Çekmeköy masaj salonu Çerkezköy masaj salonu Çeşme masaj salonu Ceyhan masaj salonu Çiğli masaj salonu Çivril masaj salonu Çorlu masaj salonu Çorum masaj salonu Çubuk masaj salonu Çumra masaj salonu Dalaman masaj salonu Darıca masaj salonu Davutlar masaj salonu Defne masaj salonu Demetevler masaj salonu Demre masaj salonu Derince masaj salonu Develi masaj salonu Didim masaj salonu Dikili masaj salonu Dörtyol masaj salonu Döşemealtı masaj salonu Dulkadiroğlu masaj salonu Edremit masaj salonu Efeler masaj salonu Elbistan masaj salonu Elmalı masaj salonu Erbaa masaj salonu Erdemli masaj salonu Ereğli masaj salonu bayan escort Malatya escort Manisa escort Maraş escort Mersin escort Muğla escort Ordu escort Osmaniye escort Rize escort Sakarya escort Samsun escort Karacabey escort Karahayıt escort Karaköprü escort Karapınar escort Karasu escort Karatay escort Karesi escort Karşıyaka escort Kartal escort Kaş escort Keçiören escort Kemalpaşa escort Kemer escort Kepez escort Keşan escort Kestel escort Kiraz escort Kırıkhan escort Kırkağaç escort Kocasinan escort Konaklı escort Konyaaltı escort Körfez escort Korkuteli escort Köyceğiz escort Kozan escort Küçükçekmece escort Kulu escort Kumluca escort Kuşadası escort Lüleburgaz escort Mahmutlar escort Malkara escort Maltepe escort Manavgat escort Marmaris escort Melikgazi escort Menderes escort Menemen escort Menteşe escort Meram escort Merkezefendi escort Merzifon escort Mezitli escort Milas escort Mudanya escort Muratpaşa escort Mut escort Narlıdere escort Nazilli escort escort Mersin escort İzmir escort Ankara escort Antalya escort Bursa escort Gaziantep escort Denizli escort Adana escort Hatay escort Samsun escort Kocaeli escort Konya escort İstanbul escort Eskişehir escort Malatya escort Kayseri escort Sakarya escort Balıkesir escort Çanakkale escort Aydın escort Muğla escort Tekirdağ escort Yalova escort Trabzon escort Sivas escort Ordu escort Maraş escort Manisa escort Tokat escort Rize escort Amasya escort Ümraniye escort Üsküdar escort Zeytinburnu escort Çeşme escort Sincan escort Gaziemir escort İskenderun escort Buca escort Çubuk escort Marmaris escort Torbalı escort Haymana escort Kepez escort Osmangazi escort Bağcılar escort Muratpaşa escort Görükle escort Avcılar escort Darıca escort Çumra escort Anamur escort Çarşamba escort Ulus escort Kaş escort Gürsu escort Güngören escort Mut escort Kadıköy escort İznik escort Serik escort Menemen escort Aksu escort Kağıthane escort Kartal escort Maltepe escort Tire escort Finike escort Pendik escort Sarıyer escort Şişli escort Sultangazi escort Tuzla escort Konyaaltı escort Seyhan escort Melikgazi escort Ödemiş escort Mamak escort Kemer escort Mudanya escort Çekmeköy escort Körfez escort Meram escort Aliağa escort Polatlı escort Belek escort Gemlik escort Esenler escort Fatih escort Selçuklu escort Datça escort Gümbet escort Serdivan escort Konak escort Keçiören escort Lara escort Yıldırım escort Beylikdüzü escort Gölcük escort Karşıyaka escort Çankaya escort Manavgat escort Nilüfer escort Arnavutköy escort Gebze escort Beyşehir escort Silifke escort Atakum escort Çorlu escort Didim escort Kuşadası escort Merzifon escort Bandırma escort Antakya escort Ceyhan escort Battalgazi escort Elbistan escort Bodrum escort Akşehir escort Tarsus escort İlkadım escort Çerkezköy escort Bornova escort Batıkent escort Alanya escort İnegöl escort Orhangazi escort İzmit escort Keşan escort Isparta escort Bolu escort Erzincan escort Van escort Yozgat escort Zonguldak escort Afyon escort Bilecik escort Aksaray escort Elaziğ escort Osmaniye escort Şanliurfa escort Giresun escort Burdur escort Diyarbakir escort Edirne escort Kocasinan escort Onikişubat escort Salihli escort Milas escort Pamukova escort Birecik escort Yıldızeli escort Ortahisar escort Malkara escort Yakutiye escort Zara escort Yomra escort Karatay escort Mezitli escort Canik escort Efeler escort Ayvalık escort Kırıkhan escort Pazarcık escort Soma escort Dalaman escort Sapanca escort Haliliye escort Akdeniz escort Terme escort Söke escort Karesi escort Yüreğir escort Payas escort Talas escort Türkoğlu escort Turgutlu escort Karaköprü escort Samandağ escort Yunusemre escort Köyceğiz escort Siverek escort Toroslar escort Menteşe escort Kestel escort Yenişehir escort Yatağan