Payroll Fraud: Key Points for Prevention and Detection

Payroll fraud, a global menace, is a serious issue that affects organisations of all sizes and industries. It involves manipulating payroll systems to misappropriate funds, leading to significant financial losses and severe reputational damage. The Association of Certified Fraud Examiners (ACFE) reports that payroll fraud accounts for 9% of all asset misappropriation cases worldwide, with a median loss of $45,000 per incident​. This type of fraud can manifest in various ways, including timesheet fraud, pay rate alterations, ghost employees, commission fraud, and expense reimbursement fraud.

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