{"id":76118,"date":"2026-04-30T15:53:39","date_gmt":"2026-04-30T13:53:39","guid":{"rendered":"https:\/\/www.sage.com\/en-za\/blog\/?p=76118"},"modified":"2026-04-30T15:53:40","modified_gmt":"2026-04-30T13:53:40","slug":"accounts-payable-fraud-guide","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-za\/blog\/accounts-payable-fraud-guide\/","title":{"rendered":"Accounts payable fraud prevention: What is it and how to prevent it"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--standard entry-header--has-illustration entry-header--has-illustration--standard\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-za\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tAccounts payable fraud prevention: What is it and how to prevent it\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\tLearn accounts payable fraud prevention: how to spot schemes, minimise risk, and protect your business with our guide for South African businesses today. \t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-04-30T15:53:39+02:00\">April 30, 2026<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Accounts payable fraud prevention: What is it and how to prevent it\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-za\/blog\/accounts-payable-fraud-guide\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-za\/blog\/author\/yassirmalik\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2024\/03\/Yassir-Malik.jpg\" class=\"entry-author__image\" alt=\"yassir-malik-profile-picture\" \/>\t\t\t\t<span class=\"entry-author__name\">Yassir Malik<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p>Learn all about accounts payable fraud, how to spot common schemes, and how to minimise the risk and protect your business with our in-depth guide.<\/p>\n\n\n\n<p>Accounts payable (AP) fraud is an issue that any business should take seriously.<\/p>\n\n\n\n<p>It can have a big impact on your company&#8217;s financial health, operational efficiency, and overall reputation.<\/p>\n\n\n\n<p>In fact, AP fraud can cost businesses millions of rand.<\/p>\n\n\n\n<p>Not to mention the damage it can do to the trust and relationships you&#8217;ve built with suppliers and customers.<\/p>\n\n\n\n<p>Unfortunately, fraud targeting business finances is becoming an increasingly common threat.<\/p>\n\n\n\n<p>According to <a href=\"https:\/\/www.pwc.com\/gx\/en\/services\/forensics\/economic-crime-survey.html\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>PwC\u2019s Global Economic Crime and Fraud Survey<\/strong><\/a>, procurement fraud remains a widespread concern for organisations and is among the most disruptive economic crimes experienced by businesses in recent years.<\/p>\n\n\n\n<p>These types of fraud often occur within purchasing and payment processes \u2014 including the handling of supplier invoices and payments \u2014 making the accounts payable function a key risk area for many organisations.<\/p>\n\n\n\n<p>This article will explain what accounts payable fraud is, common fraud schemes, how to detect it, and how to prevent it.<\/p>\n\n\n\n<p>Additionally, you&#8217;ll be able to read about some practical steps you can take to protect your company from the risk of AP fraud.<\/p>\n\n\n\n<p><a><\/a><strong>Here&#8217;s what we cover:<\/strong><\/p>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-key-takeaways\" data-level=\"2\">Key takeaways<\/a><\/li><li><a href=\"#h-what-is-accounts-payable-fraud\" data-level=\"2\">What is accounts payable fraud?<\/a><\/li><li><a href=\"#h-common-accounts-payable-fraud-schemes\" data-level=\"2\">Common accounts payable fraud schemes<\/a><\/li><li><a href=\"#h-how-to-detect-accounts-payable-fraud\" data-level=\"2\">How to detect accounts payable fraud<\/a><\/li><li><a href=\"#h-how-to-prevent-accounts-payable-fraud\" data-level=\"2\">How to prevent accounts payable fraud<\/a><\/li><li><a href=\"#h-accounts-payable-fraud-case-examples\" data-level=\"2\">Accounts payable fraud case examples<\/a><\/li><li><a href=\"#h-protect-your-business-from-accounts-payable-fraud\" data-level=\"2\">Protect your business from accounts payable fraud<\/a><\/li><li><a href=\"#h-faqs\" data-level=\"2\">FAQs<\/a><\/li><\/ul><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<section class=\"wp-block-sage-container is-constrained\"><div class=\"sage-container__inner\">\n<h2 class=\"wp-block-heading\" id=\"h-key-takeaways\">Key takeaways<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Accounts payable fraud is a common and costly risk,<\/strong> especially for businesses with weak controls or manual AP processes. It can affect finances, operations, and trust with suppliers.<\/li>\n\n\n\n<li><strong>Most AP fraud happens through invoices, payments, or insiders,<\/strong> including duplicate or fake invoices, unauthorised payments, altered bank details, and employee collusion.<\/li>\n\n\n\n<li><strong>Early detection depends on knowing the warning signs<\/strong>, such as unusual payment patterns, incomplete invoices, duplicate suppliers, and inconsistent supplier information.