Payroll Fraud: It’s Global, Varied and Fueled by Technology


Payroll fraud is a global issue that is not defeated by technology. In fact, technology helps perpetuate fraud, such as the ability to photograph checks with a smartphone for deposit purposes. 

Employers that process payroll in house should look at security and password protocols and keep printers and copiers in secured areas, said Stephanie Salavejus, CPP, vice president and chief operating officer at PenSoft.

Access to the payroll department should be controlled and employers should have automated clearinghouse filters in place, Salavejus said at the annual American Payroll Association Congress in Orlando, Fla.

Employers that outsource payroll operations should reach out to their provider to find out about account security protocols, Salavejus said May 20. 

There are various types of payroll fraud is varied and has been connected to worker classification, time and attendance, counterfeit employees, benefits, and payroll processing checks and balances, said Levi Meeske, CPP,  payroll manager at PSA Healthcare.

“All companies are vulnerable to payroll fraud from external and internal sources” and the schemes continue to evolve, Meeske said. Employers can best defend against fraud by understanding how weaknesses in their processes can create opportunities for perpetrators to commit crimes, they said.

Employers should “implement tighter controls and remain vigilant in monitoring all elements of their business,” Meeske said.

Take a free trial of Bloomberg BNA’s Payroll Decision Support Network, your one-stop resource for reliable, up-to-date guidance and analysis in every area of payroll administration and compliance.

Follow Bloomberg BNA on Twitter @BloombergBNA and join the Bloomberg BNA U.S. and Global Payroll group on LinkedIn.