Employees are turning to generative AI to forge expense receipts, report finds

A growing number of employees are using generative AI tools to create counterfeit expense receipts, complicating corporate compliance and fraud detection, according to a new report. AppZen said AI-generated receipts represented roughly 14% of fraudulent submissions last month, up from none a year earlier. Fintech firm Ramp reported flagging more than $1 million in suspect invoices in 90 days, citing increasingly sophisticated attacks including spoofed vendors and altered bank details. OpenAI said it monitors image generation on and off its platform, embeds C2PA provenance metadata, and takes action against policy violations, while continuing to refine its rules. Legal experts warn employees face termination and potentially criminal charges—including wire and bank fraud—if caught. The surge underscores how generative AI is testing internal controls across expense management and accounts payable, forcing companies to tighten verification and invest in detection tools.

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