---
title: "Fraud Prevention & Risk Management"
description: "Prevent duplicate payments, unauthorized spend, and vendor fraud with controls built into every transaction, before money moves."
canonical: https://www.fraxion.biz/solutions/fraud-prevention-risk-management
url: https://fraxion.getmd.ai/solutions/fraud-prevention-risk-management.md
last_converted: 2026-09-08T23:39:52.566Z
---

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Fraud prevention & risk management

# Catch fraud and errors before they cost you

Fraxion builds fraud prevention controls into the purchasing workflow:
segregation of duties, vendor approval, duplicate detection, and exception
alerts running across transactions. Because every purchase follows a governed
approval path with a complete record, the gaps that fraud and error depend on
are closed by design, not discovered in review.

[Book a demo](https://www.fraxion.biz/get-a-demo)

[Watch 2-min overview](https://www.fraxion.biz/javascript:postMessage({type:)

![Fraxion Apex advisor flagging a duplicate invoice for review](https://www.fraxion.biz/hubfs/website%20rebrand%202026/Fraud%20prevention%20and%20risk%20management/fraud-hero.webp)

## Trusted by mid-market finance teams

![City of Charlottetown](https://www.fraxion.biz/hs-fs/hubfs/website%20rebrand%202026/Procurement%20automation/image%2046.webp?width=138&height=84&name=image%2046.webp)

![The Hotchkiss School](https://www.fraxion.biz/hs-fs/hubfs/website%20rebrand%202026/Procurement%20automation/image%2045.webp?width=144&height=45&name=image%2045.webp)

![Mukuru](https://www.fraxion.biz/hs-fs/hubfs/website%20rebrand%202026/Financial%20Services/image%2041.webp?width=164&height=52&name=image%2041.webp)

![aTyr Pharma](https://www.fraxion.biz/hs-fs/hubfs/website%20rebrand%202026/Procurement%20automation/image%2042.webp?width=79&height=47&name=image%2042.webp)

![Cube Workspace](https://www.fraxion.biz/hs-fs/hubfs/website%20rebrand%202026/Procurement%20automation/image%2043.webp?width=149&height=26&name=image%2043.webp)

![Board of Healthcare Funders](https://www.fraxion.biz/hs-fs/hubfs/website%20rebrand%202026/Procurement%20automation/image%2048.webp?width=147&height=54&name=image%2048.webp)

![OSN](https://www.fraxion.biz/hs-fs/hubfs/website%20rebrand%202026/Procurement%20automation/image%2049.webp?width=73&height=48&name=image%2049.webp)

![Finance manager reviewing an Advisor Grade risk card](https://www.fraxion.biz/hubfs/website%20rebrand%202026/Fraud%20prevention%20and%20risk%20management/fraud-split-composite.webp)

The challenge

## Fraud risks grow when processes lack effective controls

A duplicate invoice slips through because matching is done manually. A vendor is added mid-process with no vetting. A manager approves their own purchase because no policy enforcement exists to prevent it. Individually these look like process noise; discovered months later in a reconciliation or an audit, they are incidents, with the money already spent and the exposure resting on finance. Manual controls depend on someone noticing, and as transaction volume grows, the gaps multiply and eventually, something gets through.

## How it works

### No single person with unchecked authority over spend

Segregation of duties is configurable to your organization's policy. When enabled, requesters cannot approve their own purchases, and approval authority is separated from receiving and payment processing. Applied automatically on every transaction, the separation ensures no single person can commit and clear spend unchecked.

### Every vendor vetted before they enter the workflow

New vendors are vetted and approved before any request can reference them, and vendor data is managed centrally. Any changes to vendor details are logged automatically, creating a complete audit trail of every edit, who made it, and when. Unvetted or fictitious vendors never enter the workflow, closing off one of the most common fraud paths.

### Duplicate and overpayment prevention

Every invoice is matched against the purchase order and goods receipt automatically. Duplicate submissions, price discrepancies, and quantity mismatches are flagged before invoice approval, so errors and risks are mitigated before payment.

### AI-assisted risk intelligence

Every purchase request and invoice is assessed automatically by Fraxion's AI-assisted advisors, analyzing patterns, identifying anomalies, and alerting you to risk indicators that manual review would miss. When something needs attention, your team receives a clear recommendation and the reasoning behind it, so decisions are made with confidence and full context. The AI flags and advises. Your team investigates, decides, and acts.

