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December 20, 2025
Ultimate Guide to Payroll Fraud Detection
Payroll fraud impacts 27% of businesses and often goes undetected for 18–30 months, costing an average of $383,000 per case—with small and mid-sized companies most at risk due to weaker controls. Common schemes like ghost employees, inflated hours, and payroll tax fraud can distort financial performance, derail deals, and trigger legal exposure. Strong internal controls and AI-driven detection tools can surface anomalies in months—not years—protecting valuations, financing, and trust.
