Time Card Fraud: Yes, It’s a Thing (and It Happens More Than You Think)
Time card fraud happens when an employee intentionally records time they didn’t actually work, and to many leaders' surprise, this may be happening more than you think. This can include buddy punching (clocking in and out for a teammate), editing time entries after the fact, staying clocked in while running errands, logging unapproved drive time to and from a work location, logging full days that weren’t fully worked, etc.
It doesn’t usually start with evil intentions or dramatic schemes. It starts with things like:
“I’ll just round up.”
“I was basically working.”
“No one will notice.”
“I don’t want to get in trouble for being late”
“Shoot, I took too long of a lunch break”
Spoiler alert: someone eventually notices!
Imagine a remote hourly employee working from home who clocks in promptly at 8:00 AM each day, but then spends the first 20 minutes making coffee and breakfast, moving laundry, and settling in before actually starting work. At $30 per hour, that equates to about $10 per day of paid non-work time. In this example, assuming the employee takes appropriate breaks and lunch periods, over a standard 260-day work year this small habit can quietly accumulate to approximately $2,600 in lost productivity for a single employee. Multiply that across several team members, and the financial and fairness impact grows quickly. This is exactly why time accuracy matters, not as a form of micromanagement, but as a foundation for trust, consistency, and accountability.
This isn’t just about payroll dollars, but it can add up over time to hundreds even hundreds of thousands of dollars. It impacts trust, fairness, compliance, and company culture. Honest employees notice when others get paid for time they didn’t earn, and it creates quiet resentment.
So how does time card fraud happen? It often begins with “just this once,” rounding up, or assuming no one will notice. Over time, those small choices become habits, and habits become risk, and significant performance and ethical concerns.
Recently working with a client, a manager came to us with a familiar concern: an employee was clocking full eight-hour days, but the work output simply wasn’t matching the time being reported. The Rising Tide HR team compared timecards with system logins, meeting records, and access data. Full workdays were being recorded despite clear and significant gaps in activity. Once reviewed over multiple weeks, a consistent pattern emerged. Because the company had strong documentation and policies, they were able to address the issue calmly, fairly, and compliantly. Due to the severity of this particular situation, the employee’s employment was terminated.
When employment or performance matters arise, and you are considering this to be your issue it is important to gather objective data, review for patterns, confirm policy alignment, document findings, and address concerns promptly. Consistency also matters, even when the employee is well liked or high performing. You want to ensure you do not ignore the issue, delay action, or handle it emotionally.
Clear timekeeping policies, regular audits, manager training, limited editing access, and leadership follow-through dramatically reduce the risk of time card fraud . If you’re unsure whether your timekeeping practices are up to par, Rising Tide HR is always happy to help you review, strengthen, and protect your processes — without judgment and with a whole lot of experience.
