What is Ghost Payrolling and How to avoid it?

Ghost employee fraud occurs when a company pays wages for a person who does not actually work for that company. That employee is a ‘ghost’ in the system. Many times the easiest way to complete the scheme is for payroll to be centralized with too many locations for every employee to be known by management or accounting personnel. Simply add personnel information to the system and wages are paid out to an employee who does not actually exist. This can cost a company millions unless routine and simple safeguards are implemented.



These ghost employees can be fictitious or real people who have their names used by a fraudster.  The fraudster has to have access to payroll at least once. Usually the fraudster is in payroll with very few overseers who check and double check for fraud. Most ghost employee fraud involves someone within payroll. Either they are the fraudster or they are the accomplice.

The hardest aspect of this type of employee fraud is getting the money from the ghost’s account to the fraudster. Presumably, the criminals wouldn’t use their own name as that would limit the checks a single company can issue to them but also would lead the authority’s right to their door.  Following the money trail is how most employee fraud is detected.

Direct deposits can significantly reduce the chances of ghost employee fraud as it requires a checking account in someone’s name.  You can hire a business consultant that has third party payroll services to do this.  In addition, direct deposit means a forger cannot simply print up their own checks to pass off as genuine.  However, if the payroll staff is not diligent in comparing bank accounts, addresses, Social Security Numbers, and names, then a fraudster may simply assign multiple employee deposits to the same bank account.

Another easy method of reducing the risk of ghost employee fraud is manual delivery. Periodically hand-delivering paychecks allows payroll to assign a face to the account and also eliminates fictitious workers. If all paychecks have been passed out to the people who actually attend the company and a stub is leftover, then you know you have a ghost in the machine.

Look for paychecks without deductions for tax or Social Security. The fraudster is looking to make the most money. Therefore, they rarely set up the ghost account with Social Security or taxes withheld.

Finally, look for higher labor cost than budgeted. If you have five employees making $500 a week but you pay out more than $5,000, you might want to investigate as the budgeted labor costs are routinely exceeded.

Payroll preparations, their disbursement, and their distribution should be separated from each other. Essentially, a three-tiered system of checks and balances to prevent one person from holding all of the power and burden for fraud detection should be in place. What one section may miss another could pick up.

Overall, with diligence and common sense, you can guard yourselves and your company from ghost employee schemes.


Matthew Walden is a partner at Infinity Consulting Solutions (ICS), one of the top IT staffing agencies in New York City.  As an expert in the recruiting field, Walden offers over 20 years of expertise.  If you would like to reach out to him send him an e-mail at matthew@infinity-cs.com.

Contactless Payments Coming to London Buses

Transport for London has introduced contactless payments as a new way for travellers in the capital to pay for bus fares. The technology has been installed in the city's fleet of more than 8,500 buses, and it is hoped that the new method of payment will make transactions quicker and easier [1].

The New Technology



Contactless payments use a technology called NFC (Near Field Communication) to complete small value transactions. NFC readers are low-power transmitters that create a small electromagnetic field. When an NFC enabled chip is passed in front of this field, the reader is able to power the antenna inside the chip and transfer data to and from it. Bank cards which support contactless payment can use NFC to make quick, small payments which do not require Chip and PIN. When completing a transaction, customers simply lay their bank card flat on the NFC reader and, within seconds, the display will show that the amount has been deducted from the card. If the customer does not have enough money on their card, a red light will flash and they will have to find an alternative way to pay.

Easy and Convenient

The new contactless payment option will benefit casual and regular bus travellers, as well as bus drivers. The amount of time it takes to complete a transaction will be significantly reduced if more passengers use the new technology, and drivers won't have to spend as much time handling cash. Visitors and tourists to the capital can be intimidated by the busy transport network and the many different travel card and payment options available, so the convenience of being able to pay for a fare with a quick swipe of a card will come as a relief to many. For regular commuters, contactless payment can be a handy alternative if they don't have time to top-up their Oyster card or if they have forgotten it. Also, the cost of a single journey fare ticket is reduced from £2.40 to £1.40 if contactless payment is used instead of cash [2].

