Executive Summary
Recovery audits not only help companies recover lost payments but also serve as tools to detect and prevent fraud by identifying risks early. Leveraging AI and data analytics, these audits reveal subtle irregularities and fraud risks that might otherwise go unnoticed, enabling proactive fraud prevention and stronger financial controls.
- Overpayments reveal fraud risks: Duplicate or erroneous payments can signal issues such as phantom vendors or manipulated invoices, highlighting the importance of investigating beyond the surface.
- AI enhances fraud detection: PRGX uses data-driven methods including statistical techniques like Benford’s Law to identify anomalies in invoices and vendor data, tailoring detection to industry-specific risks.
- Simple controls reduce risk: Implementing measures such as secure supplier portals, closing stale purchase orders, cross-checking supplier and employee data, and requiring dual approvals can strengthen fraud prevention.
- Audits build confidence: Beyond recovering funds, third-party profit recovery audits provide clarity, control, and preparedness, helping organizations protect their assets and operate with greater assurance.
Is your finance team feeling even more pressure than ever these days? Between managing tight margins, navigating complex supplier networks, and keeping up with evolving technologies, it’s easy to see how things like overpayments or duplicate payments can slip through the cracks.
At PRGX, we’ve built our reputation on helping companies recover those lost dollars through our tech-enabled AP Profit Recovery solution. But here’s what we’ve learned from analyzing thousands of transactions: those same audits that help you find money can also help you find something even more valuable—risk signals that point to fraud before it scales.
Every Overpayment Tells a Story
When we uncover a duplicate payment, it’s not just a win for the bottom line. It’s a clue. Was it a simple mistake? Or could it be a sign of something more troubling—like a phantom vendor, a manipulated invoice, or a stale PO that someone quietly exploited?
Fraud isn’t always dramatic. It’s often subtle, hiding in the noise of everyday transactions. And while the word “fraud” can feel heavy, the reality is that it’s more common than most of us would like to admit. Industry experts estimate that companies lose around 5% of their annual revenue to fraud. That’s not just a statistic—it’s a wake-up call.
From Clean-Up to Prevention: The Role of AI, Data, and Real-Time Detection
We’ve talked before about how AI and machine learning are transforming procurement and finance. In our blog, “Source, Streamline, Save: The Future of Procurement with AI and ML,” we explored how these technologies are helping teams work smarter. But they’re also helping us see smarter.
At PRGX, we support fraud detection with a data-driven approach that goes beyond surface-level anomalies. Our platform uses statistical techniques like Benford’s Law to flag irregularities in invoice numbers, amounts, and frequency—patterns that often go unnoticed in manual reviews. These aren’t just red flags—they’re early signals that something might be off.
We also help clients identify overlaps in vendor and employee master files—like shared contact details or bank account numbers—that could indicate insider fraud. And because every industry has its own unique risks, we customize our detection logic to focus on the exceptions that matter most to your business.
This isn’t about fear—it’s about foresight. It’s about giving your team the tools to ask better questions, sooner.
Building Stronger, Safer Processes
Fraud prevention doesn’t have to mean suspicion or fear. It can mean clarity. Confidence. Control.
Some of the most effective ways to reduce risk are also the simplest:
– Use a supplier portal for secure, self-service invoice inquiries.
– Close out stale POs and inactive vendor records regularly.
– Cross-check supplier and employee data to catch potential conflicts.
– Require dual approvals for large payments—because a second set of eyes can make all the difference.
These are the kinds of controls we help our clients implement every day. Not because we expect the worst—but because we want them to be ready for anything.
A Quiet Kind of Confidence
At PRGX, we approach fraud detection with data, process expertise, and a deep respect for the trust our clients place in us.
As we shared in “Data and the Transformation of Recovery Audit Solutions,” the insights from a well-run audit can ripple out across your organization—from compliance to supplier strategy to risk management. Fraud prevention is just one more way we help you protect what matters.
Taking Action
Recovery audits represent more than cleaning up past mistakes. They’re your early warning system for future risks—by recognizing patterns others miss, asking questions others don’t, and building a more resilient business.
Every overpayment recovered is an opportunity to strengthen your defenses. Every anomaly detected is a chance to prevent larger losses. Every control implemented is a step toward greater confidence in your financial operations.
Ready to transform your recovery audits into proactive fraud prevention? Contact PRGX to learn how our AI-powered platform can help you see beyond the numbers and protect your organization from emerging risks.