escort Urla escort Korkuteli escort Kumluca escort Karacabey escort Alanya escort Manavgat escort Fethiye escort Kemer escort Didim escort Çorum escort Düzce escort Erzurum escort Kırklareli escort Kilis escort Kars escort Karabük escort Kırıkkale escort Mardin escort Kırşehir escort Muş escort Kastamonu escort Nevşehir escort Ardahan escort Bartın escort Karaman escort Siirt escort Batman escort Bayburt escort Uşak escort Igdır escort Sinop escort Şırnak escort Adıyaman escort Ağri escort Bitlis escort Gümüşhane escort Hakkari escort Bingöl escort Safranbolu escort Boyabat escort Kızıltepe escort Üzümlü escort Bucak escort Kadirli escort Ardeşen escort Çerkeş escort Gelibolu escort Gerede escort Dinar escort Besni escort Bozüyük escort Eskil escort Diyadin escort Ahlat escort Çivril escort Bağlar escort Akçakoca escort Aziziye escort Lüleburgaz escort Şahinbey escort Bulancak escort Digor escort Keskin escort Bünyan escort Kaman escort Akhisar escort Bulanık escort Altınordu escort Bor escort Avanos escort Adapazarı escort Virenşehir escort Gemerek escort Kangal escort Akçaabat escort Erbaa escort Tavşanlı escort Çayeli escort Suluova escort Edremit escort Ilgaz escort Biga escort Göynük escort Çukurova escort Kaynaşlı escort Emirdağ escort Gölbaşı escort Söğüt escort Ortaköy escort Dogubayazıt escort Güroymak escort Karahayıt escort Bismil escort Horasan escort Mucur escort Babaeski escort Şehitkamil escort Espiye escort Kağızman escort Yahşihan escort Develi escort Doğanşehir escort Afşin escort Alaşehir escort Malazgirt escort Fatsa escort Ürgüp escort Akyazı escort Eyyübiye escort Şarkışla escort Araklı escort Niksar escort Simav escort Ergene escort Fındıklı escort Nazilli escort Taşova escort Susurluk escort Çan escort Mudurnu escort Defne escort Kozan escort Sandıklı escort Yahyalı escort Patnos escort Kahta escort Pamukkale escort Ergani escort Oltu escort Nizip escort Görele escort Sarıkamış escort Yeşilyurt escort Dulkadiroğlu escort Kırkağaç escort Varto escort Fethiye escort Kumru escort Erenler escort Akçakale escort Suşehri escort Of escort Turhal escort Derince escort Ereğli escort Erdemli escort Bafra escort Kapaklı escort Pazar escort Davutlar escort Altıeylül escort Ayvacık escort Dörtyol escort Sarıçam escort Sur escort Palandöken escort Nurdağı escort Tirebolu escort Zile escort Ünye escort Selim escort bursa escort bursa escort istanbul escort denizli escort düzce escort malatya escort erzincan escort zonguldak escort eskişehir escort gaziantep escort gaziantep escort gümüşhane escort hatay escort hatay escort ığdır escort gaziantep escort istanbul escort konya escort izmit escort kars escort escort adana escort bayan adıyaman escort bayan afyon escort bayan ağrı escort bayan aksaray escort bayan amasya escort bayan antalya escort bayan ankara escort bayan ardahan escort bayan artvin escort bayan aydın escort bayan balıkesir escort bayan bartın escort bayan batman escort bayan bayburt escort bayan bilecik escort bayan bingöl escort bayan bitlis escort bayan bolu escort bayan burdur escort bayan bursa escort bayan Çanakkale escort bayan Çankırı escort bayan Çorum escort bayan denizli escort bayan diyarbakır escort bayan düzce escort bayan edirne escort bayan elazığ escort bayan sivas escort bayan sinop escort bayan urfa escort samsun escort bayan sakarya escort bayan rize escort bayan osmaniye escort bayan ordu escort bayan niğde escort bayan nevşehir escort bayan muş escort bayan muğla escort bayan mersin escort bayan mardin escort bayan manisa escort bayan malatya escort bayan kütahya escort bayan konya escort bayan kocaeli escort bayan kırşehir escort bayan kırklareli escort bayan kırıkkale escort bayan kilis escort bayan kıbrıs escort bayan kayseri escort bayan kastamonu escort bayan kars escort bayan karaman escort bayan karabük escort bayan maraş escort izmit escort bayan izmir escort bayan istanbul escort bayan Isparta escort bayan Iğdır escort bayan hatay escort bayan hakkari escort bayan gümüşhane escort bayan giresun escort bayan gaziantep escort bayan eskişehir escort bayan erzurum escort bayan erzincan escort bayan tekirdağ escort bayan tokat escort bayan trabzon escort bayan uşak escort bayan van escort bayan yalova escort bayan yozgat escort bayan zonguldak escort bayan <

