How AI and ML Tools Can Detect Expense Fraud Before It Happens

A key component of effective technology expense management (TEM) is staying ahead of potential fraud within your organization. Activities such as fraudulent spending and incorrect auditing procedures can not only result in significant losses for the company, but it can damage its reputation as well. Recently, businesses have turned to using AI/M-powered tools to keep up with critical expense management activities, allowing them to detect signs of expense fraud before it even happens. Let’s learn more about these AI-powered expense management tools and how they can potentially help save your organization time and money.

AI Expense Management Tools Can Find Loopholes in Your Systems

Many fraudulent activities begin with the discovery of a loophole in a company’s expense management systems, which opens the door for anyone to take advantage of them. One common example of this that appears within organizations all over the country is employees making unauthorized purchases with a company credit card and changing the name of the transaction on the expense report to an innocuous item that wouldn’t raise suspicion. AI-powered expense management tools can evaluate the processes and capabilities of your expense management systems and identify loopholes that could lead to fraud.

AI Can Automatically Flag Suspicious Items on Expense Reports

AI can also automate certain procedures within your expense management processes to reduce human error and create more accurate reports. For example, AI-powered expense management systems can mark certain expenses on a report for review if they do not align with your predetermined expense types. This prevents transactions from being incorrectly categorized on expense reports, thereby eliminating the potential for fraud.

Prevent Unauthorized Personnel from Accessing Confidential Reports with AI

One of the leading causes of fraud within an organization is password sharing, a practice where team members give unauthorized access to expense reports and other sensitive information to other employees. In many cases, a company executive will share their passwords with their assistants to allow them to work on specific documents; expense reports can sometimes be accessed using these passwords, thus increasing the probability of fraudulent activities to occur. AI can help you create a detailed password-sharing policy that outlines which employees have access to valuable documents–including expense reports–to minimize the risk of fraud.

Discover the Benefits of AI-Powered Expense Management Tools with CCG

Many of the providers who design and distribute expense management software are adding AI-powered features that have the potential to help your business save millions of dollars from fraudulent activities. However, there’s a lot of options in the marketplace, and the time and effort required to find a solution that works for your business can pull your IT leadership team away from other important organizational activities. As a partner with several of the industry’s top providers, CCG can help your IT leadership team gain an unbiased view of which tools are the right fit for their business needs. Learn more about our expense management solutions today to see how we can help!