Timesheet Fraud – Is your business protected?

As many as 75% of companies have time “cheated” from under their noses. This often results in a 5% loss of its revenue to timesheet and attendance fraud each year.

Whether employees commit such fraud inadvertently or intentionally, it’s the employers who are left paying them for unworked hours.

Here are some of the Common Timesheet and Attendance Fraud Committed in the Workplace:

  • Time Theft – Employees or contractors clock in without doing any work, or even being present at the office or job site.
  • Buddy punching – Employees punch in on another’s behalf
  • Inflating work hours – With paper-based timesheets, it’s very easy for employees to enter incorrect times of arriving and leaving work and overstate or round their hours up to the nearest hour. Overpayment then occurs as the employee is paid based on falsified hours or rates.
  • False data entry – If employee attendance data has to be retyped from timesheets or time cards into a payroll system, it is very easy for a dishonest employee to change the numbers. As well as being open to fraud, this type of process is susceptible to typos and mistakes.

Best Defense Against Timesheet Fraud

There are many ways to detect and prevent Timesheet and Attendance Fraud, but one of the easiest and most unobtrusive ways to defend your business from such fraud is via Electronic timesheets. Presently, the most famous among electronic timesheets is the BIOMETRICS ATTENDANCE SYSTEM.

Biometrics Attendance System terminals

Biometrics Systems makes use of someone’s unique biological feature to verify someone’s identity. Biometrics modalities are programmed to be difficult to spoof as they can provide both real-time and recorded data. This way, someone’s fingerprint, face image, voice or iris can be used to determine with better accuracy that a person is who they claim to be at a particular time, thus eliminating the possibility of fraud.

Benefits of Biometrics System

Human-errors associated with timekeeping can also be addressed by Biometrics Systems. Typos, false data entries can now also be prevented. Employers can now trust that the information recorded about his staff’s attendance is neither easily tampered with nor incorrect.

Biometrics systems also offer a better and more secure way of storing your data. Information gathered by terminals is kept on a secure server rather than on local devices. No trace of data is left behind on personal or corporate endpoints, thus ensuring biometric templates are kept remotely and securely.

Intuition and convenience are also two of the best benefits a Biometrics system can provide to a workplace. The HR and the Management can spend less time manually organizing data for payroll purposes. Employees will also have an easier and faster way to time their work hours accurately.

Biometric Attendance System is a growing trend in the business world, and with the Internet of Things, it’s growth potential is headed towards many possibilities.

Need help in deploying Biometrics Attendance System in your business? We can help! Learn more about HBSS today.

Melissa Molejon

Social Media and Marketing Coordinator

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