Joining us in this week’s AP Arms is Debra Richardson, Certified Fraud Examiner and Founder who offers training and consulting in the vendor management space.
Debra talks about her own personal framework that blends technology, people and best practice to combat the growing threat of fraud in AP, particularly in vendor set up and maintenance.
Watch the episode ▶️
Meet Debra...
Debra‘s journey began as a Senior Accounts Payable Manager, where she oversaw a team of 17 responsible for over 140,000 active vendors across multiple ERPs. She quickly saw the vulnerabilities across the process and the opportunities for fraud.
Now running her own training company, Debra is dedicated to educating AP teams and providing tools to help them safeguard their vendor data.
Debra has a real passion for AP and is always looking to pass on her knowledge across her YouTube channel, LinkedIn newsletter and podcast, ‘Putting the AP in Happy’ - making her a worthy guest at the AP Arms.
Fraud never sleeps
Accounts Payable is a big target for fraud, and the risk has only increased in the last few years. As just one example, vendor email compromise (when fraudsters get inside your supply chain emails) rose by 66% in 2024, up from 2023.
Scammers are constantly adapting their methods to find weaknesses in internal controls. For Debra, this was a wake-up call early in her career, prompting her to develop a framework to help AP teams avoid fraud, regulatory fines and bad vendor data.
As fraud becomes more sophisticated, traditional cybersecurity training often falls short in preparing AP teams for the nuances of vendor fraud. Debra’s mission is to equip AP teams with the right techniques, internal controls and best practices to identify fraud before it impacts the business.
AI: The threat, but also the answer
Fraudsters have advanced beyond typical phishing tactics, using sophisticated methods to bypass filters and reach AP teams directly. Debra points out that the emails AP teams receive can look indistinguishable from legitimate communications, making it harder to spot fraud.
“Fraudsters are using large language models like ‘fraud GPT’ or ‘worm GPT,’ so the emails you receive may have no grammatical or contextual errors,” Debra explains. “If you see an email like that, it's intentional because fraudsters want to weed out the people who won’t fall for their next-level tactics.”
“We have to arm ourselves with the right technology,” says Debra. “AI and fraud prevention systems are essential to spotting fraudulent emails that make it through filters."
A combined effort
Debra’s approach focuses on the need for a combination of human vigilance and technological support.
“Humans can’t be 100% vigilant all the time,” she says. “But by using a combination of authentication techniques, vendor validations and technology, you can mitigate fraud risks.”
Debra recommends implementing a clear authentication process when verifying vendor data changes, such as requesting existing banking details and using multiple methods to confirm changes. This is particularly important when it comes to high-risk vendor requests like changes to payment details. She also advocates for the regular documentation of everything, allowing teams to spot patterns and trends that could indicate fraud.
The importance of training and education
Debra’s core message to AP teams is that they need to continuously educate themselves on emerging fraud tactics.
“Fraud is always evolving,” she says. “As AP professionals, we need to stay ahead of the curve with ongoing training and a strong fraud prevention framework.”
For AP teams looking to take their fraud prevention strategies to the next level, Debra’s website is full of resources, including her podcast and other free content aimed at supporting AP teams.
Tech alone won’t save you – it’s about the people
Debra’s final piece of advice for businesses looking to improve their fraud prevention processes is that technology is a tool, not a cure-all.
“Technology is there to support your team and help prevent fraud, but the success of any fraud prevention strategy starts with the people,” she says.
By combining the right technology with the right people and processes, Debra believes that AP teams can safeguard their business against fraud while ensuring that their vendor data remains secure.
To learn more about fraud prevention and access Debra’s resources, check out her website and podcast for more expert tips.
A huge thank you to Debra for sharing her insights on the framework to prevent fraud.
If you’d like to feature alongside some of the industry’s finest at The AP Arms, please get in touch – we’d love to share a tipple with you down the pub!
