AI is changing the nature of payment fraud, making scams more convincing and fraudulent requests harder to spot. For businesses, the challenge is no longer simply recognising the threat, but ensuring they have the right safeguards in place to respond. New research from Eftsure highlights a growing disconnect between US businesses’ concerns about AI-fuelled payment fraud and their preparedness to prevent it.
The research found that 76% of US respondents are concerned about AI-assisted scams, including fake invoices and AI-generated fraud attempts. The findings highlight a clear challenge, in that recognising the threat is one thing, but having the right people, processes and technology to prevent it is another.
The human element of payment fraud
AI is making it easier for fraudsters to impersonate trusted individuals, create convincing communications and exploit familiar payment processes. As a result, businesses can no longer rely on employees simply spotting obvious red flags.
The risk is particularly pronounced when fraudulent requests appear to come from senior leaders. Employees may be reluctant to question instructions from people in positions of authority, allowing fraudulent requests to slip through even established payment processes.
Businesses need to create a culture where employees feel empowered to pause, verify and question suspicious requests, regardless of who they appear to come from. Verification should be a standard part of payment processes, not something employees feel uncomfortable doing.
Awareness isn’t translating into action
Concern about AI-assisted scams needs to translate into practical action, particularly when it comes to employee training.
Employees need clear guidance on verifying payment requests, confirming changes to supplier bank details and escalating suspicious activity. Training should reflect real-world scenarios and give employees the confidence to act when something does not look right.
Leadership also has an important role to play. When senior executives follow the same verification procedures as everyone else, they reinforce the message that no payment request should be exempt from scrutiny. Without that example, employees may feel pressured to prioritise speed or hierarchy over security.
Technology is another important part of the equation. Only 23% of respondents said their organisation uses dedicated fraud or account monitoring tools, highlighting a potential gap in businesses’ ability to detect suspicious activity.
Manual checks and approval processes remain important, but they can be vulnerable when fraudsters use convincing invoices or impersonate legitimate suppliers. Dedicated verification and monitoring tools provide an additional layer of protection, helping businesses identify discrepancies and validate payment details before money leaves the business.
As fraudsters increasingly use AI to make scams more sophisticated, businesses can also turn to AI to help fight back. By identifying unusual patterns, flagging suspicious activity and detecting potential threats, AI can strengthen existing defences. However, these tools should complement, rather than replace, clear processes and human oversight.
Ultimately, businesses should take a layered approach to payment security, combining appropriate technology with practical training, independent verification and clear escalation procedures. Responsibility should also extend beyond IT, with finance, procurement and executive teams working together to identify and manage risk.
Making payment security a priority
As AI makes payment fraud more sophisticated, businesses need to move beyond simply acknowledging the threat and focus on whether their defences are fit for purpose.
Bridging the gap between concern and preparedness requires businesses to prioritise verification, practical training and a culture where employees feel confident challenging suspicious requests.
The strongest defence against AI-fuelled payment fraud combines smarter technology with robust processes and a workplace culture where every payment request can be questioned and verified before it is approved.
Ramesh Menon is a product strategy and product management leader and a recognized technology visionary. He is Chief Product Officer at Eftsure, where he is responsible for the product strategy and roadmap for its B2B payment fraud prevention solutions. Previously, he was CTO at Global Data Consortium, leading product and data strategy for its global identity verification solutions, and earlier held product management leadership roles at Informatica and business leadership roles at Identity Systems, a division of Nokia Enterprise Solutions.
