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Ghost in the Payroll: How to Uncover Payroll Fraud

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4 months ago

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payroll

Many organisations don’t realise they are victims of payroll fraud; How do they find out?

JOHANNESBURG, South Africa, October 21, 2025/APO Group/ –The damage caused by payroll fraud and ghost employees is often catastrophic: large sums lost and additional spending in investigations and prosecutions. In many cases, the companies forgo legal actions and fire the fraudster, who often moves to a new business and restarts their crimes.

“Most companies unfortunately only uncover payroll fraud by accident. They don’t realise it’s happening, and it can cost them millions,” says Yolande Schoültz, founder of YSchoültz Attorneys | Conveyancers | Notaries, and an expert who has investigated many such cases.

Companies can avoid losing millions. Using methods such as monthly checks on hiring changes and annual face audits, facilitated by modern payroll platforms, they can reduce fraud risks and organically extend role-based oversight across different departments.

Why payroll fraud happens

Spotting payroll fraud is not difficult when companies are diligent, and with the right processes and precautions, they can avoid the risks of ghost employees and other related crimes.

Schoültz highlights several common ways that payroll fraud occurs. The best-known is to add ghost employees, which can be fake employees who don’t exist but also employees who were let go but never removed from the payroll. The payroll administrator instead keeps them on the books and changes the bank account details. Another scheme is to find employees who are paid irregularly, pay them monthly and direct the new payments to a different bank account.

These activities are relatively easy to uncover, but companies don’t pay attention because payroll operations are often isolated and arcane. One issue is who has oversight: is payroll part of finance or human resources? It should be both, with finance being primarily responsible. But payroll is often left alone. As long as people are paid, nobody asks questions.

How to spot payroll fraud

However, they should take an interest because payroll fraud can be extraordinarily damaging. According to Occupational Fraud 2022: A Report to the Nations, released by the Association of Certified Fraud Examiners (ACFE), 5% of company revenue is lost to fraud committed by employees.

There are amazing capabilities in modern payroll systems, such as automated reporting, remote administration, and alert systems that inform different stakeholders

Schoültz cites a case where a company lost over R7 million across several years through roughly 13 ghost employees: “It’s like a slow bleeding wound. The fraud usually extracts small amounts across multiple fake employees and over many years.”

In this case, the payroll administrator’s lavish lifestyle gave them away, with investigators asking how they could afford luxury cars, holidays, and other perks on their salary. Yet, a natural distrust of payroll staff is not healthy or productive, and there are better ways to find and prevent payroll fraud. The most effective method is requiring employees to physically present themselves.

“An annual face-to-face audit is very effective. Have people come with their ID books and match them to a payroll list. This must ideally be through an independent person, not from the company, because some payroll fraud is done in cahoots with several people. An independent annual face audit is the best way to know if there are ghost employees. It also works to check employee movements every month, to check the terminations and new hires.”

Responsibility and technology

It is also crucial that finance departments take payroll oversight seriously, Schoültz adds.

“People don’t know what they don’t know. A lot of times when I get called in to do risk assessments, it’s very rare that I meet the head of finance. But payroll is a finance-driven department. It is often the company’s biggest expense, yet it’s neglected.”

Many companies have the same question: is payroll oversight the responsibility of finance, HR, or someone else? Isolated payroll systems don’t resolve such questions, whereas payroll platforms facilitate role-based permissions allowing access to different teams. says Sandra Crous, MD of payroll provider Deel Local Payroll.

“There are amazing capabilities in modern payroll systems, such as automated reporting, remote administration, and alert systems that inform different stakeholders. You can expand and streamline payroll processes so that people in finance or HR have passive visibility over payroll events. Legacy payroll systems typically sit in a corner somewhere, with few people even knowing what’s going on there.”

A Little Diligence Stops Major Crimes

Not knowing has a price tag. According to the Chartered Institute of Payroll Professionals, local companies lose upwards of R100 million annually through payroll fraud—more than cash transit heists. But a little diligence can avoid such damage, says Schoültz.

