What’s time clock or time card fraud? Properly, keep in mind that child from elementary college who was all the time attempting to determine a approach to change the grades on his report card? He’s nonetheless on the market. Solely now he’s an grownup, and he’s attempting to determine a approach to rip-off his firm time sheets. He’s including to his pocket and taking away out of your backside line within the course of.

Whereas most workers are trustworthy, there are often just a few you may need to preserve your eye on. In relation to time clock fraud, even padding every work day with only a few further minutes provides up.

For instance, let’s say you pay somebody $10 an hour 40 hours per week. Unbeknownst to you, he additionally claims two hours of additional time (that he didn’t earn) every week.

With additional time on the time-and-a-half price of $15, you’re paying an additional $30 per week. That might add as much as $1,560 a 12 months. Multiply that by a pair folks, and also you’ve acquired a significant issue in your arms.

The chance for time clock fraud exists and sadly some workers will attempt to revenue out of your loss. Your job is to remain one step forward of any potential deception.

Listed here are 5 widespread methods your workers can dupe your time and attendance system.

1. Buddy punching

If your organization nonetheless depends on machine-stamped time playing cards, it’s possible you’ll be prone to time card fraud. For all the good work your workers do, some could also be inclined to ask a good friend to punch their card for them once they’re working late. And when their teamwork goes unnoticed, this could rapidly turn into a expensive behavior.

2. Inflating work hours

With paper-based time recording methods, it’s straightforward sufficient for workers to write down down that they got here in at 8 a.m. once they actually got here in at 8:45 a.m. or to report that they labored till 6 p.m. once they really left at 5 p.m. on the dot.

Except your organization has attentive managers who’ve the time and diligence to double-check, you possibly can be paying workers for work hours they didn’t earn.

Even with machine-stamped time playing cards, folks discover methods to inflate hours – typically ready to clock out lengthy after they’ve stopped working. If your organization coverage is to spherical as much as the subsequent quarter-hour, even deliberately clocking out at 5:01 should buy 14 minutes of additional work credit score every single day. In a 12 months, that would add as much as a whole further week’s value of pay.

3. Unscrupulous information entry

In case your attendance information needs to be retyped from time sheets or time playing cards into a payroll system, a less-than-principled typist can simply change the numbers.

Along with outright fraud, this type of system is liable to typos and errors, and any handwritten time information are additionally on the mercy of legible handwriting.

The much less it’s a must to rekey your time and attendance data, the extra correct your information and the extra correct your payroll.

4. Favoritism

Although collusion with one other coworker will not be widespread, it occurs. For instance, if a venture is available in that have to be executed in a rush, would you hand it to Ellen, who’s already into additional time? Or to Dan, who has time to complete the job inside his 40-hour work week?

If the scheduler prefers Ellen, it’s possible you’ll unnecessarily be paying time-and-a-half to get that job executed. Now, granted, there could also be different components concerned. Possibly Ellen is extra suited to get the job executed proper. Possibly your time system doesn’t monitor hours in real-time and the supervisor didn’t know whose hours had been headed into additional time, however until you’ve got the info in entrance of you, there’s no approach to inform.

5. Human error

Although not essentially fraud, some workers fill in time sheets on the finish of their work interval – days and even weeks since they labored these hours. Would you precisely bear in mind how lengthy you took lunch two weeks in the past? In all probability not.

Recognizing time and attendance scamming

Coaching supervisors on methods to spot time clock scamming is usually your first protection relating to making certain workers are following time and attendance insurance policies. Whereas there’s nothing fallacious with being conscious of your workers’ arrival and dismissal habits, be cautious of changing into a micromanager.

You may keep away from doubtlessly deflating habits towards workers by counting on know-how to deal with the duty for you. In the event you’re not already doing so, think about implementing a key card entry system that tracks when workers enter and exit your facility. Whereas not foolproof, an automatic system displays worker site visitors and generates stories that you’d in any other case monitor manually.