<\/li>\n\n\n\n<li><strong>The most effective prevention combines strong controls, segregation of duties, staff awareness, and automation,<\/strong> which together reduce opportunities for fraud and improve visibility.<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-accounts-payable-fraud\"><a><\/a>What is accounts payable fraud?<\/h2>\n\n\n\n<p>Accounts payable fraud refers to any dishonest activity or scheme that involves manipulating your company&#8217;s accounts payable system.<\/p>\n\n\n\n<p>These schemes generally revolve around two main components:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The nature of the supplier involved (which could be a fake supplier or a legitimate one).<\/li>\n\n\n\n<li>The fraudulent actions carried out.<\/li>\n<\/ul>\n\n\n\n<p>The fraudulent activities themselves can take many forms, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Submitting false invoices.<\/li>\n\n\n\n<li>Altering payments.<\/li>\n\n\n\n<li>Masking unauthorised purchases.<\/li>\n\n\n\n<li>Colluding with employees to steal money from a company.<\/li>\n<\/ul>\n\n\n\n<p>Each of these actions allows the fraudster to manipulate the AP process and steal funds from the company.<\/p>\n\n\n\n<p>In many cases, fraudsters target weaknesses in internal controls, processes, or manual checks, making it easier for them to divert funds without detection.<\/p>\n\n\n\n<p>Whether it&#8217;s exploitation of simple human error or deliberate manipulation, AP fraud is often difficult to identify until it&#8217;s too late.<\/p>\n\n\n\n<p>As such, it poses a particular risk to small and medium-sized businesses that may not have robust enough fraud prevention systems in place.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-why-does-accounts-payable-fraud-happen\"><a><\/a>Why does accounts payable fraud happen?<\/h3>\n\n\n\n<p>AP fraud can happen for a variety of reasons, but it usually boils down to a lack of internal controls or opportunities for manipulation within the AP process.<\/p>\n\n\n\n<p>Sometimes, fraud is carried out by outsiders, such as suppliers who intentionally submit fake or inflated invoices.<\/p>\n\n\n\n<p>Other times, it&#8217;s an inside job, with employees using their position to approve unauthorised payments or create fictitious suppliers.<\/p>\n\n\n\n<p>The key to preventing fraud is catching it early, which requires proactive systems, checks, and regular audits.<\/p>\n\n\n\n<p>The financial and operational consequences of AP fraud can be devastating, so it&#8217;s important that you put systems in place to enable early detection and prevention.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Budget Speech: 2026\/2027<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>Explore the key tax, payroll and employment changes from the 2026\/27 Budget<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-a2a54612-83e6-4a6c-b6a6-d71baac631c1\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1064\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2019\/07\/resize-1675x1275-41-1064x810.jpg\" class=\"single-cta__image\" alt=\"Smiling businessman using tablet\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2019\/07\/resize-1675x1275-41-1064x810.jpg 1064w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-common-accounts-payable-fraud-schemes\"><a><\/a>Common accounts payable fraud schemes<\/h2>\n\n\n\n<p>Understanding how different types of AP fraud work will help you recognise and address potential risks to your business.<\/p>\n\n\n\n<p>Here are some of the most common accounts payable fraud schemes:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-invoice-fraud-duplicate-invoices-overcharging-and-fictitious-suppliers\"><a><\/a>Invoice fraud: Duplicate invoices, overcharging, and fictitious suppliers<\/h3>\n\n\n\n<p>One of the most common types of AP fraud is invoice fraud.<\/p>\n\n\n\n<p>This happens when a supplier or employee submits fake invoices or duplicates legitimate invoices to receive payments for goods or services that were never delivered.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Duplicate invoices<\/h4>\n\n\n\n<p>The same invoice is submitted more than once for payment.<\/p>\n\n\n\n<p>Sometimes it might be under a different name or with a slight modification.<\/p>\n\n\n\n<p>The invoice may look legitimate at first glance, but the extra payment goes into the fraudster&#8217;s pocket.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Overcharging<\/h4>\n\n\n\n<p>Fraudsters may alter the amounts on legitimate invoices, overcharging for goods or services.<\/p>\n\n\n\n<p>In some cases, this can be difficult to spot unless you thoroughly review the details of each invoice.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Fictitious suppliers<\/h4>\n\n\n\n<p>A more sophisticated form of invoice fraud involves creating fictitious suppliers.<\/p>\n\n\n\n<p>In this scenario, an employee or supplier may set up a fake company and submit invoices for products or services that don&#8217;t exist.