Know your scam – seven common types of payroll fraud

Payroll fraud takes many forms and new threats emerge all the time. Some scams exploit weaknesses and blind spots within your business and payroll systems, and some undermine from outside.

The key is to know what to look for and have a payroll system and process designed for transparency and oversight.

Seven common types of payroll fraud

• Impersonation scams – external parties access employee information through email or ‘phishing’ and redirect employee funds.
• Supplier collusion – contractors inflate their claim for hours worked or manipulate financial data to receive performance-based bonuses.
• Unpaid Advances – an employee requests an advance on their pay and then never repays it.
• Ghost employees – payroll staff create a fake employee profile and redirect fraudulent payments to their own account.
• Pay rate alteration – employees collude with the payroll administrator to increase the level of their hourly rate in the payroll system.
• Buddy punching – employees punch each other’s hours into the company time clock to claim un-earned wages.
• Unauthorised hours – employees pad-out time sheets, usually in small enough increments to escape the notice of managers.

Let’s chat!

For your most uncomplicated payroll solution, speak with our expert team. Our Aurion payroll specialists are available to discuss how we can tailor your optimised payroll solution to let your workforce thrive! You can reach our experienced team by:

• calling 1300 287 466
• sending an email to [email protected]
• filling out this contact form and we’ll reach out to you

We’re excited to partner with you to make life work better!