Stop Employee Time Theft And Embezzlement With Automated Time And Attendance

Stop employee time theft

Antiquated paper time sheet

We caught wind of a news story today about a Stamford, CT woman who embezzled over $150,000 from her employer by falsifying payroll spreadsheets over the course of a four year period.  Apparently the woman was manually increasing the number of hours that she worked each week then manipulated composite reports so they would not show any increase in pay.  All told over the course of nearly four years, she overpaid herself $150,689 in salary and $11,528 in Social Security and Medicare benefits.

After reading this article, we wondered if the employer might have been able to avoid this employee time theft if they would have discontinued using paper time sheets and instead switched to an automated labor tracking system that included a biometric time clock component.  We have written previously about 5 reasons paper time sheets suck and why you should stop using them, clearly this story is a an example on how employers can mitigate risk by switching to automated payroll systems that eliminate data manipulation leading to exorbitant payroll losses.

Investing in an automated payroll system that includes a “soft” clock application that can be used with or without biometrics and acts as a custom employee time data collection interface is becoming a more attractive option for employers.  Our RightPunch™ soft clock application works seamlessly with many leading Workforce Management platforms, such as Kronos, ADP, Empower, Qqest, Insperity, and others, to collect offline time stamps, locally enforce schedule restrictions, and facilitate employee self-service (ESS) functions. It is a more affordable alternative to the traditional time clock and more sensible option to the antiquated paper time sheet system which can easily be exploited.  It is designed to eliminate employee time theft, increase productivity, reduce payroll error rates, and ensure compliance with labor tracking laws.  It also creates payroll efficiencies through automated data collection and submission, to prevent employees from falsifying data and cheating the system.

Could this be the right time for you to invest in an automated payroll system?  Have you ever suspected employees were cheating you by falsifying their time sheets?  What questions or comments can you share about your experiences?

John Trader (359 Posts)

John Trader is the Public Relations and Marketing Manager with M2SYS Technology, a recognized industry leader in biometric identity management technology. Headquartered in Atlanta, GA M2SYS Technology's mission is to pioneer the high-tech industry by delivering long-term value to customers, employees and partners through continued innovation and excellence in all aspects of our business. M2SYS continues to innovate, build and bring to market leading-edge biometrics solutions that revolutionize the industry and expand the applicability of biometrics technology in our marketplace. You can view their Web site at www.m2sys.com or contact them via e-mail at info@m2sys.com


  • Nice post!  While many think that a paper timesheet system is more affordable or even “free.” the article referenced clearly is an argument against that idea.  In the referenced article the embezzled amount was over $150K, the cost of an automated time and attendance system, including biometric time clocks, would have likely paid for itself by simply catching this kind of abuse…not to mention the time-saving efficiency gained and cost savings of a paperless process.

    • Good points Nick.  As I am sure you have seen, the return on investment for automated time and attendance systems often pays for itself in a matter of months and in the long run could prevent massive fraud and abuse.  Often, it’s so hard to relate this fact to companies who may have short term budgetary constraints on their mind.

  • A major payroll time challenge that continues to haunt small businesses
    alike is time theft – ADI Time helps you time theft by consistently and automatically applying
    rounding rules and restriction capabilities, as well as eliminating “buddy
    punching” is used in conjunction with our biometric time clocks.

  • Astrowsuite

    Hi there! This post
    couldn’t be written any better! Reading
    through this post reminds me of my previous room mate! He always kept talking
    about this. I will forward this article to him. Pretty sure he will have a good
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  • We counter time theft with a biometric time clock. They are easy to use and very hard to fake out. Plus, we can export hour data directly to payroll software, without having to mess with time cards!