dangerous ground. Fraudulent receipts can now be created or manipulated in mere seconds using generative AI tools and this, as one might expect, poses fresh challenges for finance leaders."
"The Association of Certified Fraud Examiners states that expense and billing fraud account for 35% of asset misappropriation cases, with median losses of around $50,000USD per incident - that's just shy of £37,000. More worryingly, data shows a 700% surge in fraudulent document activity in the wake of generative AI's rise in popularity. The playing field for fraudsters has seen a renewed coat of paint; with it, so too must the defences used to combat it."
AI is embedded across finance functions, from spam filters to receipt-scanning and invoice-matching systems, automating routine tasks and improving efficiency. Generative AI enables rapid creation and manipulation of receipts, escalating expense fraud from simple duplicate claims to sophisticated, high-volume fabrications. Expense and billing fraud represent 35% of asset misappropriation cases, with median losses near $50,000 USD per incident. Data indicates a roughly 700% increase in fraudulent document activity following the rise of generative AI. Finance teams face greater exposure as fraudsters exploit accessible tools, requiring upgraded controls, detection capabilities, and stronger expense-management processes to mitigate mounting risks.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]