How Electronic Invoicing helps to reduce the risk of fraud

As in the paper invoice environment, the real risk in the electronic invoicing process is not in the delivery of the data but in the matching, processing and payment of the invoices in the receiver’s system. A company can be a victim of fraudulent behaviour only if it does not have the appropriate controls in place.

Security measures at the data transport level do not protect from fraudulent behaviours. If, for example, a company (or fraudster within that company) issues an e-invoice for products that have never been produced or with different bank account details, the security transport mechanism (for example an advanced electronic signature) will have absolutely no power to protect the receiver. Only the receiver’s internal controls and procedures will protect the receiver company.   Read more