How AP Automation Safeguards Against Fraud?
Cloud Security and GDPR Compliance
An advanced AP automation platform delivers robust cloud infrastructure and strict adherence to international regulations. Your company data is isolated and protected with unique encryption keys, eliminating the risk of data exposure.
Certified platforms, such as those with ISO 27001 certification and full GDPR compliance, ensure that your sensitive information is handled with the highest standards of confidentiality, integrity, and availability. This means you can approve payments, manage supplier data, and oversee AP operations knowing that your controls meet regulatory requirements and protect both your company and your reputation.
Multi-Factor Authentication
One of the easiest targets for fraud in an AP team is when the AP process is manual, especially involving paper. Papers are accessible to anyone and can be moved around without a documented trace.
AP automation platforms, being digital, come with built-in security measures, ensuring sensitive financial data is handled safely and only by authorised users. One key feature is Multi-Factor Authentication (2FA/MFA), which adds an extra layer of protection.
MFA requires two forms of verification (typically a password plus a time-sensitive code sent to a registered device) before granting system access. Even if a password is compromised, unauthorised access is blocked unless the second authentication step is completed. This means your confidential and sensitive information stays secure.
AI-Powered Anomaly Detection
In modern AP systems, AI is becoming a non-negotiable. Traditional fraud detection relies on static rules like flagging invoices over certain amounts. AI-powered AP automation learns what "normal" looks like for your company and flags outliers, such as discrepancies in vendor banking details.
It can automatically verify the bank details extracted from an invoice against the information you have stored for each of your suppliers. If there is any variance between the two, the system will flag it to you in your approvals workflow. Further, an efficient system provides a full audit history of the changes made to bank details for each supplier.
Strengthens Internal Safeguards
The beauty of an efficient AP automation solution lies in its control over user permissions, which helps you maintain security across the business. Not every user will have the same access. You can assign roles (e.g. Admin, User & Approver) and combine permissions. Since only certain users can manage permissions or user accounts, changes to user roles are controlled and traceable.
Users only see and act on what their role allows, limiting the “blast radius” if one user account is compromised. For example, if a user is in the marketing department, within approvals or purchase orders, they will only be able to view specific suppliers that they have been assigned to. Users who are not in that department won't be able to view the supplier documents.
This separation helps catch collusion or internal fraud. As a result, if someone compromises a low-privilege account, they can't escalate or access additional areas to commit fraud.
Mobile Security
Many AP automation solutions offer a mobile app with biometric authentication, specifically Face ID and Fingerprint ID. This is designed to enhance security as you approve documents while on the move.
Biometric login ensures that only you, or another authorised user, can access the app, even if a device is lost or stolen. At the same time, it lets you quickly review and approve without wasting time on passwords, keeping your approvals fast, secure, and audit-ready.
Audit Trails For Every Invoice
A clear and reliable audit trail is crucial, not only for compliance but also for protecting your company and making informed decisions. AP automation transforms this requirement from a burden into a competitive advantage.
Every action on an invoice, from receipt to payment, is automatically tracked, creating an unbroken chain of evidence. You gain complete visibility into the audit history of each document, including all decisions and the individuals responsible for them. This detailed tracking ensures accountability, strengthens internal controls, and gives you confidence that your AP processes are both secure and fully auditable.
Final Thoughts
Cybersecurity is no longer just the IT department’s responsibility. It’s a shared priority across finance, operations, and leadership. AP automation brings structure and security to this complexity. It gives you visibility, control, and confidence that your systems are protected.
