In recent times, there has been a huge increase in the number of fraudsters maliciously scamming businesses of all shapes and sizes – and even their crimes seem more sophisticated. Throughout the Coronavirus outbreak, as many migrated their businesses online, the increase in fraudulence and general cyber-crime become a large cause for concern, and payroll fraud wasn’t an exception.
Payroll fraud is certainly costly and, on average, UK businesses lose a total of £12 billion every year to this type of crime, according to the recent research. Indeed, it is a common type of employee deception, along with fiddling with expenses, or ‘cooking’ reports, and stealing company data. Not all threats are external, and internal crime, from an in-house fraudster, can wrongfully drain your company of its profits.
What are the most common payroll fraud red flags? And, most importantly, what can your business do to prevent it?
Identifying payroll fraud
Typically, payroll fraud is an act of theft, whereby an employee frauds or cheats a payroll processing system. This requires both access to, and knowledge of, a business’ payroll system, which is normally protected internally.
Yet, it’s not always easy to identify red flags that would indicate payroll fraud. From prevention to identification, once payroll fraud has been spotted, it can become easier to manage. Understanding the common types of fraud can help your cyber-security, by anticipating the ways a crime can be committed against your business.
Ghost employees
This describes how either a fictional or real employee is falsely paid through a business’ p ..
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