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-payment-fraud-unauthorised-payments-altered-cheques-and-account-manipulation\"><a><\/a>Payment fraud: Unauthorised payments, altered cheques, and account manipulation<\/h3>\n\n\n\n<p>Payment fraud can take several forms, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Unauthorised payments: <\/strong>This happens when someone inside your organisation authorises payments for goods or services that were never delivered. Or they might authorise fake payments to their own personal account.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Altered or fraudulent payments: <\/strong>In some cases, payment instructions are tampered with after being issued. This could mean changing beneficiary bank details, falsifying payment authorisation, or increasing the payment amount to divert funds to a fraudster\u2019s account.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-employee-fraud-insider-threats-and-collusion\"><a><\/a>Employee fraud: Insider threats and collusion<\/h3>\n\n\n\n<p>Employee fraud is another major risk to be aware of.<\/p>\n\n\n\n<p>Any of your team members who have access to sensitive financial data could, in theory, take advantage of this to commit fraud.<\/p>\n\n\n\n<p>It can be challenging to detect without careful oversight, so it often goes unnoticed for long periods.<\/p>\n\n\n\n<p>Collusion is an example of employee fraud. It&#8217;s when two or more of your team members work together to defraud your company.<\/p>\n\n\n\n<p>For instance, one employee might create a fake supplier in the system whilst another approves the payment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-other-accounts-payable-fraud-schemes\"><a><\/a>Other accounts payable fraud schemes<\/h3>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-pass-through-schemes\"><a><\/a>Pass-through schemes<\/h4>\n\n\n\n<p>An employee responsible for approving invoices and authorising payments creates a shell company to order items that your business legitimately gets from other suppliers.<\/p>\n\n\n\n<p>The shell company marks up these items and sells them to your business, allowing the employee to pocket the profit.<\/p>\n\n\n\n<p>These schemes often involve systematic markups and can be quite complex, with numerous variations in how they are carried out.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-eft-fraud\"><a><\/a>EFT fraud<\/h4>\n\n\n\n<p>This is when someone unlawfully gains access to your company&#8217;s bank account to make unauthorised electronic payments or transfers through the electronic funds transfer (EFT) system.<\/p>\n\n\n\n<p>The EFT system is commonly used for direct deposits, bill payments, and money transfers.<\/p>\n\n\n\n<p>The fraudster might steal account details or manipulate transactions to divert funds.<\/p>\n\n\n\n<p>This can be done through phishing, hacking, or using stolen information to create unauthorised payments.<\/p>\n\n\n\n<p>Once the funds are transferred, they can be hard to trace and recover, making it a significant financial risk for businesses.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-kickback-schemes\"><a><\/a>Kickback schemes<\/h4>\n\n\n\n<p>A type of billing or invoice fraud where a company employee works with suppliers to overcharge your business.<\/p>\n\n\n\n<p>For instance, they may inflate an invoice with the understanding that the employee gets a kickback (a bribe or commission) from the supplier in exchange for approving and processing the invoice.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-expenses-and-reimbursement-fraud\"><a><\/a>Expenses and reimbursement fraud<\/h4>\n\n\n\n<p>When employees submit false or inflated expenses for reimbursement.<\/p>\n\n\n\n<p>They might claim personal expenses as business-related or exaggerate the cost of legitimate business expenses.<\/p>\n\n\n\n<p>For example, an employee might submit a receipt for an Uber ride that wasn&#8217;t for business purposes.<\/p>\n\n\n\n<p>Or two colleagues on a trip together could both claim for the total cost of the same joint meal.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Budget Speech: 2026\/2027<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>Explore the key tax, payroll and employment changes from the 2026\/27 Budget<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-a2a54612-83e6-4a6c-b6a6-d71baac631c1\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1064\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2019\/07\/resize-1675x1275-41-1064x810.jpg\" class=\"single-cta__image\" alt=\"Smiling businessman using tablet\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2019\/07\/resize-1675x1275-41-1064x810.jpg 1064w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-detect-accounts-payable-fraud\"><a><\/a>How to detect accounts payable fraud<\/h2>\n\n\n\n<p>Recognising accounts payable fraud early can save your business a lot of money and hassle.