Part VI
AI-Powered Document Analysis:
Uncovering Fraudulent Documentation with ChatGPT

Mary Breslin, CFE, CIA

Fraudulent documentation presents a significant challenge for auditors, particularly as counterfeit documents and altered records become increasingly sophisticated. Traditional methods of identifying fraudulent documents often rely on manual scrutiny and the auditor’s expertise, but these approaches can be time-consuming and prone to error. Enter ChatGPT, an AI tool that is transforming the way auditors detect and analyze potentially fraudulent documentation by quickly identifying anomalies that might otherwise go unnoticed.

Identifying Anomalies in Documentation

One of the key challenges in detecting fraudulent documentation is identifying anomalies that signal potential fraud. Traditional methods involve detailed manual checks, where auditors look for inconsistencies in formatting, signatures, dates, or other document features. However, this process is labor-intensive and may miss subtle discrepancies. ChatGPT can streamline this process by quickly analyzing large volumes of documents and flagging irregularities that may indicate fraud. For example, ChatGPT can detect variations in font types or sizes, inconsistencies in document metadata, or unusual patterns in the sequence of document numbers—all of which might suggest that a document has been tampered with or forged.

Counterfeit Detection Through Pattern Recognition

Fraudsters often create counterfeit documents that mimic legitimate ones using tools like AdobePro, Photoshop, and others, making them difficult to detect with the naked eye. ChatGPT’s advanced pattern recognition capabilities can help auditors identify these counterfeit documents by comparing them against known legitimate records. For instance, it can analyze the subtle differences in how a genuine company logo or signature appears across multiple documents, detecting any deviations that could indicate a counterfeit. Additionally, ChatGPT can assess the consistency of language used within documents, identifying instances where phrasing or terminology diverges from what is typically expected in official documents.

Analyzing Digital Signatures and Authentication Features

In today’s digital age, many documents are authenticated using digital signatures or other electronic verification methods. However, these can also be manipulated by fraudsters. ChatGPT can assist auditors by analyzing the digital signatures and other authentication features embedded in documents. It can identify anomalies such as inconsistencies in encryption data, time stamps that do not align with the document’s content, or signatures that have been reused or duplicated across different documents. By scrutinizing these features, ChatGPT helps auditors confirm the authenticity of documentation or uncover potential signs of forgery.

Cross-Referencing Document Data

Another powerful application of ChatGPT in detecting fraudulent documentation is its ability to cross-reference data across multiple documents and databases. For example, it can verify that the information in a contract matches corresponding details in invoices, payment records, or other related documents. If discrepancies are found—such as a contract amount that differs from the invoiced amount or a date mismatch between related documents—ChatGPT can flag these for further investigation. This cross-referencing capability is particularly useful in identifying complex fraud schemes where multiple documents are altered to create a consistent but fraudulent narrative.

Supporting Auditors with Continuous Monitoring

Fraudulent documentation often goes undetected until after significant damage has occurred. ChatGPT can support auditors by enabling continuous monitoring of documentation, providing real-time alerts when potential fraud is detected. By setting up criteria for what constitutes suspicious activity—such as documents originating from certain high-risk regions, or multiple revisions to a key document—ChatGPT can help auditors stay ahead of fraud attempts. This proactive approach reduces the risk of relying solely on periodic reviews and ensures that potential issues are identified and addressed as they arise.

Conclusion

ChatGPT is a game-changer in the fight against fraudulent documentation. By leveraging its ability to quickly analyze and cross-reference large volumes of data, detect subtle anomalies, and verify the authenticity of documents, ChatGPT empowers auditors to uncover fraud more effectively than ever before. This not only enhances the accuracy and efficiency of audits but also provides organizations with greater protection against the financial and reputational risks associated with fraud.

Mary Breslin, CFE, CIA, is president and founder of Verracy, a training and consulting company. Contact her at mbreslin@verracy.com.