Systems and methods are disclosed for detecting a faulty ground strap connection for a machine hosting a high voltage system. In one embodiment, a fault detection and compensation system includes a ground strap, a DC power supply electrically referenced to a machine frame, a leakage detection switch connected to the machine frame, a current source controlled by the leakage detection switch, and a voltage measuring device that measures an offset voltage. The fault detection and compensation system further includes a leakage detection and compensation controller that compensates for the unbalanced fault condition by controlling the leakage detection switch and the current source, and determines whether the ground strap is properly connected to the machine frame.