How Businesses Can Preserve Trust Against the Rising Threat of Fraudulent Invoices

There’s a story playing out in businesses across the globe, and it’s one that’s becoming increasingly difficult to ignore: the growing menace of fraudulent invoices. The issue is larger than ever for organizations, with recent reports finding that 80 percent of organizations were victims of payments fraud attacks or attempts last year, a 15 percent increase over the previous year. At its core, this isn’t just a financial issue—it’s a trust issue. We trust our systems, our processes, and our people to handle transactions with integrity. But as fraudsters become more sophisticated, that trust is being challenged.

When you lose trust, you lose something far more valuable than money—you lose the foundation of everything we build businesses on. We talk a lot about building great teams and fostering innovation, but that can only happen in an environment where trust thrives. Fraud erodes that trust.

So what do we do about it? How do we protect the relationships we’ve worked so hard to build, and the money that sustains our operations?

After 22 years working to protect organizations against incoming threats to their business, I’ve picked up some best practices in keeping key relationships strong through difficult circumstances. Here are a few methods organizations can employ to maintain and rebuild trust in key relationships as the threat of fraudulent invoices continues to rise.

Fraud risks evolve rapidly, and businesses must stay ahead of the curve. Open, frequent communication about the risks of fraudulent invoices is critical. Companies should not wait for an incident to occur before raising awareness; they should be proactive in educating employees, clients, and partners about potential threats and the importance of vigilance.

Establishing a culture of fraud awareness involves ensuring that key stakeholders are regularly briefed on the latest fraud trends. Regular training sessions, team workshops, and even industry-specific updates should be part of a continuous learning cycle. Communication must also extend to clients and business partners—ensure that they are aware of the company’s fraud prevention protocols and encourage them to be transparent about their own measures.

Preventing fraud is always more effective than reacting after the damage is done. Businesses should employ robust preventive measures that make it difficult for fraudsters to succeed in their schemes. One of the most effective ways to mitigate this risk is through standardized verification procedures, ensuring every invoice is thoroughly checked before payment is processed. Verification could include cross-checking the invoice with purchase orders, confirming payment details, and ensuring consistency with previous transactions.

Investing in digital systems that incorporate security features, such as invoice approval workflows and real-time fraud detection, can help reduce the chances of fraudulent documents slipping through. The use of AI and automation to detect patterns of fraudulent behavior is also gaining traction, as these tools can identify anomalies and flag potentially fraudulent invoices in real-time.

While human vigilance is essential, the right tools can enhance any company’s ability to detect and prevent fraudulent invoices. Implementing fraud detection software, leveraging machine learning algorithms, and using digital identity verification tools can all significantly reduce exposure to fraud.

AI technology has proven effective in recognizing irregularities in invoices and flagging suspicious transactions. Automated software can scan invoices in real-time and cross-check them against databases of known fraudsters, helping businesses act swiftly. Moreover, tools that track invoice patterns and automatically alert finance teams to inconsistencies can provide another layer of protection.

In addition, businesses should consider credit insurance as a safeguard against losses. Credit insurance not only provides financial protection but also helps businesses take a more strategic approach to managing fraud risks. By coupling insurance with other preventive measures, companies are better positioned to mitigate the impact of fraud on their operations.

At the heart of it, utilizing these tools provides something that every leader wants: confidence. When you know your business is protected, you can take more risks—enter new markets, onboard new suppliers, expand operations—without the fear that one fraudulent invoice could bring everything crashing down.

Here’s the thing: fraud isn’t going away. In fact, it’s getting smarter, faster, and more disruptive. But that doesn’t mean we should retreat. We can choose to face the challenge head-on.

As I think back on my time with Allianz Trade, I’ve seen firsthand many times that successful companies are those that evolve to face the major risks of the day. While the nature of the fraud may change, we need to evolve with it to effectively confront any issues that may arise now and in the future. By building stronger defenses, fostering trust, and employing the tools available to us, we can ensure that we’re not just reacting to fraud, but preventing it—and leading with confidence into the future.