Workplace fraud is becoming normalized within finance departments despite heightened concerns about AI-generated scams, according to findings from Medius’ 2026 Financial Census.
In fact, 87% of finance executives have ignored a small expense, reimbursement, or claim they believed was fraudulent. Meanwhile, 67% said they would be likely to engage in a minor dishonest expense claim themselves if the behavior were common among co-workers, fueling the rise of "shallowfakes." low-value financial rule-bending, such as expense embellishment, adding up to significant business losses over time.
“Costly deepfake fraud gets all the headlines,” says Chris Wilmot, CFO at Medius. “But while finance professionals keep a sharp eye out for these scams, hundreds of thousands of dollars are slipping out the back door through shallowfake fraud. These seemingly minor “micro frauds” add up to death by a thousand cuts for organizations without the controls in place to catch them.”
Key takeaways:
· Nearly three-quarters (74%) of finance professionals believe small forms of fraud resulting in minor financial losses are already common in workplaces, while 64% said they would feel justified in committing a small dishonest financial act if they felt underpaid or undervalued. More than half (57%) admitted they would round up an expense or mileage claim if they believed it would go unnoticed.
· 93% of respondents said they are concerned about AI-generated fraud over the next 12 months. U.S. organizations reported average yearly losses of $168,000 due to invoice fraud, with respondents seeing an average of one successful invoice fraud attempt per month.
· Despite 85% of finance teams reporting some level of accounts payable automation, nearly half of invoices still require manual intervention. Organizations estimate that 28% of invoices are paid late in a typical month, while 96% say managing late payments has contributed to stress or burnout among AP teams.
· Nearly half (45%) of respondents said suppliers have imposed stricter upfront payment terms in response to late payments, while 43% reported suppliers ending relationships altogether. More than four in 10 also said suppliers had reduced service quality or speed (42%) or escalated disputes to formal legal action (42%), highlighting the growing commercial consequences of delayed payments.
· 38% of finance executives already have agentic AI operating within at least some finance processes, while a further 50% plan to deploy agentic AI within the next 12 months. Despite this, trust remains a significant hurdle.
· 90% of finance professionals said there is always a financial or compliance threshold requiring human approval, regardless of AI accuracy or track record. At the same time, accountability for AI decision-making remains unclear. When asked who would be responsible if an AI error caused financial loss or a compliance issue, respondents were nearly evenly split between IT leaders, finance leaders, and the employees acting on AI recommendations. 45% of finance leaders said their teams often act on AI-generated recommendations without human intervention, highlighting the tension between growing reliance on AI and uncertainty around governance.
· More than half (55%) of finance leaders said AI fluency has become a meaningful differentiator in recruitment, while 86% said employees' use of AI is now a factor in performance evaluations.
· Three-quarters (75%) of respondents said AI usage has increased worker fatigue or burnout, underscoring the challenges organizations face as they adapt to rapidly changing expectations around technology, productivity, and skills development.
