Accounts payable fraud is growing, and it's getting harder to spot. From fake vendors to email scams, finance teams are facing more threats than ever before. These attacks are becoming smarter, slipping through the loopholes of standard checks and old systems.
Stop AP Fraud Before It Starts
See how HighRadius’s Agentic AI blocks fake vendors, flags risky invoices, and eliminates manual fraud checks
Request a DemoBetween 2023 and 2027, businesses worldwide could lose over $343 billion to payment fraud. And in many companies, the AP team is the first and last line of defense. But when teams rely on outdated tools or manual reviews, red flags are often missed or noticed too late.
That’s why finance leaders are now looking at a new solution, i.e, Agentic AI. Unlike basic automation, this technology can spot suspicious activity, investigate it on its own, and even take action before the damage is done. In this guide, we’ll show you how Agentic AI helps protect your AP process by stopping fraud before it happens.
Accounts Payable fraud involves the unauthorized manipulation of a company’s payment processes. It can be committed by internal employees, external attackers, or through collusion between the two. Common schemes include:
According to the Association of Certified Fraud Examiners (ACFE), billing fraud is one of the most common and expensive types of occupational fraud, often taking up to 18 months to detect. For large enterprises with high invoice volumes and a wide vendor base, the risk only grows.
Beyond direct financial losses, AP fraud can damage vendor relationships, lead to compliance issues, and complicate audits and regulatory reporting.
Agentic AI is a next-generation form of artificial intelligence built to take action, not just follow rules. Agentic AI observes its environment, learns from patterns, and initiates decisions independently.
In accounts payable, that means:
And because it learns continuously, Agentic AI becomes smarter with every transaction, turning reactive fraud controls into a real-time, self-improving defense layer.
Agentic AI shifts AP fraud detection from slow, reactive checks to real-time, autonomous protection. It doesn’t just flag issues, it investigates, acts, and learns. Here’s how it strengthens your defense at every step of the payment process:
Agentic AI verifies new vendor entries against internal records, third-party databases (e.g., business registries, sanction lists), and known patterns of legitimate vendors. If a supplier lacks verified tax IDs, uses inconsistent contact info, or mimics existing vendors, the system blocks the record and alerts the team before onboarding or payment.
Agentic AI monitors incoming payment instructions and vendor communications for domain spoofing, behavioral anomalies, or sudden bank detail changes. If something looks suspicious—like a one-letter domain change—it pauses the transaction, initiates a cross-verification using stored contact hierarchies, and prevents BEC-related fraud from proceeding.
Instead of just checking amounts or line items, Agentic AI compares each invoice to the vendor’s historical behavior—frequency, timing, pricing trends, and delivery consistency. It flags discrepancies that traditional rules might miss, such as altered invoice numbers, inconsistent tax calculations, or repeat billing with subtle differences.
When a risk is detected, Agentic AI generates a detailed incident summary that includes:
This context enables faster, informed decisions by AP, treasury, or compliance teams, without needing back-and-forth investigation.
Agentic AI uses feedback from previous cases—whether true fraud or false alarms—to refine its detection models. This reduces noise, improves precision, and ensures the system stays ahead of new fraud patterns without overwhelming AP teams with low-risk alerts.
Agentic AI doesn’t just accelerate fraud detection—it enhances accuracy, scale, and audit-readiness across the AP process. For enterprise finance teams, it means fewer disruptions, better control, and smarter decisions without increasing workload.
Agentic AI evaluates vendor behavior, transaction history, and contextual signals before raising alerts. This reduces false positives by up to 90%, so your team spends less time chasing harmless exceptions and more time addressing real risks.
Instead of detecting fraud after payment, Agentic AI intervenes earlier in the workflow. It blocks unverified vendors, pauses suspicious invoices, and automatically escalates review cases—protecting working capital before it’s compromised.
The AI engine evolves with every case it reviews, refining risk models based on outcomes, feedback, and new fraud tactics. This self-learning capability helps detect unfamiliar patterns that static rules would miss.
When fraud is suspected, Agentic AI auto-generates a full case file—including anomaly details, historical comparisons, and risk rationale. This helps teams resolve issues faster and reduces time spent piecing together supporting data.
As transaction volume increases, so does fraud risk. Agentic AI processes millions of records without adding headcount, making it ideal for AP teams supporting global or fast-scaling operations.
Every action taken by the AI—alerts, decisions, escalations—is logged automatically. This creates a transparent audit trail that supports internal policy enforcement, external audits, and regulatory reporting without added admin effort.
