Question

Give Four things that need to happen for ghost employee fraud schemes to work

Answer 1

Ghost employee fraud schemes involve creating fake employees to divert funds. Four things that need to happen for these schemes to work are: creation of fictitious employees, payroll payments, authorization and approval, and concealment.

Step-by-step explanation:

Ghost employee fraud schemes involve creating fake employees on a company's payroll to divert funds to the fraudster. Four things that need to happen for these schemes to work are:

1. Creation of fictitious employees: The fraudster must create fake employee records in the company's payroll system.
2. Payroll payments: The fraudster arranges for payments to be made to the ghost employees.
3. Authorization and approval: The fraudster needs someone within the organization to approve the payments made to ghost employees.
4. Concealment: The fraudster must cover up the scheme to avoid being detected, such as by manipulating financial records.

By following these steps, a fraudster can deceive a company and embezzle funds through ghost employee fraud.