How do you handle and report suspected invoice processing fraud incidents and cases?

2 Verify the invoice

The second step is to verify the authenticity and accuracy of the invoice. To do this, you should cross-check the invoice against the purchase order, contract, delivery note, or other supporting documents. Additionally, it is important to contact the supplier or vendor using the official contact details on file, not the ones on the invoice. Furthermore, request proof of delivery, receipt, or service completion and compare the invoice with previous or similar invoices from the same supplier or vendor. Also, review the invoice history and payment records of the supplier or vendor and search online for any information or reviews about the supplier or vendor. If you cannot verify the invoice or find any discrepancies or red flags, do not process it and proceed to the next step.

3 Escalate the issue

The third step is to escalate the issue to your supervisor, manager, or the designated person in charge of invoice processing fraud prevention and response. It is essential to report the suspected fraud as soon as possible and provide all the relevant details and evidence. Additionally, you should follow established policies and procedures for reporting and handling invoice processing fraud incidents and cases, cooperate with any investigation or audit conducted by your organization or external parties, and maintain confidentiality and professionalism. By escalating the issue, you can protect yourself from any liability or accusation as well as help your organization resolve the issue quickly and effectively.

5 Prevent recurrence

The fifth step is to prevent recurrence and reduce the risk of invoice processing fraud in the future. You should review and update your policies and procedures to ensure they are clear, consistent, and compliant. Additionally, it is important to implement and follow best practices for invoice processing, such as segregating duties, enforcing approval limits, verifying invoices, reconciling accounts, and auditing transactions. Furthermore, you should educate and train yourself and your colleagues on how to prevent, detect, and report invoice processing fraud. Additionally, you should monitor and report any trends, patterns, or anomalies in invoice processing activities and performance. Lastly, you can use technology and tools to automate, streamline, and secure your invoice processing workflow. By taking these steps to prevent recurrence of fraud, you can improve your invoice processing efficiency and quality while safeguarding your organization's assets and reputation.

6 Learn from the experience

The sixth and final step is to learn from the experience and use it as an opportunity to improve your skills and knowledge. You should seek feedback from supervisors or mentors on how you handled and reported the suspected fraud. Identify and address any gaps or weaknesses in your invoice processing skills or knowledge, as well as seek out any training or development opportunities related to invoice processing fraud prevention and response. Additionally, share your insights and lessons learned with your colleagues and peers, and stay updated on the latest trends, best practices, and regulations related to invoice processing fraud. By doing so, you can enhance your professional competence and confidence and become a more valuable and trusted invoice processor.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?