Utilising background checks to avoid employee fraud

Employee fraud can have devastating consequences for a business and as concern over disgruntled employees committing fraud rises in 2011, employers are looking for different ways in which to combat internal fraud. Current economic conditions prevailing in 2011 could have a severe and negative impact on employee morale – which is one of the main contributors to increasing incidences of employee fraud. Corporate SA is losing an estimated R150 billion annually to insider fraud, according to Steven Powell head of forensics at law firm Edward Nathan Sonnenbergs.

The volume of background checks carried out by EMPS increased by 18 per cent in 2010, despite an obvious slowdown in recruitment, demonstrating a tightening-up in employee screening. While it is crucial to deal with this issue in the recruitment process, to truly safeguard against insider fraud HR needs to maintain an element of screening throughout the employment contract.

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Social Media Background Checks Here to Stay

Social Media background checks are here to stay, approved by the FTC and increasingly adopted by corporations as a way to screen applicants. The good news is that you need to be a pretty big jerk to flunk one.

A social media background check is a little more sophisticated that checking your Facebook account, but not much. Basically, after you apply for a job at a company, the company–with your permission–hires another company to check you out on the web.

Having the third company check you out on the web is an important part of the process. Employers can’t discriminate on the basis of race, religion, age, sexual orientation and so forth. But if the company does the background check on the web itself, that photo of you with your church group marching in the Gay Pride parade is going to put them in a seriously bad position. If they don’t hire you, you can claim it’s because of that picture.

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Fraudulent Education and Employment Claims Increase Background Background Checks

By Gordon Basichis

Fraudulent claims from international employment candidates, especially from China, have necessitated an increased in employment and education verification background checks for employers looking to recruit applicants from these regions.   Many employment screening services have reported that the growing problem of academic and work qualification fraud in China has lead to increased business from background checking agencies.

For a long time international candidates made fraudulent claims and for the most part they went uncontested. Staffing agencies and employers for a long time accepted the information on CV’s and resumes pretty much at face value.  But no longer.

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i found you!

by Blake Forrester

Most employers can easily grasp why running a quality background check is important, but unfortunately there are many myths floating around about background checks that could get even a well-meaning employer in trouble.

One myth is that there is some kind of national database to which private employers have access which contains all the information an employer could ever need to ascertain a potential employee’s criminal history and to confirm the education and employment information they have claimed. If only it were that easy.

Doing a thorough background check necessitates a lot of legwork and attention to detail. You have to know where to look, and you have to look in a lot of places. For a criminal background check, for instance, there are over 10,000 courthouses in the United States that have relevant records. These courthouses must be visited in person; they do not combine all their records somewhere for the convenience of employers.

A related myth is that to do a proper background check you need only consult commercially available databases.

Unfortunately while such commercial database services might seem attractively inexpensive, you get what you pay for. How likely do you think it is that the folks who compiled these databases went to all 10,000 courthouses and checked and double checked everything to minimize false positives and false negatives? Not very.

A third myth is that as an employer it’s really not too hard to do a background check that’s “good enough” so that if anything does go wrong you can’t be blamed.

In fact, the due diligence that is required of you can be quite stringent, not to mention unpredictable since it may boil down to what a given jury decides on a given day would have been a reasonable effort on your part to investigate a potential employee.

A fourth myth is the common belief that employers can disqualify an applicant based on a criminal conviction without a business justification.

Once a person has “done his time” the law does not allow him to be indiscriminately penalized the rest of his life by being rendered unemployable. If the nature of the job, the specific offense he committed, the amount of time that has elapsed since the crime, etc. indicate that he would be a substantial risk, then yes, you are within your rights as an employer to deny him a job. You are not required to hire a convicted sex offender to work at your day care, for instance. But if he smoked marijuana 25 years ago, that’s not sufficient grounds to rule him out for employment repairing clocks in your shop.

Source: pre-employ
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fake-degree-2-300x180

Education verification is an important part of your general employee background check. If you believe that this has lesser importance than a criminal background check, consider the case of Laura Callahan who resigned as Director of the Department of Homeland Security in 2004.

It was established that Laura Callahan’s doctorate was obtained from Hamilton University, a known ‘diploma mill’. That is a so-called educational establishment that offers diplomas and doctorates to students after little or no study. Subsequent investigation discovered that a minimum of 28 other senior employees had obtained their qualifications from diploma mills. In other words, they were not suitably qualified for the jobs they were holding.

 

Diploma mills are commonplace, and Columbia State University, for example was shut down in 1998 after an advertising campaign offering degrees within 27 days! That was another diploma mill, and that is one of the reasons for education verification being so important.

The requirement for qualification has become very widespread, and it is little wonder that so many job applicants are tempted to at least overstate their qualifications if not downright lie. Most company positions now require an education qualification of some form or another, and if you search for ‘fake degrees’ on Google you will find several pages offering them. It’s a problem.

The temptation to provide false educational credentials is overwhelming since the rewards for success in fooling your potential employer can be high. The General Accounting Office reported in 2004 that up to 200,000 federal employees had falsified their resumes. These are the ones that were detected. How many more are there that were not detected, and how many in all occupations are involved, not just federal employees? So do not think that you are immune to this; you probably already have employees on your payroll that have falsified their resumes.

This is a serious problem, and a breach of faith on the part of the employees who do this, especially where the knowledge provided in studying for a degree is necessary in the job, and its absence could affect all of the other employees in the company. It is also a serious error on the part of the employers who offer them employment without carrying out suitable education verification.

As more and more qualifications, diplomas and degrees are requested for more and more jobs where previously they were not required, education verification becomes increasingly important. Candidates are highly motivated to provide degrees, obtained by whatever means they can, and up to 20% of employers in the USA now require verification of diplomas and degrees from the college or university that awarded them.

Some universities offer an online verification service that involves providing the student with a password that they can pass on to a prospective employer. This provides the employer with a portal into the student’s records that confirm the qualification awarded. Although this does not address the problem of diploma mills, it at least provides some security. A list of accredited educational facilities would help reduce the need for full education verification and the issue of not knowing what is and is not a diploma mill.

Diploma mills may be breaking the law if they offer these diplomas to students in the knowledge that are being used for job applications, and the applicant is committing a criminal offense in many jurisdictions by presenting them. A federal law is required on this issue, and that would possibly help employers with this problem.

In the meantime, employers must not overlook education verification when carrying out employment background checks. It is easy to omit this essential factor of employee screening, but the employment of an unqualified nurse or doctor can be just as damaging as that of a shop floor employee with a record of violence. The cost to the employer could ultimately be considerably higher.

It should not be assumed that any qualification is genuine, and if a specific diploma or degree is required for a job, it should be verified that the candidate does indeed possess that, and that it has been awarded from a recognized educational or training establishment.

Education verification should be included in the employee screening that all companies should carry out, preferably by hiring a professional investigator to carry it out. It is too important and skilled a job to try yourself unless you have employees trained in how to carry out background checks, and the penalties for failure can be very high.

Source: andreaweckerlecopywriting
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