“People just don’t check. They don’t have the know-how because payroll is really a very underestimated department in a company. People receive their salaries, but they don’t understand how that works. The last thing people actually have time for is the payroll. They just want their employees to get paid, but they don’t understand what is inside that system, and it continues like that.”

Distributed by APO Group on behalf of Deel Local Payroll, powered by PaySpace.

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As global power structures shift, Invest Africa convenes The Africa Debate 2026 to redefine partnership in a changing world

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February 6, 2026

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The Africa Debate 2026 will provide a platform for this essential, era-defining discussion, convening leaders to explore how Africa and its partners can build more balanced, resilient and sustainable models of cooperation

LONDON, United Kingdom, February 5, 2026/APO Group/ –As African economies assert greater agency in a rapidly evolving global order, Invest Africa (www.InvestAfrica.com) is delighted to announce The Africa Debate 2026, its flagship investment forum, taking place at the historic Guildhall in London on 3 June 2026.

Now in its 12th year, The Africa Debate has established itself as London’s premier platform for African investment dialogue since launching in 2014, convening over 800 global decision-makers annually to shape the future of trade, finance, investment, and development across the continent.

Under the theme “Redefining Partnership: Navigating a World in Transition”, this year’s forum will focus on Africa’s response to global economic realignment with greater agency, ambition and economic sovereignty.

The Africa Debate puts Africa’s priorities at the centre of the conversation, moving beyond traditional narratives to focus on ownership, resilience and long-term value creation.

“Volatility is not new to Africa. What is changing is the opportunity to respond with greater agency and ambition,” says Invest Africa CEO Chantelé Carrington.

“This year’s edition of The Africa Debate asks how we strengthen economic sovereignty — from access to capital and investment to financial and industrial policy — so African economies can take greater ownership of their growth. Success will be defined by how effectively we turn disruption into leverage and partnership into shared value.”

The Africa Debate 2026 will provide a platform for this essential, era-defining discussion, convening leaders to explore how Africa and its partners can build more balanced, resilient and sustainable models of cooperation.

Key challenges driving the debate

Core focus areas for this year’s edition of The Africa Debate include:

This year’s edition of The Africa Debate asks how we strengthen economic sovereignty — from access to capital and investment to financial and industrial policy

Global Realignment & New Partnerships

How shifting geopolitical and economic power structures are reshaping Africa’s global partnerships, trade dynamics and investment landscape.

Financing Africa’s Future

The growing need to reform the global financial architecture, new approaches to development finance, as well as the strengthening of market access and financial resilience of African economies in a changing global system.

Strategic Value Chains

Moving beyond primary exports to build local value chains in critical minerals for the green economy. Also addressing Africa’s energy access gap and mobilising investment in renewable and transitional energy systems.

Digital Transformation & Technology

Unlocking growth in fintech, AI and digital infrastructure to drive productivity, inclusion, and the next phase of Africa’s economic transformation.

The Africa Debate 2026 offers a unique platform for high-level dialogue, deal-making, and strategic engagement. Attendees will gain actionable insights from leading policymakers, investors and business leaders shaping Africa’s economic future, while building strategic partnerships that define the continent’s next growth phase.

Registration is now open (http://apo-opa.co/46b19gj).

Distributed by APO Group on behalf of Invest Africa.

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Zion Adeoye terminated as Chief Executive Officer (CEO) of CLG due to serious personal and professional conduct violations

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2 days ago

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February 6, 2026

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After a thorough internal and external investigation, along with a disciplinary hearing chaired by Sbongiseni Dube, CLG (https://CLGglobal.com) has made the decision to terminate Zion Adeoye due to serious personal and professional conduct violations. This process adhered to the Code of Good Practice of the Labour Relations Act, ensuring fairness, transparency, and compliance with South African law.

