Learn how Medius leverages AI to combat financial fraud, protect businesses, and enhance accounts payable processes in today’s high-risk landscape.
Ahmed, with over 15 years of experience in the technology sector, including serving as Chief Information Officer at expense management firm, Expensya, how have you seen the industry evolve, particularly in terms of addressing financial fraud?
According to the 2024 AFP Payments Fraud and Control Survey Report, 80% of organizations were victims of payments fraud attacks or attempts in 2023 – 15% higher than in 2022. Further, from 2020 to 2024, the percentage of payments fraud attacks/attempts remained above 65%. This factor, coupled with an uncertain economic climate, high turnover rates and talent retention, has forced the industry to navigate these challenges in order to maintain profitability in 2024. However, where we have witnessed a shift in the industry today (which we project will continue to evolve) is the growing adoption of AI and automated technologies. Alongside the critical prevention and detection of fraud, the automation of manual and repetitive processes, reduction of human errors and capturing and analysis of crucial business data will only contribute to a business’ success.
Since joining Medius in late 2023, what have been your primary goals and achievements as Chief Transformation & Information Officer?
One of the main goals I’ve worked on with our teams has been to deliver our AI ambitions, supporting all our teams to adopt AI in their operations but also be aware of its risks. We trained the whole company on AI skills to support higher productivity internally, and from the Medius product suite perspective, our teams shipped multiple new AI solutions including Supplier Conversations (to answer Suppliers queries) and Medius Copilot (to answer AP solution internal users’ queries).
We continue to invest in AI and as Transformation and Information System Leader, my team and I are committed to achieving AI leadership in our Office of the CFO space.
Can you explain how AI is currently being utilized by Medius to stop invoice fraud? What specific technologies or methodologies are being employed?
Medius recently unveiled its 2024 Financial Census report which surveyed more than 1500 senior finance executives across the UK and US, gathering their viewpoints on topics at the forefront of the industry – including the rise of fraud and deepfakes. When asked about how finance teams are being impacted by growing rates of invoice fraud, respondents cited 13 cases of attempted invoice fraud and 9 cases of successful fraud in just the past 12 months. Among these cited cases, the average total loss amounted to $133,000 in the US and £104,000 in the UK.
In the age of AI, Medius has been leading the way in the integration of intelligent technologies to solve for growing invoice fraud. For finance teams tasked with managing an influx of invoices, Medius has integrated AI to turn email, eInvoices, PDF, XML and paper invoices into simple, secure and automated processes – to both reduce the risk of fraud and enhance invoice processing.
Combined with the integration of AI tools, Medius continues to combat invoice fraud through:
- 3-way matching – verifying that the invoice matches both the purchase order and the receipt of goods
- Validation of supplier data (including IBAN Fraud checks)
- Review of invoice activity and invoice amounts
- The establishment of a system of multistage authorizations
- The integration of anomaly detection technology/intelligent solutions to the invoice to pay process
How can organizations effectively leverage AI technology to protect and defend themselves against financial fraud?
Educate. Adopt. Leverage. Deepfake scams, which utilize AI and existing online videos and audio content to create false audiovisual content, have become a significant source of fraud within the finance industry. For global financial professionals surveyed in the Financial Census report, 53% reported having been targeted by attempted deepfake scamming attacks, and 43% admit they have fallen victim to an attack. Further, an alarming 87% admitted that they would make a payment if “called” by their CEO or CFO. As just one example of how fraudsters are leveraging AI to commit financial fraud, this poses an existential threat to any business’ financial security and reiterates the need for implementing strategic approaches to stay ahead of fraudsters in 2024.
When evaluating the growing presence of deepfake scams, an even more frightening statistic from the survey – which reiterates the importance of education when it comes to fraud – reveals that over a third (33%) of finance professionals don’t feel well educated enough to tackle deepfakes. Further, just 36% of professionals are very confident a colleague would spot a deepfake fraud attempt. As such, by leveraging AI technology – powered to track and identify anomalous transactions based on large data sets – finance teams are alerted and can stay ahead of potential threats.
AI makes financial fraud easier for criminals. Could you elaborate on how this happens and what businesses can do to counteract these advanced threats?
It remains crucial for businesses to both recognize how fraudsters are leveraging AI technology to commit financial fraud and prepare their businesses to ensure they do not fall victim to attacks. Today, we are witnessing traditional phishing attacks transpire through the use of Dark Web technologies like ‘Fraud GPT,’ which enables fraudsters to produce phishing emails with the intent of scamming businesses who may identify them as genuine or fake at scale. The rise of more sophisticated scams has further enabled criminals to produce codes needed for mass attacks, allowing them to broaden their reach of potential victims.
Additionally, specific to the operations across financial teams, fraud is further perpetuated through:
- Duplicate invoices and payments
- Altered invoices and payments (like a seemingly valid invoice, but with a different banking detail to collect payment)
- Foreign transaction exchange alteration
- Stolen bank and credit card information
- Altering details and data of wire or electronic transfers
- Altering details and data of expenses or reimbursements
Alongside the previously discussed growth of deepfake scams, businesses must respond to AI-enabled financial fraud threats by using the same technology to their advantage. This includes through automation built to analyze patterns in data and detect anomalies, validate authentic vendor data and spot out altered, duplicate or fraudulent invoices and payments and overall, broaden visibility in cash flow management.
