Employee timesheet fraud is an issue facing many businesses in today's society. For example, an employee may put in time they don't have a job, sometimes getting away with it and getting paid for it.

Your company relies on the loyalty and honesty of your employees—and therefore, you usually give them the benefit of the doubt. But are they honest? This article will help you understand what timesheet fraud is and how to deal with it.

timesheet fraud

Part 1: Types of Timesheet Fraud


Entering and/or approving incorrect data is one of the most common misuses of attendance information. If done carelessly, it can expose employee carelessness, flawed processes, and lack of management controls, but if done deliberately, it's simply fraud. It is the responsibility of the employee to enter correct attendance data, and the responsibility of the supervisor to prove that this information is indeed correct. While we all expect most employees to be hardworking and honest, unfortunately, experience shows that this is not always the case. Listed below are some of the most common ways employees commit timesheet fraud.

1 Inflated Working Hours


With timesheets, it is easy for employees to enter wrong start and end times and inflate or round to the nearest time. Overpayment occurs when employees are paid based on falsified hours or rates.

what is timesheet fraud

2 Incorrect Data Entry


If employee attendance data has to be re-entered into the payroll system from timesheets or time cards, it is easy for dishonest employees to change the numbers. In addition to being vulnerable to fraud, this type of process is also prone to spelling mistakes and mistakes. The fewer times you need to re-enter time and attendance information, the more accurate your data will be, and the more accurate your payroll will be.

data input error

3 Nepotism


This type of fraud occurs when a manager favors a colleague, relative or friend, by assigning them to a specific task over other employees, who can also work and may be a more cost-effective option. For example, if there is a service engineer job who also happens to be a dispatcher buddy who is assigned to this job despite already working overtime, your business risks paying unnecessary time and half the cost to do it item work.

Nepotism

4 Errors Due to Late Completion of Timesheets


While not technically fraudulent, inaccuracies often arise when employees fill out timesheets after working those hours for weeks or months. Supervisors then sign off on those timesheets, when in fact it's unlikely anyone can 100% guarantee that those hours are dedicated to supervisors who are in charge of large teams.

Errors Due to Late Completion of Timesheets

Part 2: How to Prevent Timesheet Fraud?

While a strong policy outlines the rules, it may not prevent time card fraud by itself. You need to ensure that the policy is followed and take action steps to ensure that every employee is paid for the hours they work, not more. Here are some available options:

Method 1 Using GPS and Mobile Attendance


Wasting time online is a form of timecard fraud that worries businesses in several ways. Employees who go online during business hours can waste hours of paid time. Many companies use the GPS technology of mobile devices to monitor the current location of employees, or use GPS technology to locate and clock in employees. This allows the company to know at any time whether an employee has been working on the job.

mobile attendance

The location system periodically checks the location of employees to ensure they are not in non-working locations. They also show whether an employee's location has changed during the day. For those who clock in but don't do anything, location changes beyond the scope of work can be very revealing.

Note

The legality of workplace surveillance depends on various federal and state constitutional provisions and laws regarding when employees have the right to privacy and whether and when employers must notify them that they are being monitored.

Method 2 Monitor Schedule


Many employees manually or online submit timesheets that go directly into payroll processing, which can lead to errors and fraud. Timetables should be monitored to ensure that hours worked are consistent with planned hours, including any vacation time employees use during pay periods. Making sure the filing time is correct is the first step in making sure the company doesn't pay more than it should.

minitor schedule

Method 3 Enforce Manager Approval


Your timesheet fraud policy should emphasize that management and supervisory personnel must verify timesheets and be held accountable for any errors or omissions. For most workers, managers should approve timesheets before submitting payroll processing. This practice should be more than a checkmark. It is the manager's responsibility to ensure that the time of submission is accurate. Your timesheet fraud policy should emphasize that management and supervisory personnel must verify timesheets and be held accountable for any errors or omissions.