Mr. Adeoye has been held accountable for several serious offenses, including:

  • Making malicious and defamatory statements against colleagues
  • Extortion
  • Intimidation
  • Fraud
  • Misuse of company funds
  • Theft and misappropriation of funds
  • Breach of fiduciary duty
  • Mismanagement

His actions are in direct contradiction to our firm’s core values. We do not approve of attorneys spending time in a Gentleman’s Club. CLG deeply regrets the impact this situation has had on our colleagues and continues to provide full support to those affected.

We want to express our gratitude to those who spoke up and to reassure everyone at the firm of our unwavering commitment to maintaining a respectful workplace. Misconduct of any kind is unacceptable and will be addressed decisively.

We recognize the seriousness of this matter and have referred it to the appropriate law enforcement, regulatory, and legal authorities in Nigeria, Mauritius, and South Africa. We kindly ask that the privacy of the third party involved be respected.

Distributed by APO Group on behalf of CLG.

 

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The International Islamic Trade Finance Corporation (ITFC) Strengthens Partnership with the Republic of Djibouti through US$35 Million Financing Facility

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2 days ago

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February 6, 2026

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This facility forms part of the US$600 million, three-year Framework Agreement signed in May 2023 between ITFC and the Republic of Djibouti, reflecting the strong and growing partnership between both parties

JEDDAH, Saudi Arabia, February 5, 2026/APO Group/ –The International Islamic Trade Finance Corporation (ITFC) (https://www.ITFC-IDB.org), a member of the Islamic Development Bank (IsDB) Group, has signed a US$35 million sovereign financing facility with the Republic of Djibouti to support the development of the country’s bunkering services sector and strengthen its position as a strategic regional maritime and trade hub.

The facility was signed at the ITFC Headquarters in Jeddah by Eng. Adeeb Yousuf Al-Aama, Chief Executive Officer of ITFC, and H.E. Ilyas Moussa Dawaleh, Minister of Economy and Finance in charge of Industry of the Republic of Djibouti.

The financing facility is expected to contribute to Djibouti’s economic growth and revenue diversification by reinforcing the competitiveness and attractiveness of the Djibouti Port as a “one-stop port” offering comprehensive vessel-related services. With Red Sea Bunkering (RSB) as the Executing Agency, the facility will support the procurement of refined petroleum products, thus boosting RSB’s bunkering operations, enhancing revenue diversification, and consolidating Djibouti’s role as a key logistics and trading hub in the Horn of Africa and the wider region.

We look forward to deepening this partnership, creating new opportunities, and leveraging collaborative programs to advance key sectors and drive sustainable economic growth

Commenting on the signing, Eng. Adeeb Yousuf Al-Aama, CEO of ITFC, stated:

“This financing reflects ITFC’s continued commitment to supporting Djibouti’s strategic development priorities, particularly in strengthening energy security, port competitiveness, and trade facilitation. We are proud to deepen our partnership with the Republic of Djibouti and contribute to sustainable economic growth and regional integration.”

H.E. Ilyas Moussa Dawaleh, Minister of Economy and Finance in charge of Industry of the Republic of Djibouti, commented: “Today’s signing marks an important milestone in the development of Djibouti’s bunkering services and reflects our strong and valued partnership with ITFC, particularly in the oil and gas sector. This collaboration supports our ambition to position Djibouti as a regional hub for integrated maritime and logistics services. We look forward to deepening this partnership, creating new opportunities, and leveraging collaborative programs to advance key sectors and drive sustainable economic growth.”

This facility forms part of the US$600 million, three-year Framework Agreement signed in May 2023 between ITFC and the Republic of Djibouti, reflecting the strong and growing partnership between both parties.

Since its inception in 2008, ITFC and the Republic of Djibouti have maintained a strong partnership, with a total of US$1.8 billion approved primarily supporting the country’s energy sector and trade development objectives.

Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).

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