Artificial Intelligence (AI) is a double-edged sword, driving both efficiency and sophisticated fraud. While AI boosts productivity, its use by bad actors to create scaled, multi-layered fraudulent communications and websites poses an escalating threat. The digitization of B2B transactions has created new vulnerabilities, meaning businesses must immediately strengthen their defenses to combat this automated, rapidly evolving fraud landscape.
The AI conversation shouldn’t stop at benefits. In this article by Brandon Spear, CEO of TreviPay, he urges businesses to also address the risk of increased fraud and cyberattacks
In our work and personal lives, we’re grappling with what Artificial Intelligence (AI) can, and cannot, do for us. Most discussions focus on how AI might boost our day-to-day productivity. But we also need to address how it’s becoming a powerful tool for fraudsters and those intent on deception.
This reality, and the scale of the issue, underscores the need for businesses to strengthen their defenses. Fraudsters, for example, are creating websites that appear legitimate but contain hidden “junk” beyond the initial layers—a tactic known as website spoofing. With AI, these sites are becoming more sophisticated, spanning multiple layers of pages, subpages, and redirects, while appearing authentic to users.
There is a real risk of a cycle in which advancements in fraud prevention are met with more sophisticated tactics from fraudsters. In many ways, our success has created new challenges: the digitization of B2B transactions has brought significant benefits in transparency and convenience, but it has also introduced vulnerabilities that cybercriminals can exploit if businesses aren’t vigilant.
Addressing the AI-driven fraud challenge
With the shift to cloud technologies and digital B2B business suites, businesses face a more complex threat landscape. The centralization of data in cloud systems makes it easier for attackers to target multiple endpoints, amplifying the potential impact of any successful breach.
And as everything moves into digital, it’s possible to generate large volumes of fake data. AI can create convincing malware and fraudulent communications at scale—a shift from traditional fraud methods, which required manual effort and technical expertise. Tasks like hacking and phishing can now be outsourced to AI.
Phishing has, for instance, experienced an AI-driven “boom.” Sophisticated attacks can be created with ease, leveraging emotional triggers to manipulate individuals. Unlike consumer-focused scams, B2B fraud targets employees with access to financial systems or sensitive data. These attacks are personalized and appear legitimate, and AI makes it easier to research targets online and generate convincing pretexts—essentially automating tasks that once required significant manual effort.
The challenge in B2B payments is significant, as fraudsters can generate convincing fake invoices, purchase orders, or payment instructions that mimic legitimate communications. These AI-generated documents are difficult to distinguish from authentic ones, particularly in organizations with high transaction volumes or complex approval workflows.
It’s important to note B2B fraud often doesn’t involve direct payment theft. More commonly, it takes the form of identity deception, where a fraudster impersonates a legitimate business to secure a line of credit, such as ordering thousands of dollars’ worth of laptops, before disappearing with the merchandise. These stolen goods frequently later appear on resale platforms like eBay.
Why organizations need more than ERP
The order-to-cash (O2C) cycle in B2B transactions contains points of vulnerability. Each stage, from invoice creation to payment processing, requires careful attention to minimize any risk.
Traditional ERP systems often lack the advanced fraud-detection capabilities needed to address these evolving threats. After all, they were designed for an era when employee access was trusted and processes ran smoothly, before AI-assisted fraud became a factor. Today, disputes, late payments, AI-driven attacks, and workflow challenges such as reconciliation gaps may create openings for fraudulent activity these systems simply weren’t designed to address.
The rapid pace of AI-enabled fraud makes swift detection and response critical. Real-time monitoring and analysis powered by AI are essential elements of effective fraud prevention. This requires security teams to continuously analyze transaction data, spot anomalies, and flag suspicious activity for immediate review.
Making protection a reality
Addressing these challenges requires not only sophisticated technology but also efficient processes for investigation and response. Partnering with fraud-prevention experts is equally crucial. A composable approach, where businesses outsource specific functions to specialized organizations, can further strengthen security while allowing companies to focus on their core competencies. For instance, collaborating with third-party experts for real-time decision-making and credit risk assessment can greatly reduce the likelihood of fraudulent activities slipping through the cracks.
Adopting strong identity verification measures is a critical defense against AI-driven fraud. Rigorous checks, such as payment card validation and address verification, should be applied to every transaction. Adding multifactor authentication (MFA) strengthens security by making it harder for bad actors to gain unauthorized access. In addition, continuous, round-the-clock monitoring of accounts and transactions enables businesses to detect suspicious activity in real time and respond immediately to prevent potential losses.
Our enterprise payment solution customers are turning the tables on cybercriminals by leveraging AI to their advantage. Organizations are deploying AI to validate the authenticity of invoices, purchase orders, and payment instructions before processing. Advanced B2B payment platforms also strengthen security by ensuring every stage of the procurement and payment process is auditable, well-documented, and fully traceable—fostering accountability and making unauthorized changes easier to detect.
Look to balancing safety and speed of execution
A central challenge in addressing AI-enabled fraud is preserving operational efficiency while putting effective security measures in place. Safeguards must protect organizations without adding unnecessary friction to legitimate transactions. Striking the right balance between security, usability, and cost-effectiveness is therefore critical to maintaining both strong protection and a seamless customer experience.
At TreviPay, we are actively strengthening our defenses, including supplementing data sources to more effectively detect fraudulent applications. With the right preparation, investment, and processes—particularly through adopting advanced technologies, partnering with fraud-prevention experts, and implementing robust identity verification—businesses can stay one step ahead of fraudsters as AI capabilities evolve.
With diligence and the right tools, bad actors have little chance of success.