enforce manager approval

Method 4 Compare Time Cards


If some employees always seem to have different schedules than their peers, it might be time to investigate. They may be the go-to person to always cover for others when they call, or they may fill their sheets on a regular basis. While different categories of workers have different hours per shift, similar workers should all clock in at roughly the same time.

compare time cards

Method 5 Use A Timing System


If you have the ability, create some type of online or even manual system to clock in and out. It could be as simple as a sign-in form on a manager's desk requiring a supervisor's signature, or as complex as an online system. If you are using a high-end computer system, make sure that employees must log in from their own workstations, not at home or allow other employees to use their login credentials to start or stop the clock.

timing system

Some larger organizations have physical clocks that employees use to clock in and out. Often, these companies can't get managers to monitor the clock at the start and end of shifts to ensure employees are only clocking their own timecards, not "buddy clocks."

Method 6 Install Cameras Or Other Surveillance


While you don't want to monitor your employees 24/7, some monitoring may be necessary. For video feeds, don't place cameras in lunch/lounge or bathroom facilities, but you might consider placing them towards doors in these areas. That way, the privacy of your employees won't be violated, but you'll know how long they've been there. If you want to install cameras or video surveillance, you should include HR and legal professionals in the earliest stages of consideration. Employers implementing monitoring in the workplace should strive to develop company-wide solutions that are clear, easy to understand, and do not reduce morale.

install cameras

Some systems are easy to install. Your home doorbell monitor shows when visitors arrive and leave: For small businesses, this type of system not only ensures you know who's near your property, it also helps you monitor when employees are in and out of work.

[Bonus Tips] The Best Way to Change GPS Location

For some companies that use GPS positioning technology to track employees, is there a way to cheat the GPS positioning function of the system? The answer is yes. Technically speaking, GPS positioning systems utilize the GPS positioning capabilities of employee devices to locate employees. Knowing the reason, it's easy to deceive it. I found a powerful location spoofing tool software—iMyFone AnyTo. It can solve all the troubles caused by GPS positioning technology. Simple operation, let you 1-click to change the position.

anyTo product

Change GPS Location on iOS/Android

  • Change the location of your GPS to anywhere in the world.
  • Plan a route and move on it at a customizable speed. Search for a specific destination, which is friendly for AR game lovers(Like Pokémon Go).
  • It works very well with location-based apps like Tinder, Snapchat, Grindr,LinkedIn, popular social media platforms, etc.
  • Be compatible with both Android as well as iOS phones.
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A video & step-by-step guide on how to change your location for iOS & Android devices.

spoof Ingress/Ingress Prime on iOS and Android

Step 1: To start using this location spoofer, just go to the official website of iMyFone AnyTo. Download the package from there, then install it.

launch anyto application

Step 2: Connect your device to the PC.

connect device to pc

Step 3: Select Teleport Mode from the top right corner of the screen. Select the location, and enter the location you want to change location to fake.

select a destination

Step 4: After selecting the fake location, just click the Move button. All apps on your device that need to be located will now switch entirely to your fake location.

successfully fake your iphone GPS location

With this app, all you have to do is sitting in comfort as your avatar does the walking for you. Brave all sorts of climates and terrains all from the comfort of your home.

Pros

  • Change the GPS location with one click.
  • Preserve privacy while all apps still work flawlessly.
  • Choose to speed up or slow down your walk on yourself.
  • Plan imaginary journeys with multipoint mode on the route planner.
  • Compare with other software in the market, it is more cost-effective.

Cons

  • Require additional permission steps for a successful installation for Android users.
  • Based on PC or Mac, so your phone or tablet must remain connected to the computer.

Conclusion

Timesheet fraud is troubling, not only because companies lose money, but because breaches of trust occur. While it may not be possible to completely eliminate payroll fraud, there are certainly ways to minimize abuse. But some cheating software, such as iMyFone AnyTo, is not just designed to cheat the location attendance check-in, but more to help people with inconvenient activities to complete the unrealizable location movement, doesn't it sound great. Try it now!

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