Their knowledge & experience can navigate the “siege of fakery” in the digital age
The rise of emergent technologies such as AI and sophisticated fake apps present a significant challenge to the accountancy industry – which can feel like it’s under a siege of fakery.
This complex new environment, born from a convergence of online transactions, automated payment systems and the emergence of generative AI requires heightened vigilance.
This is why accountants are uniquely positioned to act as crucial guardians for businesses, advising, implementing controls and staying ahead of evolving threats.
Over 7.7 million cyber crimes were committed against businesses in the UK in the last financial year – this total is around half of all UK businesses which underlines how this serious problem is already growing in different ways.
Fake banking apps
One of the most immediate areas where accountants can provide vital guidance in combating scams involving fake banking apps. Fraudsters use apps during in-person transactions, particularly in social media marketplace sales, to falsely indicate payment has been made.
The fake app is displayed, often visually indistinguishable from the genuine version, and has the intended victim enter details into it before leaving with goods without transferring funds.
Accountants advising small business clients have a critical role in ensuring that they don’t exchange any goods until the funds are confirmed in their own account – and never accept the buyer’s app payment confirmation as proof.
Generative AI
The rise and scope of AI is increasing exponentially but bringing with it an escalation in the sophistication of fraudulent documents.
The newest image generators for ChatGPT and Google Gemini can create highly convincing fake receipts. These include realistic logos, creases, stains, real barcodes and details matching diaries and expense software. Criminals who once needed graphic design skills now only need a subscription.
Accountants and their clients have to be attentive to this emerging risk that some claims, while appearing convincing at first pass, may be fraudulent. Another risk accountants need to be aware of is criminals impersonating employees to submit claims.
Having strong checks on anomalous expenses, checks with vendors and adherence to controls will help shore up any weaknesses.
Invoice Fraud
A growing concern that’s being exacerbated by AI is invoice fraud. While not created by AI, the ease of generating fraudulent invoices using AI makes the issue more pronounced. One spend management provider found that a third of all businesses fell victim to invoice fraud in 2024 noting that firms without automated matching tools were the most susceptible.
Accountants can play an absolutely critical role here by advising businesses on implementing or improving automated matching of invoices to orders, contracts and vendor payments.
The increased prevalence of fraudulent documentation including invoices, receipts, communications and payment confirmations adds increasing complexity to existing checks and compounds ongoing issues such as late payments which already affect a majority of firms.
Companies should expect increased delays in transactions as checking becomes more specific and challenging but accountants, through necessity, will be on the front line bringing their expert oversight and professional judgement to full use while reliable and robust counter-fraud tools are developed and deployed.
Accountants can be essential conduits for understanding and implementing improved procedures to protect their clients. By leveraging resources such as the Cyber Governance Code of Practice which provide comprehensive free resources for directors to enhance their own knowledge and confidence around cyber crime.
They can also help their clients prepare for upcoming legal changes outlined in the upcoming Cyber Security and Resilience Bill which will improve the security and regulation of critical infrastructure and supply chains.
Awareness of developments like the Home Office consultation on ransomware payments will help accountants increase their own knowledge base.
While the digital revolution presents many opportunities, the new technologies also bring a higher degree of risk – especially to businesses and directors who are under-informed or unaware of the potential dangers waiting for them.
Accountants can become defensive lynchpins in this area by marrying their expertise in financial controls, diligence in verifying transactions and documentation and understanding of emerging technologies and scams associated with them.
Being able to proactively advise on the new kinds of financial crime and increasing business vulnerabilities they rely on will help build more resilient clients and create another layer of client satisfaction.