SOFA-CFE · Question #380
In order for a ghost employee scheme to work, which thing must NOT happen?
The correct answer is D. check must be delivered to the payroll company. Why D is correct: In a ghost employee scheme, the fraudster must intercept and pocket the paycheck themselves - so the check must never reach a payroll company or legitimate third party outside the fraudster's control. Delivering it to a payroll company would expose the scheme…
Question
In order for a ghost employee scheme to work, which thing must NOT happen?
Options
- Aghost must be added to the payroll
- Btimekeeping and wage rate information must be collected
- Cpaycheck must be issued to the ghost
- Dcheck must be delivered to the payroll company
How the community answered
(14 responses)- A14% (2)
- C7% (1)
- D79% (11)
Explanation
Why D is correct: In a ghost employee scheme, the fraudster must intercept and pocket the paycheck themselves - so the check must never reach a payroll company or legitimate third party outside the fraudster's control. Delivering it to a payroll company would expose the scheme or result in funds going somewhere the perpetrator can't access.
Why the distractors are wrong:
- A - Adding the ghost to payroll is required; it's the mechanism that generates a paycheck in the first place.
- B - Timekeeping and wage rate data must be fabricated and submitted so the system processes a legitimate-looking payment.
- C - Issuing the paycheck is the whole point - without it, no money moves.
Memory tip: Think of the scheme as a pipeline: Add ghost → Submit fake time/rate → Issue check → Fraudster collects it. The scheme breaks at any step where someone outside the fraud touches the money - so the check must never reach a legitimate company or person.
Community Discussion
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