Unfortunately, many companies during COVID-19 may be having issues with time theft and it becomes more difficult to keep track of if workers are working remotely. Some ways to help control time theft include keeping in depth records of what employees are working on each hour of their workdays and requiring deadlines to help control their time spent on tasks.
During this pandemic, companies are looking at cost cutting now more than ever. Payroll fraud results in large losses that most companies can’t afford, especially in our economy now. Here are some steps to take to prevent unlawful activities in your business:
- Hire Trustworthy Employees: Invest in background checks and look for any red flags.
- Monitor Timesheets: Have managers and supervisors spot-check throughout the workweek that recorded times are accurate before making payroll submissions.
- Update Handbooks: Company handbooks may need to be updated to reflect any changes this pandemic has caused for the company, like implementing remote work rules and making it clear as to any penalties for violations.
On another note, protecting yourself against external payroll fraud is something you also need to stay up to date on. It is very important that you stay up to date on your clients’ situations. How is there business doing, especially in a time like this?
Payroll is very risky and by processing payroll for your clients, you open yourself up to certain vulnerabilities and risks. For current clients, be sure you are performing frequent financial checks on them, asking for their financials, P & L’s, etc. If you are accepting new clients for payroll be sure you are running background checks, that you know the client personally or have a working relationship with them and have visited their office. Do not initiate direct deposit from any customers you do not know.
Finally, do not take any customers who only sign up through the internet. Scam artists sign up for direct deposit and want to process a payroll immediately with the intention of doing more transactions in the immediate future. The checks they sign up to debit have been forged and are not valid accounts. The payroll gets deposited on a payroll card and then the debit transaction returns leaving the payroll processor holding the bag. The funds deposited cannot be retrieved as the scammer immediately retrieves the funds from the cards. Please be wary of these attempts to scam you.
Some red flags that we have noticed are as follows:
- They are in a hurry to process the payroll and need it done ASAP
- They signed up for your services online
- The payroll (so far) have all been whole dollar amounts ($2,000.00, $2,500.00 etc.)
- The monies are deposited on a payroll card
Gulf Management Systems is available Monday through Friday 8:30 AM to 5:00 PM EST to answer any questions or concerns you may have and are also available via email at Operations@GulfManagementSystems.com. Let GMS, the real ACH experts, help you save money, streamline your business and help you THRIVE!
