Accounts Payable (AP) fraud refers to deceptive practices aimed at exploiting the payment processes of an organization for illegitimate financial gain. This type of fraud can occur internally or externally and often targets the vulnerabilities in a company’s procurement and payment systems. Common forms of AP fraud include:Billing schemes with fake or inflated invoicesCheck tampering or forgingACH fraud through unauthorized electronic transfersBusiness Email Compromise (BEC) scamsExpense reimbursement fraud by employees Vendor master file manipulationAP fraud can result in significant financial losses, damaged supplier relationships, and reputational harm. It often exploits weak internal controls, lack of separation of duties, or inadequate verification processes