Generative Artificial Intelligence now enables the creation of highly realistic, fraudulent receipts, presenting a significant challenge to corporate financial controls. This technology has moved from theoretical to practical application, with tools capable of producing convincing forgeries that can be used to defraud expense reimbursement systems.

These AI-powered tools allow individuals to fabricate receipts for personal or business expenses that were never incurred. The resulting forgeries are often difficult to detect with the naked eye, marking a notable evolution in digital document fraud and creating a tangible risk for businesses of all sizes.

How AI Forges Realistic Receipts

The technology behind AI receipt generation typically involves models trained on vast datasets of genuine receipts. By analyzing thousands of examples, the AI learns to replicate common layouts, corporate logos, fonts, and transaction details. Users can then input custom information, such as vendor names, dates, line items, and total amounts, to generate a unique digital receipt image.

The sophistication of these systems allows them to mimic subtle details, including simulated paper textures and realistic wear, making them appear authentic. This level of detail enables the forgeries to bypass basic human inspection and some automated verification processes that are not equipped to detect AI-generated artifacts.

The Documented Impact on Business Security

The primary documented use of these forgeries is in expense reimbursement fraud. Employees or malicious actors can submit these AI-generated receipts to claim payment for non-existent meals, travel, or supplies. Fraud prevention experts and organizations, including the Association of Certified Fraud Examiners (ACFE), have issued warnings regarding this specific type of AI-driven fraud.

Traditional expense auditing methods, including Optical Character Recognition (OCR) scanning, can be vulnerable to these forgeries. While OCR can extract text and check for policy violations like duplicate submissions, it does not typically authenticate the document’s origin. This creates a security gap that finance and compliance departments must now address with more advanced fraud detection solutions.

Source: https://www.schneier.com/blog/archives/2025/11/faking-receipts-with-ai.html