Uphando Forensics

the different types of Payroll fraud

Payroll fraud is a serious threat to businesses in South Africa and there are a number of ways in which fraudulent activities can occur. Below, we list some of the most common types of payroll fraud affecting businesses in South Africa.

1. Ghost employees: This is where a fictitious employee is added to the company payroll in order to draw wages without actually working for the company. The money is then diverted elsewhere and is not visible to the payroll department.

2. Bonus fraud: This type of fraud occurs when a dishonest employee increases their bonus payments above what they are entitled to. This is done by falsifying performance reviews or time sheets.

3. Unapproved overtime: This type of fraud occurs when unapproved overtime payments are made to employees who are not actually working the hours they claim to be. This is typically done by falsifying attendance records, or by having employees sign off on overtime slips that have already been completed.

4. Unapproved reimbursement claims: This type of fraud occurs when employees claim reimbursement for expenses which are not legitimate. This is usually done by making up fictitious receipts for items never purchased, or by inflating the cost of legitimate transactions.

5. Unauthorized deductions: This type of fraud occurs when deductions are taken.

Should you need assistance wih your payroll get in-touch with Uphando HR Services