HR manager creates 22 fake employees, steals ₹18 crore over 8 years

An HR manager in China pulled off a shocking payroll scam, creating 22 fake employees and pocketing ₹18 crore in salaries and severance payments before finally getting caught.

The accused, identified as Yang, worked for a labor services company in Shanghai, where he managed payroll for workers assigned to a tech firm. Realizing there were no strict salary reviews, he saw an opportunity to commit fraud.

How He Pulled It Off

Yang first created a fake employee named "Sun" in 2014 and ensured he received regular salary payments. But instead of sending the money to Sun, he funneled it into a bank account under his control. When questioned about missing salary payments, he blamed delays at the tech firm, avoiding suspicion.

Encouraged by his success, Yang expanded his scheme over eight years, adding 21 more non-existent employees. Each ghost worker had flawless attendance and received regular payments, which Yang redirected to himself.

How He Got Caught

The scam unraveled in 2022 when the tech firm’s finance team noticed that Sun had a perfect attendance record but had never actually been seen at work. An internal probe exposed Yang’s fraudulent payroll manipulation, leading to a full-scale investigation.

Authorities discovered that Yang had stolen millions through his scheme. Following his arrest, he was sentenced to 10 years and two months in prison. Additionally, he was stripped of political rights for a year and fined. While he was ordered to return ₹1.2 crore, his family also contributed ₹1.3 crore in repayments.

Public Outrage

The case went viral on social media, with many criticizing the labor service company’s weak payroll system. “He stole millions while real employees struggled with unpaid wages. He should be ashamed,” one user commented. Another added, “The company had serious loopholes. This could have been avoided.”

This incident highlights the importance of strong financial oversight to prevent fraud on such a massive scale.