The following article was first published on Shipman & Goodwin attorney Dan Schwartz’ Connecticut Employment Law Blog. It is reposted here with permission.
Confession time: I sometimes go down a Reddit rabbit hole and the “Is This AI?” forum might be one of them.
So, a recent post tells a story that should make every employer paying expense reimbursements sit up. An employee submitted a receipt for a package release payment. The tracking number checked out. But something about the receipt looked off.
The poster couldn’t quite identify the problem, so they asked the internet. The commenters spotted it immediately: the fonts were too clean, the formatting too uniform, the wear and tear too perfectly imperfect.
The consensus was that the receipt was AI-generated. The poster’s takeaway? “Definitely sounds like I need to get HR involved in this.”
Welcome to the new frontier of expense fraud.
This is no longer a hypothetical concern.
A June 2026 survey by Emburse of 2,000 workers in the U.S. and U.K. found that 40% of U.S. employees admitted to using AI to generate a fake receipt for a business expense.
Nineteen percent said they fabricated a purchase entirely. Fifteen percent used AI to inflate the value of a real purchase. And 36% of those who created fake receipts did so using AI tools paid for by their employer.
Those are crazy stats even if the survey’s basis is a bit sketchy.
The tools that make this possible are free, widely available, and...
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