<\/p>\n\n\n\n<p>In this section, you&#8217;ll find a list of common red flags to look out for and some accounts payable fraud detection strategies to be aware of.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-atypical-or-missing-invoice-details\"><a><\/a>Atypical or missing invoice details<\/h3>\n\n\n\n<p>This could be invoices missing important information, such as the VAT number or purchase order number.<\/p>\n\n\n\n<p>Also, look out for information that seems wrong, such as invoices that only list a PO Box number in the contact details section.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-inconsistent-supplier-information\"><a><\/a>Inconsistent supplier information<\/h3>\n\n\n\n<p>If you notice any discrepancies in your supplier records\u2014such as inconsistent business addresses, VAT numbers, or contact details\u2014this could be a red flag.<\/p>\n\n\n\n<p>Fraudsters often try to avoid detection by using fake or altered supplier details.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-suspicious-supplier-activity\"><a><\/a>Suspicious supplier activity<\/h3>\n\n\n\n<p>Regularly review your supplier database for signs of suspicious activity.<\/p>\n\n\n\n<p>This could include numerous inactive or duplicate suppliers listed in your files. Or invoice information that doesn&#8217;t align with the supplier details in your database.<\/p>\n\n\n\n<p>Also, pay close attention to any suppliers consistently awarded contracts, as well as new suppliers\u2014particularly if they&#8217;ve won a big, unexpected contract.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-duplicate-payments\"><a><\/a>Duplicate payments<\/h3>\n\n\n\n<p>It&#8217;s easy for duplicate payments to slip through the cracks, especially if invoices are processed manually.<\/p>\n\n\n\n<p>If you notice multiple payments for the same invoice or the same amount, it&#8217;s worth investigating further.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-unusual-payment-patterns\"><a><\/a>Unusual payment patterns<\/h3>\n\n\n\n<p>Be on the lookout for payment patterns that seem unusual or inconsistent.<\/p>\n\n\n\n<p>For example, are there sudden spikes in payments to particular suppliers or irregular payments that don&#8217;t align with normal business operations?<\/p>\n\n\n\n<p>These could be signs of fraudulent activity.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-missing-or-altered-documentation\"><a><\/a>Missing or altered documentation<\/h3>\n\n\n\n<p>If invoices, receipts, or other supporting documentation seem to be missing or look like they might have been altered, this is another potential indicator of fraud.<\/p>\n\n\n\n<p>Fraudsters often manipulate or destroy documents to cover their tracks.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-supplier-complaints-and-staff-behaviour\"><a><\/a>Supplier complaints and staff behaviour<\/h3>\n\n\n\n<p>If a supplier tells you they never received payment or complains of frequent late payments, look into it straightaway. Especially if your records tell you the payment was made.<\/p>\n\n\n\n<p>Keep an eye out for any unusual or suspicious employee behaviour.<\/p>\n\n\n\n<p>For instance, team members who live beyond their means or are reluctant to share duties with colleagues could indicate issues.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-accounts-payable-fraud-detection\"><a><\/a>Accounts payable fraud detection<\/h3>\n\n\n\n<p>To boost your chances of staying ahead of fraudsters, consider implementing the following accounts payable fraud detection strategies:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Regular audits and reconciliations: <\/strong>Conduct regular audits and <a href=\"https:\/\/www.sage.com\/en-za\/blog\/balance-sheet-reconciliation\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>reconcile your accounts<\/strong><\/a> to identify any discrepancies early.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Use of data analytics and AP automation tools:<\/strong> Automated systems that can help spot patterns of fraud or unusual activity.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Segregation of duties: <\/strong>Make sure that no one person oversees the entire accounts payable process. Separate duties between employees who initiate purchases, approve payments, and reconcile accounts.<\/li>\n<\/ul>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Budget Speech: 2026\/2027<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p>Explore the key tax, payroll and employment changes from the 2026\/27 Budget<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-a2a54612-83e6-4a6c-b6a6-d71baac631c1\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1064\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2019\/07\/resize-1675x1275-41-1064x810.jpg\" class=\"single-cta__image\" alt=\"Smiling businessman using tablet\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2019\/07\/resize-1675x1275-41-1064x810.jpg 1064w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-prevent-accounts-payable-fraud\"><a><\/a>How to prevent accounts payable fraud<\/h2>\n\n\n\n<p>Putting accounts payable fraud prevention measures in place is the best way to minimise the risk posed by fraudsters.