Basware unveils AI-powered solution to combat invoice fraud

Basware, known globally for its proficiency in accounts payable automation and invoice processing, has released AP Protect. This artificial intelligence (AI)-powered solution is aimed at arming finance teams to shield their companies from potential fraudulent activity, invoice mistakes and ensuing profit loss.

In the previous year, Basware pinpointed and rectified 10,800 incorrect payments attributed to duplicate transactions and fraud. With a total expenditure of $245bn, Basware was successful in recouping $191m, thereby ensuring a firm holds onto $1m for every $1bn spent.

A considerable 70% of businesses are victims of fraudulent invoices or payments annually, with accounts payable personnel being the primary target. Vendor impersonation scams contribute to these figures significantly, with 58% of companies compromised each year through such fraudulent tactics. These scams present significant challenges for those aiming to maintain financial integrity.

The AP Protect solution by Basware directly addresses these issues. It uses over 800 algorithms and carries out real-time monitoring to spot potential errors, prevent overpayments, and detect any fraudulent activities. All of these capabilities act as a shield to protect a company's bottom line which is of critical importance.

Furthermore, AP Protect utilises a confidence indicator system which minimises the chance of false positives. False positives, in this case, refer to transactions that are mistakenly marked as fraudulent. By reducing such instances, AP Protect enables finance managers to protect their working capital and navigate through uncertain economic conditions.

AP Protect boasts three core features. It has procedures in place to prevent overpayment by recognising errors and stopping unnecessary payment of funds. Its fraud prevention capability allows it to highlight dubious vendors and scrutinise questionable transactions during the invoice analysis stage. The vendor analysis feature mitigates root causes of overpayment and fraud present in the vendor master data.

AP Protect's launch is in line with Basware's strategy to prevent profit loss and fraud. This is on the back of the firm's acquisition of Glantus. With the broader scope provided by AP Protect, businesses can now cover more than merely AP automation. They can monitor every stage of the invoice's lifecycle, ensuring optimal management.

Jason Kurtz, CEO at Basware, commented on the importance of safeguarding a company's invoice procedures and preventing loss of profits, stating, "Fraud and profit loss are keeping CFOs up at night, as they struggle to protect their organisations from the rising tide of financial risks. AP Protect safeguards AP processes to remove these pressures and maintain the highest standards of financial integrity. By detecting transactions for potential errors and fraud risks during the invoicing process, money is protected from a company's bottom line."