Invoice fraud is a growing threat to businesses of all sizes, but small and medium businesses (SMBs) are particularly vulnerable. With fewer resources dedicated to financial security, SMBs can easily fall victim to sophisticated scams that lead to significant financial losses. At InvoiceJedi, we believe in empowering businesses with the knowledge and tools to protect themselves. Here are the top 5 invoice fraud risks you need to be aware of, and how our platform helps you mitigate them.

1. Fake Supplier Invoices

The Risk: Fraudsters create convincing fake invoices from legitimate-looking suppliers, often for services or goods never rendered. These invoices might mimic your regular vendors, making them hard to spot without careful scrutiny.

How InvoiceJedi Helps: Our AI-powered data extraction and validation system cross-references vendor details against your approved supplier list and historical data. It flags inconsistencies, unusual amounts, or new vendor requests for manual review, significantly reducing the chance of paying a fraudulent invoice.

2. Duplicate Invoices

The Risk: This often happens due to human error or deliberate attempts by fraudsters to get paid twice for the same service. It can be hard to catch, especially with high volumes of invoices.

How InvoiceJedi Helps: InvoiceJedi automatically performs duplicate checks based on invoice numbers, dates, amounts, and vendor details. If a potential duplicate is detected, it’s flagged immediately, preventing double payments and saving your business money.

3. Phishing and Email Compromise

The Risk: Cybercriminals compromise a supplier’s or your own email system to send fraudulent payment requests or altered bank details for legitimate invoices. This is a highly effective scam because the emails appear to come from a trusted source.

How InvoiceJedi Helps: While no software can fully prevent email compromise, InvoiceJedi adds layers of protection. Our system can be configured to flag changes in vendor bank details, requiring additional verification. Furthermore, by automating invoice collection directly from supplier portals, you reduce reliance on email attachments, which are common vectors for phishing attacks.

4. Internal Fraud (Employee Embezzlement)

The Risk: Unfortunately, some fraud originates from within. Employees might create fake invoices, collude with external parties, or manipulate expense reports for personal gain.

How InvoiceJedi Helps: Our customizable approval workflows ensure that multiple eyes review and approve invoices before payment. Role-based access limits who can create, modify, or approve invoices, and comprehensive audit trails provide a clear, immutable record of every action, making it easier to detect and investigate suspicious activity.

5. Inflated Invoices

The Risk: A supplier (or an internal bad actor) might intentionally inflate the cost of goods or services on an invoice, hoping it goes unnoticed in a busy accounts payable department.

How InvoiceJedi Helps: Beyond basic data extraction, InvoiceJedi’s AI can learn from your historical spending patterns. It can flag unusually high amounts for specific vendors or service types, prompting a closer look and preventing overpayments.

Protecting your business from invoice fraud is paramount. InvoiceJedi provides the automation, intelligence, and security features that small and medium businesses need to streamline their accounts payable and safeguard their finances. Ready to take control?

Start Your Free Trial Today!