Employees using AI to scam their bosses
In this DML Report…
Workers are using AI image generation tools from Google and OpenAI to fabricate phony expense receipts and defraud employers, with AI-generated fakes now comprising 14 percent of all fraudulent documents submitted last month—zero the year prior—according to software provider AppZen. Fintech firm Ramp reported flagging over $1 million in fraudulent invoices within 90 days, including spoofed invoices, fake vendors, and altered bank details enabled by sophisticated AI. The Financial Times first detailed the surge, prompting FOX Business to contact Google and OpenAI, which did not respond.
AppZen's data confirms the rapid rise: no AI receipts detected last year, but 14 percent of fraud last month stemmed from tools producing near-perfect replicas. Ramp noted AI attacks are increasingly difficult to catch as models advance, targeting expense reimbursements through fabricated business costs.
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Trial attorney and legal analyst Misty Marris stated to FOX Business: "If it is confirmed that an employee is submitting fake receipts for the purpose of being reimbursed fabricated business expenses, that would absolutely be a valid for-cause termination." Consequences extend beyond firing to civil and criminal liability: "Intentionally fabricating receipts for the purpose of self enrichment could be theft or fraud... [or] wire fraud, bank fraud," potentially escalating to felonies based on amounts and jurisdiction.