Payroll fraud comes in many forms, and is well documented in the Construction industry. In a business where labor is often the largest cost on a project, this problem can really handicap a company's ability to be competitive and profitable. According to the Association of Certified Fraud Examiners, the average payroll scheme goes undetected for over two years. Even once detected, cases are less likely to be reported and prosecuted in the construction industry, often due to a lack of evidence. 

The two most common types of payroll fraud that occur on the job site are falsified time and phantom employees, both part of the construction time and attendance process.  Over the last decade, more technologies are now available in the field to combat payroll fraud.  While it's possible to prevent certain kinds of fraud altogether, it is often even easier and more cost effective to deter the majority of cases.