Payroll fraud - Australia's quietest crime

PAYROLL FRAUD AUSTRALIA’S QUIETEST CRIME  

Tracy angwin

When do you notice payroll?  

Red flag – Financial pressure  

Red flag – Unexplained wealth  

Red flag – addiction  

What does a payroll fraudster look like?  

This is a payroll fraudster  

Clive peeters payroll fraud  •  Sonya Causer •  $125,000 salary •  38 years old •  $19,365,768 in 125 payments •  Transactions between $64,941 and $572,000 •  Purchased 44 properties in 18 months •  Four luxury vehicles •  $17,000 jewellery •  $3m shortfall •  8 year custodial sentence (5 year non parole) •  Got a payroll job while on bail

Sceggs Redlands  •  Alison Barbour •  Payroll officer, 45 years old •  6 years •  $1,000,253 fraud •  Discovered following confession •  Used past employee records and set up fake teachers •  Directed funds to her bank account •  Recently separated from husband •  $378,000 recovered •  Sentenced to 15 months weekend detention

Most payroll fraud is unreported  

Tips to avoid payroll fraud  

technology  

Data is to the digital economy, What oil was to the industrial economy

Consider  •  Casual skimming •  Bank account changes •  duplicate Tax file numbers •  duplicate bank account numbers •  Missing data (addresses, phone, email) •  Audit reports •  Ghost employees

processes  

Consider  •  Time theft •  Leave theft •  Governance and risk •  Authority levels •  Spot checks •  Paper trail – compare to source files

people  

Consider  •  Large leave balances •  Criminal checks •  Understand background •  Integrity •  Working late •  Old logins

Mediocrity is Fraud’s best friend  

Payroll fraud audit 50 data detection tests

Process risks

Audit trails

Data analytics

Payroll compliance audit Technology

Outdated or poorly configured technology

Manual systems and double handling of data

People

Knowledge and capability

Positions and Authority

Processes

Governance, compliance & overpayments

Inefficiency in processes

Payroll fraud  •  Is detectable •  Can have catastrophic consequences to business •  Is preventable •  Is Australia’s quietest crime

Contact Australian payroll association  

www.austpayroll.com.au +61 2 9818 1931