Which of the following is a typical behavior associated with ghost-employees in payroll fraud?

Creating fictitious workers on the payroll is a hallmark of ghost-employee schemes in payroll fraud. This fraudulent activity involves adding names of employees who do not actually exist or who have left the organization to the payroll system. The actual intention behind this practice is to divert funds intended for legitimate employees into the pockets of the perpetrator, often through checks or direct deposits that can be cashed or withdrawn.

This tactic is particularly insidious because it can go unnoticed for long periods, especially in larger organizations where human resources may not closely monitor payroll details. The fraudulent nature of this activity is highlighted by the fact that these ghost employees do not perform any work and thus produce no legitimate pay for the company, yet they generate illegitimate income for the fraudster.

In contrast, regularly updating employee records, conducting thorough vetting of job candidates, and filing accurate tax documentation represent best practices that organizations implement to maintain compliance and mitigate fraud risk. These actions would typically serve to enhance payroll integrity rather than contribute to fraudulent behavior. Therefore, the creation of fictitious employees stands out as the definitive action associated with ghost-employee fraud.