Imagine a place where mysterious people move unseen, signatures appear out of nowhere and you are troubled by a nagging feeling that something is not quite right. No, it’s not a haunted house. It’s your business, or at least it could be if you are unfortunate enough to be the victim of a special type of fraud called “ghost employees.”
Who Are Ghost Employees?
Ghost employees are not actually employees at all. They have names and receive paychecks but do not really come to work. They are fictitious creations made by a real employee who then pockets their real money every payday.
How To Know if You Are a Victim
Do the following to determine whether you have been a victim of a ghost employee scheme:
- Create an opportunity to meet all your employees face-to-face, and determine whether any are missing.
- Check payroll documents for irregularities.
- Check bank statements to see if any paychecks have been signed over to someone else.
- Give special attention to records kept by managers or payroll employees whose work is generally unsupervised.
A study reported by the insurance firm www.wwspi.com/ found 27% of businesses were impacted by a ghost employee scheme. If you discover you are one of them, you won’t need an exorcist to cast out your ghosts. You will need crime insurance. A good policy can be like a night light to keep the ghosts away.