Unfortunately there are a number of fraud your employees (and supervisors), which have 
been discovered over the years of the daily punch on the time clock. The scariest part is this list is by no means really comprehensive, as there could be many other forms of fraud that employers may have not even discovered yet. So, don’t let your business fall victim to these crimes, and also make sure anyone you find using these questionable business practices are also disciplined or replaced to prevent further such fraudulent actions. The good news is most of these can be easily prevented with accurate record keeping and the proper employee and managerial rotations.
Not Paying Back Payroll Advances, even if you have legitimately forgotten about your payroll advance, is considered stealing and also fraud if you do not pay it back. No one on your payroll can even get away with this if you keep proper records whenever an employee is granted an advance. Repayment must and should always be closely monitored as well in order to make sure the debt is paid in full. With proper staffing practices and recording methods, this form of fraud is very easy to find and rectify.
Buddy Punching is considered as one of the methods of fraud that usually require a buddy (this isn’t Fight Club buddy punching though, so don’t you look for the employees coming in with cuts and bruises). This practice also involves the sharing of personal information in order to clock out each other in at times they wouldn’t normally be able to log in themselves. A review of the time sheets and also getting an actual head count on days you may suspect an employee isn’t where they should be is a totally easy way for your manager or supervisor to actually find culprits and accomplices in this type of fraud. If you choose to keep them on, the threat of termination is usually enough to quell further attempts at buddy punching. Make sure you have identified all who are involved as well, to make sure no one else is pulled into the fraud scheme. Safeguard your company’s interest with employee fraud detection and prevention.
Ghost employees are considered a real problem. No, Patrick Swayze hasn’t joined your company, but if you don’t want to keep up with how many employees you have or audit your payroll records, he might as well be. This type of fraud is masterminded by the payroll staff. Either they continue to log many hours for an employee who has left the company, or they tend to make a fake person all together then collect the accrued “work” said ghost employee has actually “logged.”
