Faking it: How AI-generated receipts are causing real headaches (and what we can do about it)

If you've been noticing a few receipts lately that look just a bit too perfect - crisp, clean, and suspiciously error-free - you're not alone.

AI-generated imagery is getting better (and sneakier), and it's beginning to cause a very real problem for businesses, especially in the world of accounting.

Welcome to the era of the deep-fake expense claim.

What's going on?

Over the past year or so, AI tools have made it frighteningly easy to whip up hyper-realistic fake images - including receipts. With just a few keystrokes, someone can generate a convincing image of a meal at Nando's, a taxi ride from Heathrow, or a stack of B&Q materials. The formatting is sharp, the fonts are bang on, and the logos are so crisp they'd make a graphic designer weep.

To the untrained eye, and sometimes even to the trained one, these receipts can be hard to spot. And while most people aren't out there looking to cook the books, a handful of bad actors are testing just how far they can push it.

Why does it matter?

Aside from the obvious risk of reimbursing expenses that were never actually incurred, fake receipts create broader problems:

• Compliance risk: If HMRC comes knocking and finds out you've been claiming for AI-faked purchases, "the AI made me do it" won't quite cut it.
• Financial impact: If you're refunding expenses or including fraudulent costs in your accounts, you're quite literally burning money.
• Trust erosion: In small teams especially, the idea that someone's gaming the system can chip away at morale.

Let's be honest - if someone can get away with a fake Pret sandwich and a cheeky Uber every week, others might be tempted to try the same.

How can you spot a fake?

You don't need to become a forensic analyst, but there are a few red flags worth watching for:

• Suspicious uniformity - If every receipt looks weirdly similar, like it was printed from the same template, it might have been.
• Timing gaps - Receipts that don't align with calendar events or shift times (e.g. a 2am "working lunch") deserve a second look.
• Overly perfect details - Real receipts are messy. They smudge. They crease. The ink bleeds. They include odd abbreviations. If it looks too clean to be real, it might be.
• Image metadata - If you receive digital receipts, checking the file metadata (yes, we're going full nerd here) can sometimes reveal when and how the image was created.

What can businesses do about it?

Here's the good news: there are ways to get ahead of this trend - and most of them are relatively simple.

1. Use expense tools with built-in verification
   Modern expense management platforms (like Dext, Expensify, or Xero's own capture tool) often scan receipts for authenticity. Some are even starting to introduce AI to detect other AI (talk about fighting fire with fire...). These tools can flag inconsistencies, detect reused images, or identify file manipulations - all before the receipt hits your books.
2. Require original PDFs or app-generated receipts
   Encourage your team to forward original emailed receipts or use apps that link directly to merchants (e.g. Uber, Trainline, major retailers). AI struggles to spoof the real digital fingerprint of an email from Pret or a live invoice from Booking.com.
3. Tighten internal controls (without becoming the fun police)
   Set clear expectations for what's claimable, and ask for itemised receipts - not just totals. A £15 coffee might fly under the radar, but if it's listed as 4 oat milk lattes and one "consulting fee," you'll spot the issue fast.
4. Educate your team
   A 5-minute internal update or lunch-and-learn on the risks of AI-faked receipts can go a long way. You're not accusing anyone - you're making them part of the defence team. Plus, most people genuinely enjoy being a step ahead of tech scammers.
5. Build trust and transparency
   As much as this is a tech problem, it's also a cultural one. If your team feels supported and fairly treated with expenses, they're far less likely to test the system. A clear, fair policy backed by a bit of flexibility (and a human touch) works wonders.

In summary

AI is amazing. It can write poetry, drive cars, and - apparently - generate bogus KFC receipts. But just because the tools are clever doesn't mean we can't be smarter.

If you'd like help reviewing your current expense process or need support introducing new tech to protect your business, we're here to help. We'll leave the AI arms race to the tech giants - but when it comes to your accounts, we'll help you keep it real.

(And remember - if a staff member claims a Domino's at 9:30am, maybe just ask a follow-up question.)