Risk management & auditability

## Catch risk before it becomes costly

Fraxion helps identify potential fraud, errors, and unusual spending before
they result in a payment. AI-powered risk advisors flag exceptions for your
finance team to review, while built-in controls help prevent unauthorized
purchases, overspending, and policy violations. Every transaction is captured
in a digital record, giving you a clear audit trail and the evidence you need
to demonstrate compliance and accountability.

![Fraxion approve work center on a laptop](https://www.fraxion.biz/hs-fs/hubfs/website%20rebrand%202026/Fraud%20prevention%20and%20risk%20management/fraud-laptop.webp?width=1240&height=632&name=fraud-laptop.webp)

## “It has been a major move forward for us since deploying Fraxion in
educating our staff that following the correct processes when requesting
approval to purchase goods and services is how we manage risk and protect
our organization.”

Elsabe G.

Admin Manager, Board of Healthcare Funders

Up to

## 80%

faster approval cycles with every decision recorded and traceable

## Invoices

checked before paymentfor duplicates and exceptions automatically

Up to

## 70%

less time spent on audit preparation

## See how Fraxion strengthens fraud prevention and compliance

[Book a demo](https://www.fraxion.biz/get-a-demo)

[View integrations](https://www.fraxion.biz/integrations)

## FAQs

### How does Fraxion prevent fraud in accounts payable and procurement?

Fraxion prevents fraud by building controls directly into the purchasing workflow — so the gaps that fraud depends on are closed structurally, not monitored manually. Segregation of duties can be configured to ensure no single person can request, approve, and pay for the same transaction. Vendor approval prevents unvetted or fictitious suppliers from entering the workflow. Automated three-way matching catches duplicate invoices and price discrepancies before payment. AI-assisted risk advisors assess every invoice and purchase request automatically, flagging anomalies, surfacing risk indicators, and recommending a course of action before your team makes a decision.

### What is segregation of duties and why does it matter for fraud prevention?

Segregation of duties is a financial control that separates the authority to request a purchase from the authority to approve it and process payment. Without this separation, a single employee can initiate and authorize a transaction, creating an environment where fraud, errors, and unauthorized spend go undetected. In Fraxion, segregation of duties can be configured into the workflow and enforced automatically on every transaction, so the control is structural rather than dependent on individual compliance or manual oversight.

### How does Fraxion catch duplicate payments?

Every incoming invoice is checked against existing records and matched to the original purchase order and goods receipt automatically. Fraxion's duplicate detection runs across invoice number, vendor, amount, and date, flagging potential duplicates and discrepancies before they reach the approval and payment stage. Exceptions are surfaced for review with full context, so your team resolves them before the payment run rather than recovering funds after the fact.

### How does vendor approval prevent fraud?

Vendor fraud typically enters through unvetted or fictitious suppliers added to the system without proper authorization. Fraxion's vendor approval framework requires every new vendor to be formally reviewed and approved before they can be referenced in a purchase request. Vendor data is managed centrally, with a complete record of who approved or edited each supplier record and when. This closes off one of the most common fraud entry points before any spend is committed.

### Will fraud controls slow our purchasing process down?

No. Fraud prevention controls in Fraxion run inside the workflow, so compliant purchases move quickly and only exceptions wait for review. Requests route to the right approver automatically, and approvers act in seconds from a browser, mobile device, or Microsoft Teams. The controls add governance without adding friction for purchases that follow policy.

### How does Fraxion support a fraud investigation or audit?

Every purchase request, approval decision, vendor record, and invoice is logged automatically with a complete, timestamped audit trail. If an exception or suspicious transaction needs investigation, the full record — who initiated it, who approved it, what documents were attached — and what matching outcome was recorded is retrievable on demand. There is no reconstructing evidence from inboxes or spreadsheets. The audit trail is always complete and always current.

### How long does implementation take?

Most implementations go live within three months. A Fraxion implementation consultant guides you through each step, from configuring segregation of duties and vendor approval workflows to completing the ERP integration and user onboarding.

## Protect your organization from the fraud and errors a manual process cannot
catch

Fraxion closes the gaps that manual processes leave open, structurally,
automatically, and on every transaction.

Book a demo customized to your organization’s needs.

[Book a demo](https://www.fraxion.biz/get-a-demo)

![Fraxion invoice list with exception flags](https://www.fraxion.biz/hubfs/website%20rebrand%202026/Fraud%20prevention%20and%20risk%20management/fraud-footer-media.webp)