Payroll Fraud Is Real And Why SMEs Are Most At Risk

Broadly defined, payroll fraud is the theft of cash from a business via the payroll processing system. Contrary to popular belief, payroll fraud is a widespread issue that is not defeated by technology. Rather, technology is the main perpetrator of payroll frauds.

With the rapid advancements in technology today, payroll frauds these days go beyond a case whereby an employee requests for a cash advancement and fails to pay back the company. In fact, payroll crimes have evolved alongside technology, becoming more stealth and difficult to nab.

An article from “Coronavirus Pandemic Is a Perfect Storm for Fraud” shows that fraud proliferates during economic instability. According to the Association for Certified Fraud Examiners (ACFE), the average case of payroll fraud lasts two and half years and results in losses upwards of $63,000. Moreover, cheque tampering is considered the most costly type of fraud case, with companies incurring a median cost of approximately USD158,000 per instance! Additionally, the study also reported that the occurrence of cheque tampering and payroll fraud were twice as common in small organisations as opposed to large organisations.

However, payroll fraud can take any form – from creating a ghost employee to photographing cheques with a smartphone for deposit purposes. Moreover, organisations of all sizes are susceptible to the various types of payroll fraud. This could ultimately result in hefty revenue losses, sky-high legal fees, reputation damage and in worst cases, closure of a business.

Nevertheless, there are various strategies that can be implemented to combat payroll fraud. Here are some ways that can help to prevent and detect payroll fraud.

Payroll analytics reports

Engaging a payroll outsourcing vendor to help generate audit and payroll analytics report can assist in spotting any fraudulent activity and ghost employees. For instance, it can help to identify any duplicate employees or analyse monthly overtime pay or employee claims.

Direct salary deposits through a vendor

Most small businesses might still be issuing traditional salary cheques to employees. Disbursing salary to employees through a vendor might mitigate risks of unapproved or unauthorised wire transfers. While it might impose additional costs to the organisation, it could help reduce the number of hefty losses due to payroll frauds in the long run.

Beef up security on the payroll system

Employees in the payroll department should impose strict security and password protocols. Access to the payroll department should be controlled and printers as well as copiers should be kept in secured areas. Similarly, organisations that engage a payroll vendor should reach out to find out about their payroll system security protocols as well.

As mentioned, all companies are prone to payroll fraud, from both internal and external sources. As the payroll schemes continue to evolve, organisations should always be on the ball to defend against fraudulent activity by understanding the potential weaknesses within their payroll processes or systems. That way, organisations can always be one step ahead in preventing opportunities for these perpetrators to commit payroll crimes.

Things you can do to limit its impact

1. Conduct background checks

Pre-employment background checks are the first defense against payroll fraud, shedding light on everything from prior offenses to overwhelming financial debt. However, background checks in the APAC region present a number of challenges, ranging from incomplete infrastructure and databases to legal limitations. Before conducting background checks, it’s important to understand the regulatory environment for each area in which you’ll be operating.

2. Perform regular audits

A primary method of payroll fraud is through the creation of “ghost employees” – a scheme in which money is paid to employees who either don’t exist or have left the company. In Singapore, for instance, one employee kept submitting time sheets for more than six months after he was dismissed. It was happenstance that the employer finally caught on: The man submitted a timesheet for a date that was a federal holiday. A payroll audit would have alerted the employer that they were sending checks to someone who was no longer an employee. Audits are also good for identifying warning flags like direct deposits for two different employees going to the same bank account.

