People think payroll outsourcing can lead to payroll fraud and it’s not hard to see why. When you leave someone you don’t personally know in charge of payroll it can feel as though they are more likely to trick you out of money than someone you know. That isn’t quite the case because payroll fraud can occur at any given time. The problem today is that there are far more fraudsters out there than you think and that people are becoming brazen and trying bolder things. It’s something which most don’t realize and yet it’s something which should become a priority today. So, how can fraud occur and are there any ways to prevent this?
A Lack of Knowledge of Payroll Can Cause a Fraud to Occur
When you have very limited knowledge of payroll it can result in fraud. How? Well, you are less likely to spot a fraud. That is a real problem but it happens more often than you might think. It’s something which more have to take notice of because it’s easy to commit a fraud. That is why there are now more and more who are committing such acts. You might think your payroll is safe but if you know very little about it then it could be happening right under your nose. That’s really a major concern and you have to think very carefully about what you know about payroll. Hiring payroll services can be a good idea but you still have to ensure you have some knowledge about payroll.
People Think You Won’t Notice
There is also another problem – fraudsters think they can get away with their actions and think their boss won’t notice. It can be very slick because it’s not a major fraud or even one that’s noticeable. It can be very minimal with one added name to the payroll list in a list of thousands or a few additional overtime hours that are never checked over. It’s so simple and in truth nine times out of ten you wouldn’t notice such a fraud. That however, isn’t always as a result of payroll outsourcing. People who you know and have worked with for hours could do the same. You have to think about that too when it comes to preventing payroll fraud.
Regular Random Spot Checks
To be honest, spotting payroll fraud is not easy because it can happen at the best of times and can be so difficult to detect also. That’s a real problem because if it’s not noticeable or a small fraud spotting it is hard. However, if possible get a third party unbiased payroll professional to look over the payroll information every so often. You could also conduct some random spot checks. That would make things far easier to help detect even the smallest fraud or problem. You might not think about this but it can be important. Payroll services can do this for you or you could look at doing this yourself.
Catching the fraudsters in the act is not easy and it’s fast becoming a major problem for most businesses. Large and small businesses alike can be a victim of fraudsters so you have to do your best to try and stop this from happening. There are a few steps that can be taken to help prevent such matters. Payroll outsourcing can be a good idea but it has to work for you today.