A Secure Way to Pay

Transport for London tested the new technology extensively before the roll out, and they are assuring passengers that it is completely safe and secure. Contactless payments use the same protection and safety measures as other card transactions, and in the unlikely circumstance that something does go wrong, customers will be able to seek compensation from both their bank and Transport for London.

Plans are under way for contactless payments to be integrated in the tube, tram and London overground networks. It is anticipated that Transport for London will save millions every year on reduced cash collection costs with the new technology, and customers will greatly benefit from the convenience of the new payment option.

Sources:
[1] http://www.bbc.co.uk/news/uk-england-london-20715092
[2] http://www.tfl.gov.uk/tickets/26416.aspx

This post has been supplied on behalf of payment processing provider, First Data Merchant Solutions.

Car Title Loan Is the Easy Way to Meet Your Urgent Financial Needs

Finance plays a vital part in everyone’s life. It becomes more valuable when you face some emergency situation and you are short of immediate cash. You seek for ways to help you get the required cash at the earliest. One such means it the car title loan, which is most beneficial in such times. If you own a car in good condition, then there is a possibility that you get a good amount of funds, merely by handing over the car title document to the lenders till you pay off the loan.

What is the difference in car title loan and other finance payments?

In this particular advance, a borrower receives money much sooner unlike in the other loans, which at the least take few days. Lenders of this loan make sure that the documents that you submit are genuine. There is no hassle of papers or any of your finance accounts to be verified. It is a type of surety loan, so the moneylender does not have to worry about any defaults in repayment. Negative factors while applying for a loan like bad credit history or lower monthly income doesn’t have any significance.

Papers and items needed to have this loan:

• Car ownership papers
• Driving license or any state ID card of the borrower
• Showing of the vehicle used as collateral
• Your income slips

Benefits:

• It comes in handy when you need fast cash for your requirements.
• No extra papers required to fill up the form and for verification purposes.
• You will receive the money in few hours.
• You can drive your vehicle even when it is kept as collateral property.
• Lenders pay minimum fifty percentage of the cost of the vehicle.
• You don’t need extra eligibility like income tax papers when compared to loans.

You should be quiet cautious while choosing a reliable financial company and find out all the options available with them. You could refer to their websites to give you valuable information about them and based on what satisfies you, you can choose the lender. The positive reviews of other borrowers will give you a better idea about the company. If you are in a hurry and want to skip the time running around from one office to another, then apply for the funds online.

You must be at least 18 years of age or above, and should have clear title. The company will keep the title papers till the repayment is done in the fixed period. The interest rate is little high than other lends, but it is suitable if you are sure of your pay back in time. Once you pay the borrowed funds, you will get your car documents back.

No loan comes for free of charge. It brings added responsibilities. It is best to pay it back as soon as possible to lessen your financial burden. The same applies with car title loans. If you are unable to pay the amount back in the fixed period, then the interest will double up. It will go on increasing till you adhere to your repayment plan. It is a better option than payday loans, as it charges less interest and gives more number of days to repay the funds. Besides, the amount lent in such a credit is way more than the payday loan, almost 50% of the cost of your vehicle.

In some cases it is seen that financial companies give maximum of one year to repay the loan without any penalty. This gives you plenty of time to bring your financial life back in order. It can be repaid on installment basis as per you wish.

Advantages and Disadvantages to an IVA

Image Source: flickr

The Individual Voluntary Agreement, or IVA, has just reached its twenty-fifth birthday, after being introduced in 1986 as a type of debt management solution. Available to people in England, Wales and Northern Ireland, IVAs can help debtors escape insolvency. They are designed to assist people with unaffordable, out-of-control debts by arranging a reduced monthly payment plan with creditors.

More details about IVAs

IVAs are legally binding, but they are generally considered to be a more attractive insolvency scheme than bankruptcy. If followed properly, IVAs can support you in clearing your unsecured debts by providing you with the opportunity to make lower monthly payments into the managed IVA scheme, for an agreed period of time, which is usually five years.

