Preventing payroll fraud requires a combination of internal controls, technology, and vigilance. Here are some measures businesses can take:
Segregation of Duties: Ensure that different employees handle payroll processing, record-keeping, and distribution. Regular Audits: Conduct regular audits to identify discrepancies and unusual patterns. Use of Technology: Implement payroll software with built-in fraud detection features. Employee Training: Educate employees on the importance of accurate timekeeping and the consequences of fraud. Background Checks: Perform thorough background checks on all new hires, especially those in payroll or finance roles.