HR Fraud Exposed: 22 Fake Employees Drew Salaries for 8 Years!

HR Fraud Exposed: 22 Fake Employees Drew Salaries for 8 Years!

Beijing: Imagine receiving a salary every month for eight years without ever stepping into the office. Sounds impossible? Not for 22 “employees” at a Shanghai labor service company, who were getting paid regularly—except they didn’t exist. The shocking scam was uncovered when a routine audit revealed that one employee had a perfect attendance record but had never been seen at work.

The mastermind behind this elaborate fraud was Yang, the company’s Human Resources (HR) manager. He exploited his position to create fake employee profiles, ensuring salaries were deposited into accounts he controlled. Over eight years, he funneled 16 million yuan (₹18 crore) into his own pockets. To avoid detection, these ghost employees were made to “resign” periodically, even receiving severance pay—also transferred to Yang’s accounts.

The fraud finally came to light in 2022, leading to Yang’s arrest. He has been sentenced to 10 years and 2 months in prison and ordered to repay ₹1.2 crore.

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