Where to Look When Vendor Fraud is Suspected
Updated: Oct 3, 2022
Vendor fraud can be committed by employees or vendors acting alone or in collusion with each other. Here are a few things Fraud Examiners look at when inspecting accounts payable records:
- Vendors whose mailing addresses are P.O. Boxes
- Companies who are not on a list of approved vendors
- Invoices with even dollar amounts or no taxes added
- Payments without supporting documentation
- Names, addresses, bank account numbers and telephone numbers of vendors that match those of employees
- Invoices created using Microsoft Excel or Word invoice templates
- Invoices from the same vendor with consecutive invoice numbers
- Vendors with similar names
- Vendors without tax IDs or using invalid tax ID numbers
- Drastic changes in prices provided by a particular vendor
- Vendor names that consist only of initials which are then matched against employee initials.
In the event you suspect vendor fraud contact Jerry of Ipsen Due Diligence. If an employee is acting in collusion with a vendor to commit fraud, reach out to HR and your company attorney before taking action against the employee.