Payroll Fraud Prevention: Red Flags and Effective Controls (Video) (Course Id 2669)

• Who is this course for?
  This course is designed for payroll specialists, accounting managers, controllers, internal auditors, and other finance professionals seeking CPE credit and looking to strengthen their ability to detect and prevent payroll fraud.

• What is this course about or what problem does this course solve?
  The course addresses the widespread and costly issue of payroll fraud by providing practical skills and strategies to detect, prevent, and control fraudulent payroll activities.

• How can the knowledge from this course be used?
  Learners can apply the course knowledge to identify payroll fraud schemes, recognize red flags, implement effective internal controls, and use technology like RPA and AI to enhance fraud detection and prevention in their organizations.

• Why is this course important to a CPA, Accountant, or IRS Enrolled Agent?
  Payroll fraud represents a significant risk to financial integrity, and this course equips professionals with the tools to protect their organizations from financial losses and ensure compliance with ethical and regulatory standards.

• When is this course relevant or timely?
  With payroll fraud causing substantial annual losses and schemes often going undetected for extended periods, the course is especially relevant for professionals seeking up-to-date fraud prevention tactics, particularly in 2025.

• How is a course like this consumed or used?
  This self-study video course is delivered online through the NASBA QAS Registry format and includes downloadable resources, review questions, and a final exam that must be completed within one year to earn CPE credit.

Payroll fraud is among the most common and expensive types of occupational fraud worldwide. According to the Association of Certified Fraud Examiners (ACFE), organizations lose approximately 5% of their revenue to fraud annually, with payroll schemes accounting for roughly 10-15% of occupational fraud cases globally. These schemes typically last a long time, often 18 months before detection, and can cause significant losses (25% of payroll fraud cases cost over $250,000 each).

This comprehensive course equips finance professionals with essential skills to detect, prevent, and combat payroll fraud. You'll master the critical aspects of payroll fraud prevention through practical, real-world scenarios that blend theoretical knowledge with actionable strategies.

Through this focused training program, you'll learn to:

• Identify common payroll fraud schemes: Discover the various deceptive methods fraudsters use to exploit payroll systems
• Recognize red flags and warning signs: Learn to spot subtle indicators that may signal fraudulent payroll activity
• Implement effective preventive controls: Explore key strategies to establish robust safeguards that prevent payroll fraud before it occurs
• Deploy detective controls: Gain insights into monitoring techniques that help identify suspicious activities early
• Leverage technology solutions: Understand how to use RPA (Robotic Process Automation) and AI (Artificial Intelligence) to enhance your fraud prevention capabilities

The course provides downloadable Payroll Red-Flag Cards that serve as quick reference guides for identifying the eight most common fraud indicators in payroll processing.

Whether you are a payroll specialist, accounting manager, controller, internal auditor, or finance professional, this course will sharpen your fraud lens and equip you with practical tools to protect your organization from costly payroll fraud schemes.

Video - NASBA QAS - NASBA Registry - 2669

Course Learning Objectives

1. Identify common payroll fraud schemes: Recognize various deceptive methods fraudsters use to manipulate payroll systems for personal gain.
2. Detect red flags: Spot warning signs and indicators that may signal fraudulent payroll activity is occurring.
3. Analyze fraud scenarios: Apply knowledge to evaluate situations where multiple risk factors suggest potential fraud.
4. Implement preventive controls: Establish proactive measures designed to stop fraud before it occurs.
5. Deploy detective controls: Utilize monitoring techniques that help identify suspicious activities after they've occurred.
6. Leverage technology: Integrate manual controls with RPA and AI to enhance fraud prevention.

Section 1 - Payroll Fraud  Schemes & Red Flags

Section 1 Review Questions

Section 2 - Preventive, Detective, Automated & AI Controls

Section 2 Review Questions

Glossary