The rise of sophisticated AI image generation is enabling a new wave of expense report fraud, with employees creating convincing counterfeit receipts. Expense management firms are reporting a significant increase in AI-generated fraudulent submissions, jumping from zero in 2024 to 14% of all fraudulent documents by September 2025. This trend reflects a broader pattern of AI democratising fraud, making it easier to create convincing forgeries.
These AI-generated receipts often feature realistic details, such as wrinkled paper, accurate itemisation matching real menus and signatures, making them difficult to distinguish from genuine ones. Experts warn that traditional visual inspection is no longer sufficient, urging increased scrutiny of images and documents. The accessibility of AI tools means anyone can now create fake receipts in seconds, regardless of technical skill.
Financial professionals report an uptick in falsified receipts since the launch of advanced AI models. Fintech companies have flagged millions in fraudulent invoices, highlighting the growing challenge for businesses. As AI technology evolves, companies face increasingly sophisticated attacks, including spoofed invoices and fake vendors.