Why is the accounts payable (AP) process particularly crucial in the fight against financial fraud? What unique challenges does it present?
Foundational success for finance teams within any organization relies on having a secure, modern and structured accounts payable (AP) process. Today, finance teams are at their most vulnerable when it comes to fraud and risk management, as fraudsters are finding new ways to commit scams through AI and threaten the overall security of an organization. This threat is only elevated when finance teams rely on manual invoice processing and time-consuming tasks – with Medius research revealing that one in five finance professionals believe their job is being dominated by monotonous, boring and demotivating tasks.
When finance teams forgo the adoption of technology such as AI and machine learning within their AP processes, they open themselves up to slowed progress and innovation and become increasingly vulnerable to potential fraud.
Your more than 15 years of professional experience includes holding positions at Ericsson and Alstom. How did your experience with these companies influence your approach at Medius?
My experience at Ericsson and Alstom shaped my understanding of how crucial data is as a strategic asset for any organization. Working in the telecommunications and manufacturing sectors, I developed a deep appreciation for the importance of seamless data integration and well-structured data flows to drive efficiency. These roles taught me to ensure that business outcomes are at the core of every technical implementation and that decisions should be driven by actionable data rather than assumptions.
Working in those industries instilled in me the discipline to create systems that are not only robust but also adaptable to rapid technological changes.
These experiences deeply helped my approach at Medius and made it straightforward for me when putting in place our AI transformation programs.
During your tenure as CIO at Expensya, what key insights did you gain that are applicable to your current role at Medius?
During my tenure as CIO at Expensya, I gained valuable insights that have proven directly applicable to my role at Medius. Expensya operated in a fast-paced, innovative environment focused on simplifying complex expense processes through automation and cutting-edge technology. This experience reinforced my understanding of the power of scalable systems, user-centric design, and the importance of aligning technology strategy with business goals.
Also, as an executive committee member and with a leadership role, I learned to drive cross-functional teams to adapt quickly to market changes and customer needs while keeping innovation at the forefront without compromising on quality. At Medius, this translates to fostering a culture where teams are empowered to iterate rapidly, ensuring our solutions remain at the cutting edge of the industry. These experiences have equipped me to contribute meaningfully to Medius’s mission of transforming how businesses manage spend and operational efficiency.
In your opinion, what does the future hold for AP automation and spend management solutions? How will AI continue to shape this landscape?
Businesses lacking a modern AI-driven AP solution will face escalating fraud and risk, leading to supply chain disruptions, dissatisfied suppliers, customers and employees, and ultimately jeopardizing their brand reputation and ability to operate.
Financial professionals are calling out for increased digitization of processes, fraud detection tools and management technology, education and training of teams in new tools and the use of AI and generative AI. Finance teams and leaders are at the forefront of solving their business’ internal and external challenges, maintaining sustained growth and ensuring success in an uncertain economic environment. This requires a deep evaluation of the current processes in place that can be altered and integrated with AI tools and automation to ultimately keep their businesses profitable and protected against growing threats of fraud.
What key advice would you give to businesses looking to adopt AI-driven solutions to outpace fraudsters and enhance their financial fraud prevention strategies?
Educate, evolve and evaluate. Success through the adoption of AI-driven solutions will crucially rely on the work of finance teams leveraging this technology. By introducing transformative solutions set to make everyday operations more efficient and effective, teams are equipped with AI expertise to understand the technology and best leverage it within any business. With the vast majority of finance professionals happy with the adoption of AI, enlisting AI experts will also be crucial to both attracting and retaining talent across finance teams. To outpace fraudsters and enhance financial fraud prevention strategies, businesses must be willing to take the next step in investing in and integrating new tools. While recognizing the risks involved with adoption, it also remains critical to conduct frequent evaluations of how the technology is being leveraged as well as the negative and positive impacts it has on overall operations.
Ahmed Fessi,
Chief Transformation & Information Officer at Medius
Ahmed is the Chief Transformation & Information Officer and joined Medius through Medius’s acquisition of Expensya in July 2023. Ahmed was the CIO at Expensya, a leading web, mobile and smart payment-card solutions to automate spend management. Prior to Expensya, Ahmed held positions at Ericsson and Alstom.
About Medius
Medius links invoice capture, processing, and payment to replace the worry and wondering of managing AP with calm and confidence. Medius goes far beyond basic automation by using artificial intelligence to do most of the work – so invoices get confirmed, coded and paid; AP teams get to go home and rest easy; and businesses can trust their budgets and forecasts. Medius, on a mission to transform the spend management category using the power of automation and AI, has more than 4,000 customers across 116 countries and processes $200 billion in annual spend through its system. Visit medius.com to learn more.
