Payroll Fraud Analysis
Payroll fraud analysis compares payroll records against HR files, bank payment data, and system access logs to identify ghost employees, inflated wages, and fraudulent commission claims. Our experts quantify total losses and identify control failures that enabled the fraud.
Our Methodology
| Phase | What We Do | Deliverable |
|---|---|---|
| Data reconciliation | Match payroll records to HR employee files, NI numbers, and bank account details. | Reconciliation report identifying anomalies |
| Ghost employee detection | Identify fictitious employees, duplicate NI numbers, and bank accounts linked to existing staff. | Ghost employee schedule with payment history |
| Pattern analysis | Analyse wage changes, overtime patterns, and commission claims for manipulation. | Fraud pattern analysis report |
| Quantum & report | Calculate total fraudulent payments including employer NI and pension contributions. | Payroll fraud quantum report |
Frequently Asked Questions
How does a forensic accountant detect ghost employee fraud?
Ghost employee detection involves comparing payroll records against HR employee files - identifying employees with no HR file, duplicate national insurance numbers, or bank accounts linked to existing staff. Forensic accountants also analyse when ghost employees were added and who had payroll system access.
Does payroll fraud quantum include employer NI and pension contributions?
Yes. The total loss includes all payments made to ghost employees or through inflated wages, plus employer national insurance and pension contributions improperly paid on fraudulent wages.
Need a forensic accountant for employee fraud?
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