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THE FRAUD MATRIX

Employment & Payroll Fraud (Ghost Employees & Shell Companies)

Criminals create fake employees on payroll or shell businesses to siphon money, commit unemployment fraud, or launder funds. Regular people are sometimes recruited as the 'face' of these schemes.

  1. Hire

    A person is added to payroll for work that does not exist.

  2. Inflate

    Hours, rates, or ghost employees inflate paychecks over time.

  3. Divert

    Checks are cashed to accomplices, family, or shell LLCs.

  4. Layer

    The payroll fraud ties into tax, workers' comp, or benefit claims.

  5. Audit

    IRS or DOL review of the business surfaces the phantom payroll.

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Employment & Payroll Fraud (Ghost Employees & Shell Companies)

Have you ever been placed on a company's payroll or received regular payments from a business where you did little or no actual work?