Detecting T&E Fraud with Pattern Matching: Beyond Rules-Based Engines
Catching the sophisticated fraud that simple rules miss.
Travel and Expense (T&E) fraud is a persistent leak in corporate finances. For years, companies have relied on rules-based engines to catch bad actors. 'Flag any dinner over $100.' 'Reject duplicate receipt numbers.' While these rules catch simple errors, they are easily circumvented by employees who know the limits.
Rules are binary. A receipt is either over the limit or under it. Fraudsters learn these boundaries quickly. They split a $200 dinner into two $100 transactions. This is where 'structured' fraud thrives—actions that follow the letter of the law but violate its spirit.
AI Pattern Matching
ChatFin utilizes advanced pattern matching to identify anomalies that rules miss. Instead of checking a single receipt against a policy limit, the AI analyzes the entire history of an employee's spending behavior and compares it against peer groups.
For instance, if a sales representative consistently expenses dinners on weekends while their peers only expense on weekdays, the AI flags this as a behavioral anomaly. It recognizes patterns of 'lifestyle spending'—personal expenses disguised as business costs—that a simple dollar-limit rule would ignore.
Cross-Referencing Data Sources
The power of AI lies in its ability to connect disparate data points. A rules engine looks at the expense report. ChatFin looks at the expense report, the corporate card feed, the calendar, and even the CRM.
If an employee submits a receipt for a 'Client Dinner,' the agent can cross-reference the CRM to see if a meeting with that client was actually scheduled. If the calendar shows the employee was on holiday, or if the CRM shows the client is inactive, the claim is flagged.
Computer Vision and Receipt Analysis
Modern fraud often involves manipulated receipts. Employees might use software to alter the date or amount on a PDF receipt. Human reviewers rarely catch these subtle edits. Computer Vision models, however, can detect digital alterations, font inconsistencies, and mismatched metadata.
ChatFin scans every uploaded document not just for the text, but for the integrity of the file itself. It can identify if a receipt has been submitted previously by a different employee, stamping out schemes where colleagues share receipts.
Proactive Policy Enforcement
The goal is not just to catch fraud but to prevent it. AI pattern matching creates a culture of compliance. When employees know that an intelligent system is reviewing every claim against a complex web of data, the temptation to game the system decreases.
ChatFin provides the modern controller with the eyes and ears needed to secure company cash, moving T&E auditing from a sampling exercise to 100% coverage.
Stop the Leakage
Deploy ChatFin's AI auditor to protect your T&E spend today.