Every year, organizations lose billions from weaknesses buried deep within their accounts payable (AP) systems. As automation accelerates, those vulnerabilities become more exposed. “The question is not if your AP process is a target. The question is whether you are ready,” says Martin Resch, President and CEO at Cass Information Systems, who positions AP as a critical control point that shapes an organization’s financial exposure, risk posture, and operational discipline. This shift in perspective is central to how finance leaders must approach fraud detection today.
As businesses scale and adopt AP automation, the complexity of transactions increases, and so does the opportunity for vendor fraud. The challenge is not simply volume. It is velocity combined with fragmentation. Automated systems are designed for efficiency, but without strong payables controls, they can amplify weaknesses.
When organizations lack a unified view of invoices, approvals, and payments, anomalies can pass through undetected. “You cannot protect what you cannot see,” he says. “Timely and accurate data is not a nice-to-have. It is a requirement.” This is where many finance transformation initiatives fall short. They prioritize throughput and cost savings, but fail to embed the internal controls needed to sustain them. As a result, systems that were meant to reduce risk can inadvertently increase it.
Building Internal Controls That Hold
Effective fraud detection begins with visibility, but it does not end there. One of the most overlooked AP fraud prevention strategies is shifting audit practices upstream. Many organizations still rely on post-payment reviews, treating them as a safety net. In reality, that approach accepts loss as inevitable.
“Audit before you pay, not after,” Resch says. “Building rigorous validation and audit checkpoints into your workflows means anomalies get caught before the money moves.” This redefines how to detect AP fraud. Instead of reacting to discrepancies, organizations create friction at the right points in the process. Pre-payment validation, duplicate invoice detection, and vendor verification become embedded safeguards rather than reactive measures. For chief financial officers (CFOs) and treasury leaders, this is about compliance as well as designing systems that reduce financial exposure at scale. Treasury oversight must extend beyond cash management into the integrity of every outgoing payment.
Managing AP Fraud at the Enterprise Level
Technology alone cannot solve the problem. Even the most advanced AP automation platforms depend on the people who operate them. Resch emphasizes that managing AP fraud at the enterprise level requires cultural alignment. “The people running your systems and approving your transactions need to understand why.”
This is where many organizations underestimate risk. Internal controls are often treated as procedural requirements rather than shared responsibilities. Without accountability, even well-designed systems can be bypassed. A strong culture of payment integrity reinforces operational frameworks for fraud risk mitigation. Teams are trained to recognize anomalies, question inconsistencies, and escalate concerns without hesitation. This human layer is critical, particularly as fraud tactics evolve and increasingly leverage automation and AI.
It also addresses a persistent gap in vendor risk management. What CFOs miss in vendor risk management is not always data, but context. A vendor may appear legitimate on paper, but inconsistencies in behavior or transaction patterns often signal deeper issues. Empowered teams are better positioned to identify those signals early.
How Treasury Leaders Reduce Financial Exposure
Fraud risk in financial operations directly affects liquidity, reputation, and long-term resilience. Resch’s framework offers a practical guide for finance executives navigating this landscape. Visibility ensures that risks are identified in real time, such as pre-payment controls, which help prevent losses before they occur, and a culture of accountability to sustain these practices over time.
Together, these elements strengthen an organization’s risk posture while enabling growth. Companies that invest in these capabilities are better equipped to scale without compromising control. “These three principles will not mitigate every threat,” Resch says. “But they will make your organization a far harder target.” As he often repeats to clients, fraud prevention is not about eliminating risk entirely. It is about building systems and behaviors that consistently reduce exposure, even as complexity increases.
A More Resilient Approach to Finance Operations
As finance functions continue to evolve, AP will remain a focal point for both innovation and risk. Managing fraud is no longer a reactive exercise. It is an integral part of how modern organizations design processes, deploy technology, and build teams. For finance executives, the message is clear. Strengthening payables controls is not just about preventing loss. It is about enabling confident, scalable growth in an increasingly complex environment.
Follow Martin Resch on LinkedIn or visit his website for more insights.
Sources cited by Martin Resch
Federal Bureau of Investigation. (2025, April 23). FBI releases annual internet crime report. https://www.fbi.gov/news/press-releases/fbi-releases-annual-internet-crime-report
HighRadius. Accounts payable fraud. https://www.highradius.com/resources/Blog/accounts-payable-fraud
Ramp. Accounts payable audit. https://ramp.com/blog/accounts-payable/accounts-payable-audit
Kefron. (2020, September). Invoice fraud detection & prevention: Fake invoices. https://kefron.com/2020/09/invoice-fraud-detection-prevention-fake-invoices/
TransUnion. (2025). H2 2025 global fraud report. https://newsroom.transunion.com/h2-2025-global-fraud-report/
