Vendor fraud schemes involve intentional deception meant to defraud organizations by exploiting their vendor programs. These schemes typically involve the vendors submitting false or inflated invoices, misusing payments, or taking advantage of preferential contract terms. Vendor fraud can be catastrophic for an organization; it can damage the organization’s relationships with customers and add significant financial losses to its bottom line. Businesses must vigilantly monitor their vendor relationships and take proactive measures against fraud in order to protect their interests.