Ghost employee fraud is a fraudulent activity in which an employee adds fake employees to payroll and directs payroll disbursements to their bank account. This can occur in government contracts or jobs when government employees direct payroll to government employees who actually are not working on that job.

Organizations put many controls in place to prevent employee fraud. However, one of the best ways to detect employee fraud is to see if multiple payroll deposits are made to the same bank account.

If you are working for a government organization and suspect ghost employee fraud, contact the Qui Tam attorneys of Tycko & Zavareei, LLP, at 202-973-0900.