The tools of the would-be expenses fraudster used to be pretty low-tech: a photocopier and a bottle of correction fluid; a few blank taxi receipts supplied by an obliging cabbie. These days, things have become both more sophisticated, and simpler. As the Financial Times reported this week, the advent of image-generating artificial intelligence has led to an influx of AI-produced fake receipts that are fuelling expenses fraud. They come complete with authentic-looking logos, addresses and line items, even simulated creases and coffee stains.
Much attention has been paid to the potential for elaborate AI-generated deepfakes — manipulated videos or audio that can, say, put fake words in the mouths of well-known figures — to be used for political dirty tricks or financial scams. But the “democratisation of deception” can also facilitate more basic forms of fraud.
Convincing forgeries that once required graphic design or photo editing skills and access to appropriate software can now be created by AI using only text prompts. This is a big issue for companies trying to keep a lid on expenses fraud. By eroding trust in documentary evidence and paper trails, it also has potentially broader implications for financial trust.