---
title: What is invoice fraud?
url: https://www.medius.com/videos/finance-insights/what-is-invoice-fraud/
updated: 2026-09-10T15:30:41Z
---
# What is invoice fraud?

This educational video explains [invoice fraud](https://www.medius.com/glossary/invoice-fraud-guide-to-prevention-detection/ "Invoice Fraud: Guide to Prevention & Detection") as a business threat where criminals attempt to trick companies into paying fake or altered invoices. It covers common fraud tactics including fake bills for undelivered goods, duplicate invoices, and vendor impersonation schemes that target weaknesses in manual approval processes. The video highlights the significant risks of financial loss, reputation damage, and compliance issues that can result from invoice fraud, especially as businesses handle increasing invoice volumes across multiple systems. The explanation concludes by presenting modern accounts payable systems as a solution, emphasizing how automated validation, approval workflows, duplicate detection, and AI-driven monitoring can effectively prevent fraudulent payments by flagging suspicious activity before funds are released.

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Transcript

**What is invoice fraud?**
Invoice fraud occurs when someone attempts to trick a business into paying a fake or altered invoice. It can involve fraudulent invoices, duplicate billing, or unauthorized changes to vendor payment details.

**What it involves**
Common forms of invoice fraud include sending fake bills for goods or services never delivered, submitting duplicate invoices, or impersonating a vendor to request a bank account change. These tactics are designed to bypass manual controls and exploit gaps in approval processes.

**Why it matters**
Invoice fraud can result in significant financial loss, reputational damage, and compliance risk. As invoice volumes grow and finance teams operate across multiple systems, the opportunity for fraud increases if controls are not strong.

**Modern Prevention**
Modern accounts payable systems help reduce invoice fraud by using automated validation, approval workflows, duplicate detection, and AI-driven anomaly monitoring to flag suspicious activity before payment is issued.

**Closing**
Invoice fraud is the intentional manipulation of invoice or payment information to steal funds, and strong digital controls are essential to preventing it.

## Explore more:

### [Explore Medius Fraud & Risk Detection](https://www.medius.com/solutions/fraud-risk-detection/ "Fraud & Risk Detection")

Catch fraud earlier and reduce your risk exposure with advanced protection against invoice fraud and AP anomalies.

### [Close the AP fraud gap](https://www.medius.com/resources/guides-reports/closing-the-ap-fraud-gap/ "Closing the AP fraud gap")

Learn how AP teams can detect and prevent fraud before it hits.

### [Automate invoice capture](https://www.medius.com/solutions/medius-accounts-payable-automation/invoice-capture/ "Invoice Capture")

Learn how Medius uses invoice capture to extract the date from your supplier invoices and eliminate manual review.

### [Accounts Deceivable Podcast Series](https://www.medius.com/medius-podcast-series/#accounts-deceivable "Medius Podcast Series")

Listen to real life stories about the devastating impact that invoice fraud has on people, companies and communities.

[Watch more videos](https://www.medius.com/videos/ "Watch more videos")

## Ready to transform your AP?

[Book a Demo](https://www.medius.com/book-a-demo/ "Book a Demo") [Contact Us](https://www.medius.com/contact-us/ "Contact Us")