Invoice Fraud
Cyber Attacks Leading to Invoice Fraud
If hackers gain access to vendor data and client lists, they can e-mail clients fake invoices, supposedly from your company. By the time the unsuspecting client realises, the wrong account may well have been paid and funds would have disappeared.When you receive invoices by e-mail, despite 4-eye controls (where a second person authorises invoices), unsuspecting employees may approve and wire out funds to hackers inadvertently, leaving you out of pocket.
The best protection is to prohibit all payments via e-mail and instead move all billing to a secure portal capable of processing invoices.
Internal & External Fraud
Internal staff with knowledge and system access could set up fake clients, process fake orders, issue returns and wire out funds to shell companies. Or they might set up fake suppliers and purchase orders and wire their own bank account. Adaptive ERP automates internal controls for material risks, by applying the 4-eye principle, which requires a second independent person to authorise all outgoing payments. It also includes strict RBAC (risk-based access controls), built within each module, to ensure only authorised staff may send out payments, or invite Clients to Onboard.Supplier labour, material and product pricing are approved before being stored in the system. The benefit here is two-fold: First it provides Shadow Invoicing to ensure your invoice matches that of the Supplier. Second, it prevents a Supplier trying to push through a different price to the contractual or verbal one, whether spare parts or labour costs.
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Adaptive Invoicing
| Feature | Benefit |
|---|---|
| 1. Invoices Only Accessible through our Secure Portal: | Clients, Suppliers and your entire team are invite-only. Each user signs up and logs in via our secure Key-Based 2-Factor Authentication login, using a PIN which is never transmitted or stored and would fail after a few incorrect attempts. The PIN is entered onto a special keypad so keyloggers (malware) could not detect the PIN. Users enter their PIN then click on a matching image - this protects against BOTs, making it close to hack-proof |
| 2. Client Order Management: | When Clients place an order, an invoice is automatically issued and appears instantly in the user's dashboard. The invoice integrates seemlessly with a "Pay Now" button that offers direct debit, wires, ACH, Visa, Mastercard, Paypal and Alternate Payments |
| 3. E-Commerce: | E-Commerce caters for a combination of one-time and repeat users. Buyers can make one-off purchases without having to register or sign-in.
The checkout integrates seemlessly with a "Pay Now" button that offers direct debit, wires, ACH, Visa, Mastercard, Paypal and Alternate Payments. For repeat customers there is an option to register, access a dashboard with historical transactions, invoicing and the same flow as Client Orders |
| 4. Purchase Orders: | When Purchase Orders are raised the system applies a
4-eyes approach, whereby an independent person
must authorise each Purchase Order before any orders are placed. This protects against a number of risks,
such as over-ordering, as well as internal fraud.
Supplier products, spare parts, services and pricing are already in the system. When you place a Purchase Order, a Shadow Invoice appears instantly in your dashboard allowing you to cross-check against the Supplier's invoice and query any differences. The system also applies a 4-eyes approach to all out-going payments, whereby an independent person must authorise each payment request before any payment is made. This internal control protects against material risks, such as internal fraud. Each Shadow Invoice integrates seemlessly with a "Pay Now" button, thus enabling Supplier payment |
| 5. Accounting Integration: | For those taking our accounting functionality, once payment has been confirmed, ledgers, accounts payable and accounts receivables are automatically updated to reflect the new transactions |
| 6. Adaptive Subscriptions: | Once our contract is signed a monthly invoice will appear automatically in your dashboard, with a "Pay Now" button. You can also automate monthly subscriptions, with one-time set-up with the right to view, edit or cancel as required |
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