Definition
Ghost Employee refers to fictitious or terminated employees who remain on payroll and continue to receive salary payments.
Context
Ghost Employee is a common fraud scheme in payroll and HR administration. It is closely linked to weak internal controls, lack of segregation of duties, and insufficient reconciliation between HR and finance systems.
Meaning
Ghost Employee schemes result in direct financial losses and indicate weaknesses in joiner, mover, and leaver processes as well as system integration and controls.
Example
Salary payments continue to be made to an employee who has already left the organization.
Sources
Suggested citation
wirtschaftsforensik.ch Editorial Team: "Ghost Employee", in: Glossary, wirtschaftsforensik.ch, https://wirtschaftsforensik.ch/glossar/ghost-employee/, accessed April 18, 2026.