EXHIBIT 101 / THE HANDBOOK
EXHIBIT#37HIGH
Inventory & ProcurementComposite score: 68/100

Accounts Payable Fraud

A spoofed email requests a vendor's banking details be updated — no callback verification, and the next legitimate payment vanishes into an attacker's account.

Risk Scores

Frequency50
Financial Loss80
Detection Difficulty70
Prevention Ease70
Composite Score68/100

Perpetrator Roles

Accounting

Affected Formats

Fine Dine-inQSR

Detection Difficulty

Moderately difficult. Requires consistent audit procedures and data analysis to surface.

HOW IT WORKS
Supplier and buyer collude
Inflated invoices submitted
Payments approved
Kickback split privately
Costs absorbed by business
Handbook Chapter · F-037

Supplier-Employee Collusion

Full chapter with identity card, real examples, warning signs, detection and prevention guidance.

Exhibit AI Detection

AI-Powered Detection Design

Require a callback to verify any banking-detail change, using contact information already on file — never information provided in the request itself.

Prevention Guidance

Audit Controls

Standard audit procedures are effective. Regular cash counts and reconciliation catch this scheme early.

Technology

Automated POS monitoring, real-time exception reporting, and AI-driven anomaly detection significantly reduce exposure.

Culture & Training

Staff awareness programs, anonymous reporting channels, and clear consequence policies deter opportunistic fraud.

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