Enterprise fraud management: How to detect, prevent, and mitigate risks

Nearly 90% of US companies were targeted by cyber fraud in 2024, with 47% losing over $10 million due to successful attacks. Worse yet, cyber tactics powered by generative AI surged by 118%, making it harder for businesses to detect and prevent evolving threats. As fraud grows more sophisticated, companies must adopt enterprise fraud management (EFM) solutions to protect their finances.

Trustpair strengthens EFM strategies by automating fraud detection, monitoring third-party risks, and securing financial transactions in real time, helping businesses stay ahead of fraudsters before it’s too late. Learn more interesting fraud trends in our 2025 US Fraud Report!

What is enterprise fraud management?

Enterprise fraud management (EFM) is a comprehensive approach to detecting, preventing, and mitigating fraudulent activities across an organization. It involves using advanced technologies, data analytics, and automated monitoring to identify suspicious transactions and behaviors in real time.

Unlike traditional risk detection methods that focus on isolated incidents, EFM provides a holistic view of fraud risks by integrating data from multiple sources, including financial transactions, user behavior, and third-party interactions. This allows businesses to detect patterns, assess risks, and take proactive measures to prevent fraud before it causes financial or reputational damage.

By leveraging enterprise fraud risk management solutions, businesses can strengthen their defenses, comply with regulatory requirements, and protect their financial operations from evolving threats.

 Common fraud risks businesses face today

Fraud is an ever-evolving challenge, with businesses facing numerous risks that could result in financial loss, reputational damage, or legal consequences. Let’s take a deeper look at the most prevalent fraud risks businesses encounter in 2025.

1. Cyber Fraud and Data Breaches:  In the digital age, data breaches have become one of the most common forms of fraud. Hackers target businesses to steal sensitive information, such as customer data and financial records, which they can later sell on the dark web or use for identity theft. The rapid growth of Gen-AI-driven fraud tactics makes it harder for traditional security systems to keep up.
2. Third-Party Vendor Fraud: As businesses expand, they often rely on third-party vendors for various services. However, these external partners can pose significant risks, especially if their internal systems aren’t secure. For example, criminals may compromise a vendor’s system and use it to send fake invoices or manipulate transactions.
3. Account Takeover (ATO) and Identity Theft: Account takeover occurs when fraudsters steal a legitimate user’s login credentials and gain unauthorized access to accounts. This risk is especially prevalent in businesses that deal with sensitive customer data or financial transactions. The rise in credential stuffing attacks (where hackers use stolen usernames and passwords) has made account takeovers a bigger threat than ever.
4. Invoice Fraud: Invoice fraud continues to be a significant concern for businesses, particularly when invoices are manipulated by cyber criminals pretending to be legitimate suppliers. With companies relying more on digital invoicing systems, detecting false invoices or altered bank account details becomes a greater challenge.
5. Internal Fraud and Employee Dishonesty: Internal fraud is committed by employees who exploit their access to company systems, often involving theft, embezzlement, or financial misreporting. Companies are at risk when they lack adequate monitoring systems to identify suspicious activity within their own operations.

Key components of an enterprise fraud risk management solution

An effective enterprise fraud risk management solution combines multiple technologies and strategies to identify, prevent, and mitigate fraud across various business processes. These components work together to provide comprehensive protection against internal and external threats.

1. Real-Time Fraud Detection and Monitoring: Real-time monitoring is a cornerstone of any fraud management system. With criminals constantly evolving their tactics, businesses need solutions that can detect suspicious activities immediately. These solutions use advanced algorithms and machine learning to analyze transaction patterns, user behavior, and other risk factors in real-time, allowing businesses to flag suspicious payments before they result in financial loss.
2. AI-Powered Fraud Prevention Tools:  Artificial intelligence (AI) is playing an increasingly crucial role in enterprise fraud risk management. AI-driven tools can learn from historical data and identify emerging fraud patterns, offering a level of precision that traditional methods cannot match. These tools often include predictive analytics and risk scoring to assess transactions and accounts, flagging them for further investigation or automatic blocking if necessary.
3. Vendor and Third-Party Risk Management: Third-party fraud is one of the most significant threats facing businesses today. To mitigate this risk, it’s vital for organizations to verify the legitimacy of vendors and third-party service providers. Enterprise fraud management solutions often include third-party risk management tools that verify vendor information, monitor payments, and detect discrepancies in invoices, helping to reduce fraudulent activities from external partners.
4. Automated Payment Validation and Approval: Automating the payment process is essential to preventing invoice fraud and account manipulation. A strong enterprise fraud risk management solution will include automated payment validation, ensuring that all transactions are cross-checked against approved vendors and verified bank account information. This feature can prevent errors and reduce human intervention, minimizing the risk of fraud.
5. Comprehensive Data Analytics and Reporting: Fraud risk management solutions rely heavily on data analytics to detect trends, measure risk, and monitor the effectiveness of risk prevention measures. These solutions offer comprehensive reporting tools that provide actionable insights for fraud detection teams. By analyzing data from across the business, organizations can identify weak points in their processes and take steps to address them.
6. Compliance and Regulatory Features: Staying compliant with industry regulations and standards is essential for businesses, especially in sectors like finance, healthcare, and retail. A strong enterprise fraud management solution will help businesses adhere to relevant compliance requirements by ensuring that all transactions meet legal standards, reducing the risk of non-compliance penalties.

When selecting enterprise fraud monitoring software, businesses need to carefully consider their unique needs, the scale of their operations, and the level of sophistication required to combat fraud. With the rise of increasingly complex fraud tactics, choosing the right software is essential for safeguarding sensitive data, maintaining customer trust, and mitigating financial loss.

Here are some key considerations when choosing the right fraud monitoring software:

• Data analytics and reporting: The software should offer detailed insights into patterns and trends, allowing you to understand vulnerabilities and improve fraud detection over time. This is also essential for compliance and auditing.
• Scalability and flexibility: Your fraud monitoring software should grow with your business and adapt to evolving threats. It should be customizable to fit your specific needs and provide protection for all aspects of your operations.
• User-friendliness: A complex system can slow down operations. Choose software with an intuitive interface that your team can easily use, minimizing training and errors.
• Customer support: Ensure the software provider offers responsive and knowledgeable support to assist with troubleshooting and guidance, especially in critical situations.

One example of a fraud prevention solution that ticks all the boxes is Trustpair. Our platform focuses on third-party fraud detection, payment validation, and vendor risk management. By integrating seamlessly into existing workflows, Trustpair provides real-time insights and analytics, helping businesses mitigate fraud without slowing down operations. The ability to prevent vendor fraud, validate payments, and manage third-party risks makes the platform an excellent solution for companies serious about fraud prevention.

The role of AI and machine learning in enterprise fraud detection

AI and machine learning are reshaping enterprise fraud detection, but they also introduce new risks. Fraudsters are leveraging AI to automate attacks, create deepfake identities, and bypass traditional security measures. As fraud tactics become more sophisticated, businesses need robust fraud management tools to stay protected.

Rather than relying solely on AI-driven detection, companies must implement comprehensive fraud prevention solutions like Trustpair, which provide continuous monitoring, verification, and secure financial controls. By using strong risk management frameworks, businesses can safeguard their payments against the rising threat of AI-powered fraud.

To conclude

Effective enterprise fraud management requires a proactive approach as fraud tactics evolve, especially with AI-driven threats. Trustpair helps businesses stay ahead by providing continuous monitoring and secure financial controls to prevent fraud before it happens. Contact an expert to learn more!