What characterizes a case of duplicate payments?

In the context of financial crimes, a case of duplicate payments is characterized by the issuance of two payments for the same invoice. In this scenario, one payment goes to the legitimate vendor, while the second payment is directed to a fraudster posing as the vendor. This type of fraud exploits the invoicing system, leading to the same invoice being paid twice, but to different recipients—one legitimate and one fraudulent. This emphasizes the critical need for rigorous invoice verification and payment procedures to mitigate the risks associated with duplicate payments.

The other choices depict different types of financial discrepancies but do not accurately illustrate the concept of duplicate payments. For instance, payments made to different vendors for the same invoice represent invoicing errors or mismanagement, rather than duplication. Additionally, payments made for products that were never delivered and checks issued for invalid invoices describe issues relating to fraud or poor accounting practices, rather than focusing on the specific problem of duplicate payments.