ACCOUNTS PAYABLE · FRAUD DETECTION & CONTROLS

Are There Suspicious Payment Patterns?

AI analyzes payment patterns, invoice documents, and vendor data 24/7. Flags statistical anomalies, duplicate vendors, altered documents, and suspicious behaviors that warrant investigation.

24/7
Control Monitoring
5%
Fraud Rate (Industry Avg)
100%
Transactions Tested

What TieStream Can Detect

Using only bank transactions, accounting data, and invoice documents, TieStream identifies suspicious patterns and control weaknesses that warrant investigation.

1. Duplicate Vendor Detection

What it tests: Are there multiple vendor records for the same entity?

Detects:

  • • Same bank account number used by multiple vendor names
  • • Similar vendor names (ABC Inc, ABC Incorporated, ABC Corp)
  • • Same address for multiple vendors
  • • Duplicate tax IDs under different names

2. Payment Pattern Analysis

What it tests: Do payment patterns suggest manipulation?

Detects:

  • • Consistent just-below-threshold amounts ($9,950 when limit is $10,000)
  • • Round-dollar payments (exactly $5,000.00 - statistical red flag)
  • • Unusual payment frequency (same vendor paid multiple times per day)
  • • Weekend/holiday payments (when oversight is typically reduced)
  • • Sequential invoice numbers from supposedly unrelated vendors

3. Statistical Fraud Indicators

What it tests: Do payment amounts follow expected statistical patterns?

Detects:

  • • Benford's Law violations (first-digit distribution anomalies)
  • • Suspiciously high rate of round-dollar amounts
  • • Clustering of amounts just below approval thresholds
  • • Unusual variance in payment amounts to same vendor

4. Invoice Document Analysis

What it tests: Are invoice documents authentic and unaltered?

Detects:

  • • PDF metadata anomalies (created/modified timestamps don't match invoice date)
  • • Font inconsistencies within document
  • • Image quality differences (suggesting cut-and-paste alterations)
  • • Multiple document versions of same invoice with different amounts

5. Transaction Timing Anomalies

What it tests: When are transactions processed?

Detects:

  • • Payments processed during unusual hours (2am, weekends)
  • • Rapid processing (invoice to payment in < 24 hours without approval)
  • • Payment before invoice date
  • • Clusters of suspicious transactions during known low-oversight periods

6. Missing Documentation Patterns

What it tests: Are required documents present?

Detects:

  • • Payments without matching invoice
  • • Invoices without matching PO (when POs required by policy)
  • • Missing vendor W-9/tax documentation
  • • Incomplete vendor records (no bank details, address, contact)

Suspicious Patterns TieStream Flags

These are real patterns that warrant investigation. TieStream doesn't prove fraud—it identifies red flags that need human review.

🚩 Duplicate Vendor Pattern

Pattern: Multiple vendor records with similar characteristics but different names.

TieStream flags:

  • • "ABC Consulting Inc" and "ABC Consulting LLC" have same bank account
  • • Both vendors created by same user on same day
  • • Payments alternate between the two names
  • • Combined payments total $45K over 3 months

What it could indicate: Splitting payments to avoid approval thresholds, or legitimate vendor name change that needs cleanup.

🚩 Invoice Alteration Pattern

Pattern: Invoice document shows signs of modification.

TieStream flags:

  • • PDF created January 15, but modified February 3 (same day it was submitted)
  • • Amount field uses different font than rest of document
  • • Invoice total is $5,500 but PO was for $5,000
  • • This vendor's other 47 invoices all match PO amounts exactly

What it could indicate: Invoice tampering, or vendor correcting a billing error (needs verification).

🚩 Just-Below-Threshold Pattern

Pattern: Payments consistently just under approval limit.

TieStream flags:

  • • Approval threshold: $10,000 requires VP approval
  • • Same vendor: 8 payments in 2 months
  • • Amounts: $9,950, $9,900, $9,975, $9,925, $9,850, $9,900, $9,950, $9,900
  • • All approved by same manager (no VP review)
  • • Total: $79,350 (would normally require VP for this aggregate amount)

What it could indicate: Intentional splitting to avoid oversight, or coincidental timing of legitimate purchases.

🚩 Round-Dollar Pattern

Pattern: Unusual frequency of exact round-dollar amounts.

TieStream flags:

  • • Vendor "Professional Services Group" paid 12 times this year
  • • All amounts exactly round: $5,000.00, $3,000.00, $7,500.00, $4,000.00...
  • • No invoices with detail—just says "Consulting services rendered"
  • • Statistical analysis: 98% confidence this pattern is anomalous

What it could indicate: Shell company / fake vendor fraud, or legitimate retainer-based services billed monthly.

🚩 Weekend Payment Pattern

Pattern: Payments processed during unusual times when oversight is weak.

TieStream flags:

  • • 15 payments processed on Saturday/Sunday over 6 months
  • • All to different vendors but created by same user account
  • • Normal business operations are Monday-Friday only
  • • No other employees have weekend payment activity

What it could indicate: Exploiting reduced oversight periods, or legitimate catch-up work by dedicated employee.

🚩 Same Bank Account Pattern

Pattern: Multiple vendors share same bank account.

TieStream flags:

  • • Bank account ending in 4729 used by 3 vendors:
  • • "Office Supplies Pro", "IT Services Group", "Facilities Management Co"
  • • Vendors supposedly provide completely different services
  • • All three created within 2-week period
  • • Combined payments: $127,000 over 4 months

What it could indicate: Shell companies set up to split payments, or subsidiaries of same parent company (needs verification).

How Pattern Analysis Works

1

Data Ingestion

AI extracts data from bank transactions, accounting software (invoices, POs, vendor records, GL entries), and invoice documents. Builds complete picture of payment patterns and vendor relationships.

2

Statistical Analysis

Applies multiple analytical techniques: Benford's Law, threshold clustering, round-dollar frequency, payment timing patterns, vendor relationship mapping.

Analyzing Vendor "ABC Services"...
✓ 47 payments, total $234K over 12 months
✓ Normal payment amounts (varied, not round)
⚠️ Bank account shared with "XYZ Consulting"
⚠️ Both vendors created same day by same user
→ PATTERN ANOMALY: Medium risk - Flagged for review
3

Document Forensics

Analyzes invoice PDFs for metadata anomalies, font inconsistencies, modification timestamps, and image quality variations that suggest alteration.

4

Risk Scoring & Alerts

Each anomaly gets a risk score based on severity and frequency. High-risk patterns trigger immediate alerts. Medium-risk patterns queued for periodic review.

⚠️ Suspicious Pattern Detected
Vendor: "Professional Services Group"
Pattern: 12 payments, all exact round dollars ($5K, $3K, $7.5K...)
Risk Score: 78/100 (High)
Recommendation: Investigate vendor legitimacy, review service documentation, verify business registration
5

Human Investigation

AI provides the evidence and risk assessment. You investigate the flagged patterns with your team to determine if they represent fraud, policy violations, or legitimate business activity that needs clarification.

The Cost of Weak AP Controls

Association of Certified Fraud Examiners (ACFE) Data

Organizations experiencing fraud (annually)42%
Median loss per fraud case$117,000
Billing/invoice fraud (% of cases)20%
Time to detect fraud (median)12 months
Organizations with automated controls58% less loss

TieStream detects fraud patterns in real-time, before payments process. Typical detection time: 0-3 days.

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