You may keep away from doubtlessly deflating habits towards workers by counting on know-how to deal with the duty for you.

Safety cameras additionally show helpful on this space, permitting you to actively monitor workers with out making a state of affairs the place workers really feel they’re consistently being hovered over. In spite of everything, you’ve got higher issues to do anyway. Safety cameras additionally present a further goal by serving as a deterrent for undesirable friends (or your individual workers) who might commit a criminal offense at your online business.

Intervening and correcting conduct

Earlier than you intervene and try to deal with worker attendance points, guarantee you’ve got an organization coverage that addresses your time and attendance tips and potential penalties for time clock fraud. You might even need to make the acknowledgment part of your worker onboarding by having new workers signal the settlement whereas finishing new-hire paperwork.

You’re taking the time to rigorously vet all new hires. And as laborious as you strive to make sure an trustworthy workforce, some workers could also be tempted so as to add just a few extras hours to their paycheck. In the event you suspect an worker should still be going in opposition to firm coverage, privately handle the state of affairs, documenting the dialog and expectations going ahead. It must be burdened that falsification of time playing cards is stealing and isn’t taken evenly. Remind the worker that they need to not:

  • Clock in/out for different workers
  • Ask coworkers to clock them in/out
  • Change hours labored for a given interval

Even if you happen to can’t show an worker could also be falsifying their time sheet or having one other worker accomplish that for them, it’s possible you’ll discover that an worker is constantly getting additional time.

Your worker handbook ought to clearly state an additional time coverage to your group. In case your tips state that additional time have to be accredited prematurely, take that chance to counsel the worker for beforehand working unapproved additional time hours; though, the additional time should nonetheless be paid to the worker.

Disciplining the worker

Make no mistake, scamming time sheets is stealing. And as an employer, disciplining workers most likely doesn’t rank excessive in your record of issues to do.

One method is to tailor your corrective motion to match the severity of the violation. Is that this an issue that has been happening for a while? Possibly it was an trustworthy mistake. You might be able to present one-on-one counseling to the worker, growing a long-lasting relationship.

If verbal and written counseling actions fail, it’s possible you’ll discover termination to be the very best course. It’s all the time beneficial to observe your organizations corrective self-discipline course of earlier than reaching a choice to terminate an worker. Make sure you retain all documentation supporting the corrective self-discipline course of, together with insurance policies that had been violated, signed coverage acknowledgements, counseling information and any further documentation that can assist the termination.


Make no mistake, scamming timesheets is stealing.

In sure conditions, if any conduct has been egregious, an employer might decide they should transfer on to termination with out prior counseling. For instance, the individual answerable for processing payroll might have been deliberately altering information to supply workers with a special quantity of pay than they’re due.

For such severe issues, it’s essential to hunt authorized counsel earlier than appearing in your choice, as there could also be a hefty quantity of legal responsibility related to the termination. You’ll additionally need to discover if there’s some other delicate data the terminated worker had entry to which will have been misused or places different worker data in danger.

Mitigating the issue

Right now, a wide selection of refined, reasonably priced time and attendance methods may also help you reduce and even stop time clock fraud earlier than it occurs.

For instance, internet punching, cell punching and biometric methods that use hand and finger scans can stop a variety of issues. In the event you go the biometric system route, bear in mind that many places require further steps to adjust to legal guidelines surrounding using biometric know-how – don’t create a brand new subject searching for an answer.

Together with your due diligence out of the best way, you’ll discover that these methods extra precisely match the punching with a particular individual, a particular IP handle or perhaps a GPS location. They will additionally monitor essential information that helps supervisors and administration implement guidelines, see real-time workforce hours and be capable to schedule accordingly.

They will even combine together with your HR administration software program to attach scheduling with timekeeping and payroll. By eliminating the necessity to retype or switch data from one system to a different, you save time and go away much less room for human error. With this new-found time, you will get again to specializing in what issues most.