A Guide to Account Payable Fraud Prevention

Why Focus on Account Payable Fraud Prevention?

Accounts Payable fraud is on the rise. Weak approval controls, supplier impersonation, and invoice fraud can all lead to costly mistakes. Preventing fraud at the source with automation is the best line of defence — and this guide will show you how.

Common Types of AP Fraud

• Fake or inflated invoices from real or fake suppliers
• Invoice splitting to avoid authorisation limits
• Collusion between staff and suppliers
• Unmatched payments to non-approved suppliers
• Duplicate payments and manual coding errors

Key Benefits of Fraud Prevention Automation

• ✅ Reduces manual intervention and increases control
• ✅ Helps identify and stop duplicate or suspicious invoices
• ✅ Creates a full audit trail of every step
• ✅ Enforces supplier and budget compliance
• ✅ Deters fraud by removing loopholes and weak points

Highlights from the Guide

• Invoice Matching: Match every invoice to a valid PO and delivery record using purchase order software
• Supplier Controls: Vet and approve suppliers centrally. Use Zahara AP Automation features to manage changes and approvals.
• Duplicate Detection: Avoid overpayments with invoice processing software
• Dispute Resolution: Identify suspicious or disputed invoices early — leverage our built-in tools for best accounts payable software decisions.
• OCR Technology: Detect fraud-prone formats quickly using OCR invoice scanning
• Payment Controls: Prevent fraud during payment runs with scheduled supplier payments

Frequently Asked Questions

What is account payable fraud?

It’s any fraudulent activity in your AP process — from false invoices to payments made outside of proper checks and controls.

How does automation help prevent fraud?

By enforcing approval rules, validating suppliers, preventing duplicates, and keeping audit trails, AP automation closes many fraud gaps.

What are the risks of not addressing AP fraud?

Financial loss, reputational damage, and audit failures. Fraud in AP often goes unnoticed until it’s too late.

How does Zahara help with account payable fraud prevention?

Zahara automates checks, approvals, and controls across your AP process — making it harder for fraud to succeed.

Can Zahara integrate with our finance system?

Yes — we integrate with all major systems including Xero, QuickBooks, Sage, and more.