AI fraud is the new office scam as employees fake expense receipts

With artificial intelligence weaving its way into everyday life at a notable speed, scams are evolving just as quickly – becoming sharper, more convincing, and far harder to detect.

We’ve already seen celebrities and online personalities targeted by deepfakes, blurring the line between what’s fact and fiction. But the latest wave of AI-driven deception is unfolding much closer to home — inside the workplace.

According to new data, some employees are now using AI to generate fake receipts and invoices to claim fraudulent expenses.

A report from expense software company AppZen found that in September 2025 alone, 14 per cent of documents submitted for reimbursement were fake. While that figure may appear modest, it marks a sharp rise from 0 per cent in 2024, suggesting the trend is quickly escalating.

Fintech firm Ramp supported those findings, identifying around $1 million worth of fraudulent invoices in just the past 90 days.

“These receipts have become so good, we tell our customers, ‘do not trust your eyes,’” said Chris Juneau, senior vice-president and head of product marketing at SAP Concur, as cited in Tech Radar.

iStock

And it’s not only the corporate world grappling with the misuse of AI. The education sector has been facing its own battle with academic dishonesty since the technology went mainstream.

Experts say that AI-assisted plagiarism remains one of the biggest concerns for universities. Every fourth student (41 per cent) still believes that using AI in coursework is a form of cheating.

For those caught doing so, the consequences are serious.

Around 14 per cent of students reported knowing someone who had been penalised for AI misuse. Punishments have ranged from marks being capped at a pass (40 per cent) or being asked to resubmit work due to a low similarity score on Turnitin, to failing the module outright – and, in severe cases, repeating an academic year or even expulsion.

You should also read...

• 'So scary': Rise of AI deepfakes prompt calls for family safe words
• 'Dystopian' AI necklace lets you chat with 'AI bestie': ‘We’re literally living in 1984’

How to join the indy100's free WhatsApp channel

Sign up for our free Indy100 weekly newsletter

Have your say in our news democracy. Click the upvote icon at the top of the page to help raise this article through the indy100 rankings.