Agentic AI can be a powerful tool for stopping fraud, but it needs the right setup. Before you launch, make sure your data, team, and systems are ready to support it. Here are five things to check before you get started:
Begin by applying AI to a small but high-risk part of your AP process, like new vendor setup or high-value payments. This helps test results and fix early issues without disrupting everything.
AI works best when your data is clean. Review your vendor list to remove duplicates and fill in missing information. Standardize invoice formats so the AI can easily spot anything suspicious.
Decide what the AI can do on its own and when it should alert a person. For example, let it block small, risky payments, but send big ones to a team member for review.
AI will change how the AP team works. Show them what the system does, how to use it, and how it helps. This builds trust and makes adoption smoother.
Choose a technology partner with experience in accounts payable and fraud prevention. They should help you get started, connect with your ERP, and support you as you scale.
Agentic AI is reshaping the future of fraud prevention in accounts payable. Instead of reacting to fraud after it happens, AP teams can now detect and stop threats before any money leaves the system. Here’s how fraud prevention is evolving—becoming faster, smarter, and more proactive.
AI agents work around the clock, reviewing vendor records, invoice details, and payment activity. Suspicious patterns are flagged instantly—without waiting for manual checks—making fraud detection continuous and dependable.
Rather than generic warnings, Agentic AI provides insight into what triggered an alert. Whether it’s an unusual payment time or a vendor mismatch, the system explains the risk, helping teams respond quickly and accurately.
Agentic AI learns from every transaction. Over time, it can spot new types of fraud, such as subtle changes in payment amounts or unusual vendor behavior patterns that rule-based systems often miss.
As AI takes over day-to-day checks, AP teams can focus on high-value tasks like investigating root causes, improving controls, and preparing for audits, rather than scanning spreadsheets for errors.
Agentic AI helps finance, procurement, and IT teams work together by giving everyone access to the same real-time fraud data. That means faster decisions, stronger accountability, and fewer missed threats.
The long-term goal is clear: an AP process that can monitor, detect, and act on fraud without waiting for human input. As Agentic AI matures, finance leaders can expect fewer incidents, faster response times, and a more resilient payment process.
For today’s finance leaders, AP fraud isn’t just an operational risk—it’s a board-level concern. Agentic AI brings a proactive, intelligent layer of defense that aligns with broader goals of risk mitigation, compliance, and digital transformation. By moving from reactive checks to real-time, autonomous protection, CFOs can future-proof their AP operations and lead with greater confidence in every transaction.
Yes. Agentic AI outperforms traditional tools by detecting hidden risks like fake vendors, duplicate invoices, or unusual payment requests. It uses real-time data analysis, pattern recognition, and autonomous actions to flag fraud early, helping AP teams stay ahead of evolving threats without relying on static rules.
Yes. Agentic AI monitors user behavior, access patterns, and approval routes to detect potential internal fraud. It flags red flags like unusual invoice approvals, edits to vendor master data, or deviations from standard workflows, helping companies reduce insider risk and ensure stronger internal controls.
No. Agentic AI platforms like HighRadius integrate with your existing ERP and workflows. You can start with a pilot in one area of AP and scale over time. It learns from your historical data and adapts quickly, making it possible to add advanced fraud protection without disrupting current operations.
Yes. Agentic AI is designed to understand context, not just follow rigid rules. It learns from past data and patterns, which helps it distinguish between legitimate exceptions and real fraud. This reduces false alarms and saves AP teams time by focusing only on high-risk transactions that need attention.
No. While large enterprises benefit greatly, mid-sized businesses can also see strong ROI. Fraud risks exist at every scale, and Agentic AI’s ability to automate detection, flag suspicious behavior, and prevent losses makes it valuable for any AP team looking to strengthen controls and reduce manual effort.
Positioned highest for Ability to Execute and furthest for Completeness of Vision for the third year in a row. Gartner says, “Leaders execute well against their current vision and are well positioned for tomorrow”
Explore why HighRadius has been a Digital World Class Vendor for order-to-cash automation software – two years in a row.
HighRadius stands out as an IDC MarketScape Leader for AR Automation Software, serving both large and midsized businesses. The IDC report highlights HighRadius’ integration of machine learning across its AR products, enhancing payment matching, credit management, and cash forecasting capabilities.
Forrester acknowledges HighRadius’ significant contribution to the industry, particularly for large enterprises in North America and EMEA, reinforcing its position as the sole vendor that comprehensively meets the complex needs of this segment.
Customers globally
Implementations
Transactions annually
Patents/ Pending
Continents
Explore our products through self-guided interactive demos
Visit the Demo CenterPlease fill in the details below
Please fill in the details below
We have seen financial services costs decline by $2.5M while the volume, quality, and productivity increase.
Colleen Zdrojewski
Trusted By 1100+ Global Businesses
