What Exactly is Timesheet Fraud?



Is your company still depending on spreadsheets or paper timesheets to manage workers’ time and attendance? You’re opening doors to timesheet fraud. When your business manages workers’ time manually, it’s prone to:

  • Inaccuracies
  • Inefficiencies
  • Non-compliance with working time requirements

It isn’t uncommon for such organisations to have timesheet fraud and employee relations issues. Businesses lose productivity and huge sums as a result of these activities. This article explores timesheet fraud in detail, including:

  • What it is
  • The common types and how you can prevent them.

Let’s discover more.

Timesheet Fraud in Details

Timesheet fraud is also known as time theft. This kind of theft occurs when a worker provides false information or exaggerates hours worked in timesheets and receives full amounts when it comes to payment. Time theft is a common issue in many companies.

In most cases, workers commit timesheet fraud by adding a few minutes to their timesheets each day. These minutes grow into multiple hours and even days per month, which your organisation ends up paying heavily for.

Are you entirely not sure that your business has no time fraud cases? Chances are higher that it’s happening, especially when you don’t have a high-end system to manage the time and attendance of your workers.

Common Types of Timesheet Fraud

For Human Resources managers and business owners, it’s vital to know what constitutes a time theft or timesheet fraud. Sometimes, your workers can commit these frauds out of inattentiveness accidentally. You can take the required action when you understand the different timesheet fraud types that most companies encounter. The most common ones include:

  • Exaggerating work hours: This is the most common type, especially in companies that use hard copy timesheets. Workers intentionally record incorrect arrival and exit times.
  • Buddy punching: This fraud occurs in companies that depend on outdated card punching attendance solutions. Here, employees put in false arrival and departure times on behalf of a co-worker.
  • Human error causing inaccuracies: Human resources administrators can commit errors when information from timesheets is transferred to the payroll software. The intention isn’t to save timesheet fraud. But due to inaccurate attendance records, issues arise. These inaccuracies can increase the number of times information has to be added manually or copied.
  • Favouritism: This type is usually committed by administrators and superintendents who tend to favour certain workers over others. Favouritism occurs when supervisors and managers overlook lateness, long breaks off, and absenteeism. They overlook these things for workers they like or share personal interests with.
  • Long breaks: Some workers exploit lunch breaks by taking longer hours than those allotted. This practice affects productivity within a team as well as the work culture of other workers who might be negatively affected by such behaviour.

An easy solution to all these timesheet fraud types is an automatic attendance system that seamlessly integrates with the payroll software. If left unchecked, timesheet fraud can be a massive productivity problem. Find a top-rated time and attendance system to prevent time theft.

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