Accounts Receivable Fraud: How B2B Payment Portals Are Being Exploited by Scammers

Accounts Receivable fraud has become one of the fastest-growing risks for businesses that rely on B2B transactions. As payment portals become the standard for invoices and collections, fraudsters have found new ways to exploit vulnerabilities in financial systems. CFOs and accounts teams are now facing threats not just from late payments, but from cybercriminals who target the very core of their revenue cycle.

AR creates a dangerous reality: when your accounts receivable is at risk, your entire cash flow suffers. Fraudulent invoices, fake vendors, and compromised payment portals can result in revenue leaks that remain undetected for months.

The solution? Businesses must adopt secure B2B transaction strategies and partner with experts like NCRi, which specializes in protecting companies from AR fraud while ensuring smooth collections.

What is Accounts Receivable Fraud?

Accounts Receivable fraud happens when scammers manipulate payment processes to divert funds, create false invoices, or exploit weak internal controls. Unlike external scams such as phishing emails, AR fraud often looks legitimate, making it harder for finance teams to detect.

Fraudsters typically gain access to B2B payment portals, posing as clients or vendors. Once inside, they can reroute payments or submit fake invoices that slip through routine checks. For companies, this means financial loss, reputational damage, and weakened trust in their payment systems.

Why AR Fraud is Rising?

The shift to digital payments has accelerated fraud attempts. Cybercriminals see AR portals as easy entry points since many companies prioritize speed over security. A 2024 PwC survey revealed that nearly 50% of organizations reported experiencing fraud in the last two years, with financial fraud leading the pack.

Common Targets for Scammers

Small and mid-sized businesses with limited fraud detection tools
Global companies managing cross-border payments
Accounts teams with outdated verification systems

The Role of Human Error

Many AR fraud cases succeed due to small mistakes, such as approving an invoice without verification, skipping a vendor check, or overlooking unusual payment activity. This highlights why secure systems and expert oversight are essential.

Types of Fraud in Accounts Receivable

The fraud types in the receivables can be classified into those that are perpetrated by parties operating out of the organization and those perpetrated by individuals who are employed by the company. We should have a closer look at both forms of fraud:

External party frauds:

Types of fraud done by an external party are mentioned below.

Credit card fraud: Fraudsters can use stolen credit card details to make unauthorized transactions or make counterfeit credit cards to make fraudulent payments.
Cheque fraud: It is associated with the production of fake cheques or forging genuine cheques to commit illegal payments.
Kitting and lapping schemes: Accounts receivable lapping schemes are schemes that scammers employ to alter the A/R records to conceal inconsistencies that have been caused by bounced checks or stolen receivable payments.
Email phishing: Fraudsters use phishing to impersonate legitimate customers to commit unauthorized purchases or transactions.
Reseller and storefront fraud: Unauthorized resellers or warehouses can buy in large quantities and resell the goods without the permission of the company.
Third-party skimming: Accounts receivable skimming is a type of fraud that illegally diverts funds, usually through underreporting income, to embezzle the money without detection.

Internal frauds:

Types of fraud done by an internal party are mentioned below.

Fraud write-offs: Employees can conceal theft or misappropriation by falsifying customer accounts.
Unauthorized selling: Like external fraud, internal staff may sell products without the authorization of the company, which undermines integrity.
Phishing of customer data: Employees may violate confidentiality, gain and misuse customer information, and open themselves up to fraud, as well as undermine customer trust.

Such external and internal frauds have the potential to severely interfere with the order-to-cash cycle and undermine the financial and reputational integrity of an enterprise. It is with this knowledge that we proceed to look at the ways to effectively identify these fraudulent activities, which is a very important step in protecting your A/R processes.

How to Detect AR Fraud?

Detecting AR fraud requires vigilance, technology, and structured financial oversight. While fraudsters are becoming more sophisticated, early detection can save millions in lost revenue.

NCRi’s Fraud Monitoring Support

NCRi provides fraud detection support that goes beyond technology. By combining automation with expert analysts, they help businesses catch anomalies early, ensuring AR fraud doesn’t compromise collections or client trust.

7 Ways to Prevent AR Fraud

Fraud prevention requires a layered approach that blends technology, process, and expertise. Here are seven proven strategies CFOs and accounts teams can use.

Adopt new technology: Use banking and data analytics to develop a strong line of defence against fraud. Such tools are able to examine the pattern of transactions and raise red flags to identify anomalies in order to detect potential fraud at an early stage.
Use merchant processor tools: Work with your merchant processor to maximize their fraud detection services. These tools are frequently included in an integrated Cash Management Services offered by banks and may be instrumental in detecting and deterring fraud.
Establish relationships with banks: Develop a good relationship with your banking partners. Fraud may affect businesses and banks alike, and thus, a combined effort at the start can create a strong line of defence against fraud.
Integrate machine learning and analytics: Implement machine learning and data analytics in daily A/R operations. Such integration can strengthen the capacity to scan, identify, and thwart fraudulent actions by offering real-time tracking and a profound understanding of transactional information and customer conduct.
Minimize false positives: A good system of fraud prevention must not only identify fraud but also minimize false positives. This equilibrium is essential to a good customer experience and security.
Ongoing education and training: Educate your A/R team on the newest fraud techniques and the use of anti-fraud tools regularly. Maintaining the team alert and aware is one of the main lines of defence.

Periodically review and revise policies: Fraudsters are fast learners, so your anti-fraud policies should keep up with them. Periodically revise and renew your policies and tools to keep up with fraudsters.

Partner with Experts like NCRi.

NCRi specializes in protecting businesses from B2B payment fraud. They help organizations implement security-first AR processes, conduct audits, and create monitoring systems that align with global best practices.

Additional Best Practices:

Train employees to spot phishing attempts
Update vendor information regularly
Surprise audits on AR transactions

Why Accounts Receivable at Risk is a Global Concern

Fraud in AR isn’t limited to one industry or geography. It’s a global business threat that touches every company handling digital payments.

Cross-Border Challenges

International payments create multiple opportunities for fraud. Currency exchanges, varying regulations, and different banking systems make oversight complex.

Reputational Damage

Clients lose confidence when a company falls victim to AR fraud. Rebuilding trust is far harder than protecting it in the first place.

The Growing Role of Compliance

Governments worldwide are tightening regulations around financial fraud. Companies that fail to secure their AR systems may face not just financial losses but also regulatory penalties. NCRi. helps global businesses remain compliant while minimizing fraud risks.

Conclusion

Accounts Receivable at Risk is more than just a financial threat; it’s a growing global crisis. Fraudsters are exploiting B2B payment portals with tactics like invoice fraud, ghost vendors, and payment diversion. For CFOs, this means that ignoring AR fraud is no longer an option.

The good news is that businesses don’t have to face this challenge alone. By strengthening internal controls, adopting secure payment systems, and partnering with experts like NCRi, companies can protect cash flow, client trust, and long-term growth. NCRi’s expertise ensures that fraud is detected early, prevented effectively, and managed in line with global standards. Ready to secure your B2B transactions and protect your Accounts Receivable from fraud?
Connect with NCRi today and safeguard your revenue cycle before it’s too late.

Accounts Receivable at Risk: How B2B Payment Portals Are Being Exploited by Scammers