AP Fraud Detection

Overview

Every invoice submitted through SKOOR is automatically scored for fraud risk. The system runs six checks in parallel and returns a composite risk score (0–100) with specific risk factors and a recommendation: approve, review, or hold. High-risk invoices are automatically held for human review. You decide what to release.

Available on all plans. Fraud checks run automatically on every invoice. No configuration required.

What Makes SKOOR Different

Most expense platforms flag duplicates and call it fraud detection. SKOOR goes deeper with two specialized AI agents:

• SAMUEL— OFAC/SDN compliance screening on every vendor. Catches sanctioned entities before you pay them. No other SMB tool does this.
• EZRA— Behavioral fraud analysis. Detects velocity abuse, split structuring, amount anomalies, and suspicious patterns across your entire vendor portfolio.

This is enterprise-grade compliance infrastructure at the SMB price point. The same technology used by payment processors, available in your SKOOR dashboard.

Six Fraud Checks on Every Invoice

1. Duplicate Invoice Detection

Flags invoices with the same vendor and amount within a 30-day window, or the same invoice number from any vendor. Catches accidental double-submissions and intentional re-billing.

2. Amount Anomaly Detection

Calculates the historical average for each vendor and flags invoices that deviate by more than 3 standard deviations. Also flags first-time vendors submitting invoices over $5,000 — new vendor + large amount = elevated risk.

3. Velocity and Structuring Detection

Catches vendors who submit multiple invoices just under reporting thresholds. If three or more invoices from the same vendor total over $10,000 within 24 hours but each is under $10,000 individually, SKOOR flags it as potential structuring.

4. New Vendor Risk Assessment

Vendors with fewer than three historical invoices carry an elevated baseline risk. This isn't a red flag — it's context. Combined with other factors, it helps distinguish legitimate new relationships from suspicious ones.

5. Round Amount Detection

Invoices for exact round numbers ($5,000.00, $10,000.00) above $1,000 carry a small risk premium. Legitimate invoices usually have specific amounts. Round numbers are more common in fabricated invoices.

6. OFAC/SDN Compliance Screening

SAMUEL screens the vendor name and address against the OFAC Specially Designated Nationals list and other sanctions databases. An OFAC match carries the highest risk severity (95/100) and triggers an automatic hold.

Risk Scoring and Recommendations

Every fraud check is logged with the full risk factor breakdown: what was checked, what was found, and the evidence. This audit trail is available in your dashboard and exportable as CSV.

How It Works

1. Submit an invoice— via upload, email, or API. SKOOR extracts vendor name, amount, and invoice number.
2. Automatic fraud check— all six checks run in parallel. Takes less than 2 seconds.
3. Risk score calculated— individual factor severities combine into a composite 0–100 score.
4. Recommendation surfaced— approve, review, or hold. High-risk invoices are automatically held.
5. Human decides— held invoices require manual release. You see the full risk breakdown before deciding.
6. Audit trail logged— every check, every factor, every decision. Exportable for compliance.

Frequently Asked Questions

Will legitimate invoices get blocked?

SKOOR targets a false positive rate below 10%. Low-risk invoices (score under 30) are never held. The system learns from your vendor history — the more you use it, the more accurate it gets.

Can I release a held invoice?

Yes. Every held invoice has a “Release” button in your dashboard. Releases are logged with who approved and when.

Does this work with vendors outside the US?

SAMUEL screens against global sanctions lists including OFAC/SDN, not just US entities. International vendor invoices receive the same six-check treatment.

Is there a per-check cost?

No. Fraud checks are included in all plans — Free, Plus, and Enterprise. Unlimited checks, no per-invoice fees.

How is this different from what QuickBooks or Xero offers?

QuickBooks and Xero don't offer invoice fraud detection. SKOOR combines OFAC compliance screening (SAMUEL) with behavioral pattern analysis (EZRA) — the same infrastructure used by payment processors, built into your expense management tool.

Key Capabilities

• Six-check fraud analysis on every invoice in under 2 seconds
• Composite risk scoring (0–100) with factor breakdown
• OFAC/SDN vendor screening via SAMUEL
• Split structuring and velocity detection via EZRA
• Auto-hold for high-risk invoices with manual release workflow
• Full audit trail exportable as CSV
• Real-time fraud detection stats in your dashboard
• Included on all plans — no per-check fees