First KYV Vendor Fraud Solution
By Quantiva Team
The Growing Vendor Fraud Crisis
For years, fraud prevention efforts concentrated on customer verification through Know Your Customer (KYC) systems. However, a critical vulnerability has been largely overlooked: vendor fraud. This encompasses false billing, overcharging, kickbacks, and collusion between employees and vendors.
Recent data underscores the severity: The FBI's 2024 Internet Crime Report documented over $16 billion in cyber-enabled losses, a 33% jump from the previous year. A Creditsafe study revealed that 94% of U.S. companies experienced at least six vendor-related fraud cases in 2024 alone. Finance leaders report average annual losses of $1.2 million to invoice fraud, with nine successful attacks per thirteen attempts.
The threat has evolved. Fraudsters now impersonate trusted suppliers and target employees handling vendor communications and payments.
The Challenge and Solution Partnership
A prominent fraud-prevention company recognized this gap and envisioned a Know Your Vendor (KYV) solution — real-time anomaly detection with warnings integrated into employee workflows. Their prototype wasn't market-ready, so they partnered with Quantiva to develop a production-grade product.
Data-Driven Detection Engine
Quantiva analyzed millions of payment records and email interactions to build an analytics engine identifying subtle patterns humans typically miss — shifts in invoice timing, banking details, or sender behavior. The system automatically scores and flags signals, allowing non-technical teams to customize detection thresholds and escalation rules.
Outlook 365 Integration
Since vendor fraud typically originates via email, Quantiva developed a Microsoft Outlook add-in. Employees now see vendor reputation scores, anomaly alerts, and verification tools within email messages — no new dashboards or logins required.
Market Launch Success
The solution launched as the first commercially available KYV platform, achieving a 74% increase in fraud-detection effectiveness among early adopters.
Key Outcomes
- First-to-market KYV platform delivered on schedule
- Real-time anomaly detection across messages and transactions
- Flexible rule engine for non-technical risk teams
- Outlook 365 integration driving immediate adoption