Vendor fraud is a form of financial mismanagement wherein a vendor or third-party working with an organization deliberately acts to undermine the organization’s resources or user funds for personal gain. Examples range from counterfeit invoicing to falsifying proof of delivery documents to receiving kickbacks for purchases made with company funds. Businesses must take the necessary steps to protect themselves from the risks associated with vendor fraud, as it can have significant ramifications for their bottom line. With the right strategies and processes in place, businesses can ensure that vendors are operating honestly and within the agreed upon terms and conditions of their contracts.