Close Menu
ZidduZiddu
  • News
  • Technology
  • Business
  • Entertainment
  • Science / Health
Facebook X (Twitter) Instagram
  • Contact Us
  • Write For Us
  • About Us
  • Privacy Policy
  • Terms of Service
Facebook X (Twitter) Instagram
ZidduZiddu
Subscribe
  • News
  • Technology
  • Business
  • Entertainment
  • Science / Health
ZidduZiddu
Ziddu » News » Business » A Ghost Employee – The Scariest Kind
Business

A Ghost Employee – The Scariest Kind

John NorwoodBy John NorwoodFebruary 10, 20224 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
A Ghost Employee – The Scariest Kind
Share
Facebook Twitter LinkedIn Pinterest Email

A new but old buzzword has entered the corporate vernacular. A company gets “ghosted” or was subject to a ghost employee. The haunting reference is to an employee who suddenly, without notice, fails to show up for work. Or fails to respond in the remote work environment and abandons employment. Other applications describe when a new hire has been made a job offer, then inexplicably, never appears.

Perhaps the employee feels they were mistreated and is never to be seen again. Apparently, the term has been borrowed describing a disappearance or unexplained event. Coincidentally, some potential employees claim an employer actually “ghosted” them, by not fulfilling a job offer. The phrase is clever and to the point.

The more ghoulish term of a ghost employee has been used by certified fraud examiners for a number of years. The effects have ruined companies and non-profits. Caused financial ruin that is. It creeps up on an organization and is often overlooked by typical internal controls. This older reference is that of an “employee,” who does not work for an entity but is receiving a paycheck. Let that sink in for a moment. What, how? Run that by me again. Oh, and the person may be real or fictitious. The only common denominator is again they don’t work for you.

The investigation world explains that the broader category is payroll fraud. A ghost employee is but one type of payroll fraud. So, the ghost employee is added by someone with access or outright by a payroll manager. At times the ghost is a real person. Perhaps a relative of the offender. A direct deposit is made into a bank account, then drawn on. In the case of a fictitious person, monies may be applied to a pay card or an old-fashioned paper check mailed.

The phenomenon has escaped the oversight of many companies – some very sophisticated companies. Normally, funds for payroll are separate from standard operating accounts. Consequently, they may not be examined as closely. The fraud usually starts slowly, without causing any initial red flags. It may start, then stop for a period of time. The fraudster is testing the waters for detection. They initially may have an explanation for the “error.” Understand they are very clever and having a story ready to tell, can fool the best. Like most other frauds, it swells and becomes more and more brazen. When and if its discovered (18 to 30 months later as an estimate), the devastation can equal bankruptcy.

The bankruptcy reference is very real. Another viewpoint? Imagine you’re in perfect physical health one day and 24 months later, you’re declared terminal or incurable. You may die in a few hours or a few months. There is a remote chance of survival with a massive series of transplants (cash infusion), but if you’re poor, leveraged or have few resources, forget it. Make out your last will and testament and thank those who have worked for you. For the business owner the reality can hasten their demise.

In the southeast US, one executive stated that six more months of the fraud would have put them out of business. The operation was able to recover, due largely in part because of a strong customer base. However, extreme damage was done. Over $1M was lost. Sadly, its money that will never be recovered. $1M + that will never enter the economy – legitimately that is. The employees of the company had been waiting to hear about an annual pay increase. It never came.

One particularly clever payroll manager correlated a payroll fraud with great subtlety. How? We don’t even want to put it in print for fear of the unscrupulous getting any ideas. In another case, an employee retired and died before the fraud was ever discovered. Her employer actually did audits, unfortunately not the right kind. The modern payroll schemes pale in comparison to past workers punching one another’s time card.  

The previous medical analogy is highly appropriate for the small to mid-size business. In keeping with a medical theme, get a second opinion. Hire a third-party to conduct special investigations. It may divert disaster. Today’s reference of a “ghost employee”, does not mean the same as those involved in payroll fraud. The scariest kind of all.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Previous Article4 Basic Home Appliances That Actually Make Your Life Better
Next Article India’s largest Influencer Marketing Platform – Grynow
John Norwood

    John Norwood is best known as a technology journalist, currently at Ziddu where he focuses on tech startups, companies, and products.

    Related Posts

    Six Platforms For Mock Interviews

    June 18, 2025

    The Top Legal and Financial Mistakes That Derail Growing Businesses (and How to Avoid Them)

    June 11, 2025

    Debunking Common Misconceptions About High-Rise Living

    June 10, 2025
    • Facebook
    • Twitter
    • Instagram
    • YouTube
    Follow on Google News
    2025 Google Ads Checklist to Maximise Results
    June 21, 2025
    Healthy Condo Habits for the Whole Family
    June 21, 2025
    How Award Plaques Boost Morale in the Workplace
    June 20, 2025
    Streaming with Just a Smartphone: What You Need
    June 20, 2025
    The Sleep Revolution Starts with Bamboo: Why Adorearth Is Redefining Bedding in Australia
    June 19, 2025
    Why Italy Is the World’s Most Romantic Backdrop for Life-Changing Moments
    June 18, 2025
    Six Reasons You Should Invest In Home Security Tech
    June 18, 2025
    Six Platforms For Mock Interviews
    June 18, 2025
    Ziddu
    Facebook X (Twitter) Instagram Pinterest Vimeo YouTube
    • Contact Us
    • Write For Us
    • About Us
    • Privacy Policy
    • Terms of Service
    Ziddu © 2025

    Type above and press Enter to search. Press Esc to cancel.