<\/p>\n\n\n\n<p>There are various actions and strategies you can consider. Implementing one or more of these best practices will help you protect your business from AP fraud threats:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-strengthen-internal-knowledge-and-controls\"><a><\/a>Strengthen internal knowledge and controls<\/h3>\n\n\n\n<p>The foundation of preventing AP fraud is strong internal controls and frequent checks.<\/p>\n\n\n\n<p>These can include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Policies for verifying supplier information.<\/li>\n\n\n\n<li>Educating employees on fraud and its warning signs.<\/li>\n\n\n\n<li>Setting up checks and balances for approving payments.<\/li>\n\n\n\n<li>Ensuring that all invoices are properly reviewed before payment.<\/li>\n\n\n\n<li>Multi-level payment approvals for payments over a certain threshold.<\/li>\n\n\n\n<li>Regular reviews of transactions, random audits, and creating electronic audit trails.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-implement-a-supplier-verification-process\"><a><\/a><strong>Implement a supplier verification process<\/strong><\/h3>\n\n\n\n<p>Before accepting new suppliers, make sure you have a thorough verification process in place, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Checking the supplier&#8217;s tax number.<\/li>\n\n\n\n<li>Contacting them directly to confirm their identity.<\/li>\n\n\n\n<li>Verifying their physical address.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-leverage-ap-automation-software\"><a><\/a><strong>Leverage AP automation software<\/strong><\/h3>\n\n\n\n<p>Using AP automation software can significantly reduce the risk of fraud.<\/p>\n\n\n\n<p>These tools can help:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Automate invoice processing and approvals, tracking every movement of an invoice.<\/li>\n\n\n\n<li>Flag suspicious invoices, anomalies, and errors in real time.<\/li>\n\n\n\n<li>Create audit trails and compliant records for all of your transactions.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-accounts-payable-fraud-case-examples\"><a><\/a>Accounts payable fraud case examples<\/h2>\n\n\n\n<p>To better illustrate the potential consequences of AP fraud, here are some examples:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-manufacturer-defrauded\"><a><\/a>Manufacturer defrauded<\/h3>\n\n\n\n<p>A manufacturer lost millions of rand to an employee who manipulated accounts payable records for years.<\/p>\n\n\n\n<p>They were able to divert funds by authorising electronic transfers from the company&#8217;s bank accounts.<\/p>\n\n\n\n<p>They used these stolen funds to pay their personal credit card bills and make various personal purchases from luxury retailers.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-ap-clerk-sentenced-for-fraud\"><a><\/a>AP clerk sentenced for fraud<\/h3>\n\n\n\n<p>A former accounts payable clerk was sentenced to prison for diverting funds from their employer through fraudulent payments.<\/p>\n\n\n\n<p>They defrauded the company of hundreds of thousands of rand by transferring funds from the business&#8217;s bank account.<\/p>\n\n\n\n<p>These funds were sent to their own personal bank accounts, to creditors for personal bills, and to the bank account of another individual.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-embezzlement-following-signature-fraud\"><a><\/a>Embezzlement following signature fraud<\/h3>\n\n\n\n<p>An office manager embezzled nearly R3,700,000 from the business where they worked. They issued more than 100 fraudulent cheques to themselves, forging the signature of the business&#8217;s owner. They attempted to hide their fraud by disguising the cheques as payroll and loans.<\/p>\n\n\n\n<p>The fraudster also used a co-worker&#8217;s personal information to apply for and fraudulently obtain a credit card, which they maxed out.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-protect-your-business-from-accounts-payable-fraud\"><a><\/a>Protect your business from accounts payable fraud<\/h2>\n\n\n\n<p>Accounts payable fraud is a crime that can seriously damage your business.<\/p>\n\n\n\n<p>It can be costly and hard to detect, with new schemes and tactics emerging all the time.<\/p>\n\n\n\n<p>However, the right systems and strategies can help protect your business from becoming another victim of AP fraud.<\/p>\n\n\n\n<p>By implementing strong internal controls, using data analytics and automation, and educating your team about potential risks, you can reduce the likelihood of fraud in your AP department.<\/p>\n\n\n\n<p>Investing in intuitive <a href=\"https:\/\/www.sage.com\/en-za\/accounting-software\/accounts-payable\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>accounts payable software<\/strong><\/a> is a good first step. It can help detect fraud in real time, flagging suspicious activity and preventing unauthorised payments.