3. Limit access to payroll data

Use password protection to limit access to those employees who have a job-related need to view payroll information. Even then, don’t give blanket access. Narrow the focus to only that information that is necessary to perform the job.

4. Provide checks and balances

“Keeping the honest person honest,” is a well-established process of checks and balances can often eliminate opportunistic payroll fraud. In other words, with lax controls, committing fraud is so easy that even employees who are otherwise honest are tempted into taking advantage of the system. It’s like leaving your car running with the keys in the ignition. Effective checks and balances include things like making sure the employee who enters payroll data into the system is not same employee who processes the checks. Requiring management approval to add a new employee. Have a well-established weekly routine for deleting employees who are no longer with the company.

5. Encourage employees to use direct deposit

While there have been cases where employees committed payroll fraud through direct deposit, physical checks make it a lot easier. Where possible, move employees to direct deposit. If you must continue relying on physical checks, never allow an employee to pick up a check for someone else. At least once a month or so, require an ID before handing over a check.

Nobody likes to think that their employees are stealing from them. But it happens – and ignoring the problem won’t change that. You can reduce your risks by implementing time-tested controls designed to eliminate the loopholes. That make it easy for employees to commit payroll fraud.

Any business looking for ways to cut costs should carefully consider targeting payroll fraud. According to Forbes, 27% of all businesses are victims of payroll fraud, and small companies are at the greatest risk. In one survey of businesses in India, 55% of the respondents stated that their organizations had experienced fraud.

The average case of payroll fraud lasts about three years, and the amounts can be staggering. One Australian employee, for example, stole $19 million in just two years through payroll fraud. That’s discouraging news, but it also represents a significant opportunity when it comes to cost reductions.

Here are some things employers can do to minimize their risk:

  • Timecard discrepancy/falsification: Some timecard fraud is unintentional: employees write a time in incorrectly, or payroll personnel read it incorrectly. Other timecard fraud is deliberate: not recording breaks, padding hours, claiming shifts that were never worked, etc. And then there are cases where employees who leave the company continue getting paid past their termination date.
  • Rate manipulation: This occurs when employees with access to the payroll system increase their rate of pay (and maybe that of their co-workers, too). This incurs at both the managerial and administrative levels, depending on who has access.
  • “Ghost” employees: Ghost employees are just what they sound like: made-up employees who don’t really exist. An employee creates a false identity and routes that person’s compensation to themselves. This is more common in larger companies with multiple locations where there are many employees who don’t know one another.

Fraud prevention steps

Payroll fraud is much easier to pull off in smaller companies that still use a manual system. Fortunately, thanks to cloud computing, even small companies can now afford the type of technology that identifies and prevents fraud. They perform payroll functions in-house or outsource them. In addition, even with low-tech payroll systems, employers can reduce their risk with just a few common-sense procedural changes.

  • Use all available reporting functions:

    Today’s payroll technologies usually have embedded analytics that can “slice and dice” payroll data in several different ways. Warning signs include things like names of terminated employees showing up in reports, checks for more than one employee being sent to the same address or bank account, a sudden increase in hours worked, a sudden increase in total compensation, etc.

  • Limit access to master files:

    There’s no need for payroll employees at the clerk level to be able to add employees, change pay rates, or adjust hours worked. Such changes should only be made by department managers and/or senior payroll managers.

  • Increase security:

    Employees who do have access to the master files should be educated on good security practices and required to change passwords frequently. It’s also important to update the software program as new versions become available.

  • Assign various parts of the process to different employees:

    It’s risky to put too much power in the hands of a single employee, but this is a practice that’s common in smaller companies with limited staff. A division of labor provides a system of “checks and balances,” making it more difficult for employees to commit fraud.

  • Verify identity:

    Companies that distribute checks in person should require a photo ID. This makes it more difficult for anyone to pull off a successful ghost employee fraud.

  • Outsource payroll functions:

    Outsourcing payroll functions practically eliminates the opportunity to commit payroll fraud, as an employee would need to have an accomplice on the provider’s staff. In addition, third-party providers are specialists, trained in fraud detection. They also often have access to proprietary software with embedded fraud-detection capabilities.

Instituting common-sense safeguards can go a long way toward preventing payroll fraud. But today’s affordable technology solutions can practically eliminate the risk. Whether you run your payroll in-house or outsource it, let technology make payroll fraud a thing of the past.

yalova escort bayan

About iadmin

Check Also

How to Look For The Best Welding Shop In Tulsa OK

When you are looking for a quality welder, you want to be sure to find …

Leave a Reply

Your email address will not be published.