Provided that you stick to the arrangement, which typically means honouring a reduced-rate monthly repayment plan, the remainder of the original debt will be written off at the end of the term and you'll be free from unsecured debt. The scheme is designed to assist people who owe significant levels of unsecured debt to a number of lenders who they cannot afford to repay. It's essential that you are still able to meet the new, reduced payments each month and commit to the scheme for five years. The agreement is legally binding and will be managed by an insolvency practitioner.

What are the benefits of an IVA?

There are several key benefits. An IVA can freeze the interest on your debts, which can otherwise mount up. It also protects you from further action or legal intervention from your lenders. This can greatly relieve pressure. It also allows you to avoid experiencing some of the more challenging aspects of bankruptcy, which can include the repossession of your property. It also means that you have a clear date for becoming debt free, which is usually a five-year period and you only need to deal with one scheme and one IVA company, rather than an array of lenders.

Are there downsides to an IVA?

With all insolvency schemes there are important points to consider. First, you may find that you're obliged to release equity from your property in month 54 of the IVA arrangement. You will also be prevented from taking out additional credit during the IVA period. You'll be forced to enter bankruptcy if you fail to adhere to the agreed conditions and terms of the arrangement, in which case your IVA will fail. Your IVA will also stay on your credit record for a year after it has finished, which can make it difficult for you to obtain credit.

If you feel that this scheme is appropriate for your requirements, you can find a company who provide IVAs pretty easily, as there are plenty of online and high-street firms offering such services. It's worth asking at your citizen's advice bureau for advice before entering into an IVA.

What next?

As with any kind of debt solution, it's essential that you get advice that is relevant to your situation. Speak to a qualified debt adviser and find out whether you meet the terms and conditions of the scheme. Check too that you understand the full implications of taking out an IVA and seek a reputable organisation with good feedback to manage the scheme for you.

Written by writer of a company who provide IVA's.

Improve Your Website, Get More Sales

Recent studies have revealed that many small businesses do not pay enough attention to their website, mistakenly believing that once it had been set up, nothing more needed to be done. How wrong those hapless business owners are!

In times such as these, when most people are finding their economic situation is a little more taut than usual, it is crucial for businesses to do all they possibly can to engage, attract and facilitate sales. With increasing use of smart phones and other internet-enabled mobile devices, the company website is more important than ever, thus it must be used to its best advantage.

Remember that a website is in effect the shop window. If it’s slow or difficult to navigate, potential customers will be put off and go elsewhere. Don’t fall at the first hurdle – make sure you are using a fast internet service. Consider switching to a cloud-hosted service which could guarantee quicker speeds and reduced latency.

Next, consider your website’s design. Is it attractive and clear? Or does it bombard browsers with information? Think about simplifying the site, organising content into separate pages. Big blocks of text on a landing page can really put people off, so think about revising your wording. More detail on specific products can be added on a related page.

Work through your site as if you were a customer wishing to buy a product or service. How easily can you progress from item description through to check out? Is it clear or convoluted? You really need to make sure there is nothing obstructing this part of the process. Is easy for people to pay and are there sufficient options available? Using financial merchant services to improve your online payment facility – allowing for several different payment methods and accepting international ones – could make a real difference to your bottom line.

Lastly, for the sake of improving your Google search rankings and reputation as a ‘brand leader’ you must add fresh content regularly. This could be a blog, news items, photos, etc. Don’t forget to include links and sharing buttons to the business’s social media profiles (or set up, if as yet non-existent).

Take advantage of technological advancement and its increasing integration into every day life: let people shop on your site easily while they sit on the train or wait in a queue for the cinema. People can shop any time, anywhere, so make sure you have a website which can accommodate.

Author Bio: Jack Anderson has spent most of his life in the financial industry. He is an expert in developing and implementing strategies in leadership development, operations, marketing and sales.  He also deals with payment management, online payment as well as e-business. To know more visit http://www.firstatlanticcommerce.com/