<\/p>\n\n\n\n<p>Features such as automated invoice processing, fraud detection alerts, and secure payment processing can help safeguard your business against accounts payable fraud.<\/p>\n\n\n\n<p><strong>It&#8217;s time to act!<\/strong><\/p>\n\n\n\n<p>Review your AP processes, train your teams, and introduce fraud-proofing measures that will help give you peace of mind and keep your business vigilant.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-faqs\">FAQs<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1777380213053\"><strong class=\"schema-faq-question\">What is accounts payable fraud?<\/strong> <p class=\"schema-faq-answer\"><br>Accounts payable fraud is when someone deliberately manipulates your AP process to steal money from your business. <br><br>This can involve fake invoices, unauthorised payments, or altering supplier and bank details to divert funds<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1777380241710\"><strong class=\"schema-faq-question\">Why is accounts payable fraud so hard to spot?<\/strong> <p class=\"schema-faq-answer\"><br>AP fraud often exploits gaps in processes and internal controls.<br><br>It can look like normal day\u2011to\u2011day activity, especially in businesses with manual checks, high invoice volumes, or limited oversight.<br><br>In some cases, fraud runs undetected for years.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1777380277645\"><strong class=\"schema-faq-question\">What are the most common signs of accounts payable fraud?<\/strong> <p class=\"schema-faq-answer\"><br>Common warning signs include:<br><br>duplicate or missing invoices, <br>inconsistent supplier details, <br>unusual payment spikes,<br>altered documentation, <br>and suppliers claiming they haven\u2019t been paid when records suggest otherwise.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1777380330836\"><strong class=\"schema-faq-question\">Can accounts payable fraud come from inside the business?<\/strong> <p class=\"schema-faq-answer\"><br>Yes. <br><br>Employees with access to financial systems can misuse their position to approve fake payments, create fictitious suppliers, or collude with external vendors. <br><br>This is why segregation of duties and regular reviews are so important.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1777380357892\"><strong class=\"schema-faq-question\">How can small businesses reduce the risk of AP fraud?<\/strong> <p class=\"schema-faq-answer\"><br>Small businesses can lower their risk by strengthening controls, verifying suppliers, separating key AP duties, training staff on fraud awareness, and reviewing transactions regularly. <br><br>Even a few well\u2011applied checks can make a big difference.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1777380378844\"><strong class=\"schema-faq-question\">Does automation help prevent accounts payable fraud?<\/strong> <p class=\"schema-faq-answer\"><br>Yes. <br><br>AP automation tools help reduce human error, improve audit trails, and flag unusual activity in real time. <br><br>They don\u2019t replace good processes, but they make fraud much harder to hide.<\/p> <\/div> <\/div>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice enewsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Get a roundup of our best business advice in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-84fe79b5-668d-41f8-a0cc-6229018c4ac9\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1181404518-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2022\/04\/GettyImages-1181404518-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Learn accounts payable fraud prevention: how to spot schemes, minimise risk, and protect your business with our guide for South African businesses today. <\/p>\n","protected":false},"author":1774,"featured_media":460,"menu_order":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[25,27],"tags":[294,312,313,315,189,335],"business_type":[2,3],"lilypad":[],"context":[],"industry":[],"persona":[12,13,15,16],"imagine_tag":[51,52,63,353,68,83],"coauthors":[401],"class_list":["post-76118","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","category-strategy-legal-operations","tag-accountants","tag-audit","tag-bookkeeping","tag-business-intelligence","tag-financial-insights","tag-making-financial-decisions","business_type-small-business","business_type-medium-business"],"sage_meta":{"region":"en-za","author_name":"Yassir Malik","featured_image":"https:\/\/www.sage.com\/en-za\/blog\/wp-content\/uploads\/sites\/9\/2019\/04\/GettyImages-90134712.jpg","imagine_tags":{"51":"Accountants","52":"Accounting software","63":"Business intelligence","353":"Costs and cash flow","68":"Grow your business","83":"Growing business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice South 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