If a fraudster fails to remove a terminated employee from the payroll and collects the former employee's fraudulent paychecks, he or she is committing a:
A) Payroll larceny scheme
B) Falsified hours and salary scheme
C) Forged endorsement scheme
D) Ghost employee scheme

Question

Quizplus · Accepted Answer

A ghost employee scheme involves adding a fictitious employee to the payroll and collecting their paychecks. In this case, the fraudster has failed to remove a terminated employee from the payroll, essentially creating a ghost employee who they are collecting paychecks for.

If a Fraudster Fails to Remove a Terminated Employee from the Payroll