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Scrutinise these four areas to detect 'ghost' fraud

by , 24 October 2014
Ghost employee fraud is a real threat to your business.

This type of payroll fraud happens when an employee adds a fake employee to your payroll system.

According to JP Sims Consulting, the ghost can be a real person who knowingly or not is placed on the payroll, or a fictitious person invented by the fraudster. The aim of the fraud is to have a wage paid to the ghost and collected by the dishonest employee.

Now the big question is: Can you detect ghost employee fraud?

Yes, you can.

Here are the four areas you must scrutinise to detect 'ghost' fraud in your business.


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Four areas you must scrutinise to detect ghost employee fraud

 
According to JP Sims Consulting, a company that specialises in corporate investigations, you must look into these areas to detect ghost employee fraud:
 
1. Employee files with missing information as the dishonest employee will want to place as little verifiable information on the file as possible. There may be no personnel file at all.
 
2. A number of employees with the same mailing address or using post boxes as mailing addresses. A computerised payroll system can help you check this information.
 
3. More than one employee using the same bank account for the deposit of wages. You can also check this with a computerised payroll system.
 
4. An employee name on the payroll list that doesn't have a clearly defined job description, or that no one (or only one person) can recognise.
 
Looking into these four areas will help you detect ghost employee fraud. In addition to scrutinising these areas, use these six tips to minimise ghost employee fraud.
 
PS: We strongly recommend you check out The Essential Fraud-Proof Business Guide. It will help you deal with all aspects of fraud from online payment fraud, financial statement fraud to other fraud schemes that pose a risk to your business.


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