Payroll fraud impacting on SA SMEs



PRETORIA – EXPERTS in the information and communication sector said payroll fraud was growing at an alarming rate among small and medium enterprises in South Africa as such companies neglected investing on payroll.

Yolande Schoültz, Risk & Fraud Management Division Manager at Sage VIP
Payroll & HR, said payroll fraud hurt the bottom-line at many South
African businesses, with SMEs suffering the most from this form of
white-collar crime.

“Payroll fraud happens most to businesses with less than 100 employees,
and it can seriously hurt their ongoing sustainability.

“It usually takes 18 months to detect payroll fraud, and it is usually uncovered by accident. By that time, a business could have lost a vast amount of money,” she said.

“Yet we don’t have accurate statistics because so few businesses prosecute
employees for this crime.”

Anton van Heerden, managing director for Sage VIP and Sage Pastel Payroll
& HR. said companies should as such put in place measures to address the

“Payroll fraud is one of the most common white-collar crimes in the
business world. For that reason, every managing and financial director
must put in place sound policies and processes to address this growing
risk,” van Heerden said.

According to research conducted by Alexander Forbes in 2011, payroll fraud
costs South African business more than cash-in-transit heists.

– CAJ News








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Posted by on Aug 14 2014. Filed under Featured, Finance, Finance & Banking, IT Security, Software, Technology. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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