Chapter 12: Payroll Fraud and Fraud Detections Methods in Nigeria

Abstract

As said earlier, fraud is perceived to be different facets. It is any act or action in which the legal element of fraud: Intention, false representation, material facts and harm are present. Thus, payroll fraud is a type of fraud perpetrated through the payroll system of the company. It is done by deliberate falsification of payroll contents to make an employee get what he/she suppose not to receive or get more that what he/she should have gotten. Accounting Tools (2019), described payroll fraud as “the theft of cash from a business via the payroll processing system”. The article mentioned “advances not paid back”, “buddy punching”, “ghost employees”, “paycheck diversion”, “pay rate alteration” and “unauthorized hours” as types of payroll frauds.