7 ways of preventing fraud: Your essential ‘Check’ List

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Did you know that organisations in today’s world face higher risk due to employee frauds than external fraud factors? According to the ACFE 2016 Report to the Nations, Typical Organisation Loses 5% of annual revenues to Fraud. While countries are making move to fight the black (money), you should ensure that you do not get TRUMPed by Fraudsters. As goes by the saying, Prevention is indeed better than cure.


So how do you prevent frauds?

The best way to prevent a fraudster from hitting you hard is to know that fraudster in the first place. Conducting an extensive Background screening exercise can unmask black and give you a detailed insight about the opposite party. Below is an exhaustive list of background checks which you should consider before entrusting anybody-be it an employee, partner or any organisation.


1. Identity Check

Identity theft impacts more than 17 million consumers every year, reports a Forbes survey. It is imperative for organisations to ensure that the person they are hiring/interacting with are who they actually claim to be. A national identity check verifies the identity of candidates for their genuineness. It raises a flag if any identity document is forged, stolen or doctored. Today, background screening providers offer instant national identity checks which deliver instant, accurate results.


2. Education Check

Incidents of fake diploma mills and forged educational qualifications have been reported in ample. Education verification helps identify false educational claims. As a part of this process, the institution or university issuing the certificate or degree is approached for verification of the subject’s key educational information like genuineness of the degree, name, year of passing, university and course name, and more


3. Employment Check

To secure jobs in this ever-competitive market, employment credentials are often manipulated.In an employment check, past employers are contacted for the candidate’s past employment details like name of the company, tenure, designation and more. Veracity of the employer is checked through research and verification is then conducted through their Human Resource Department or Reporting Manager(s.


4. Address Check

Employers need to know if their prospective candidate is reachable in case of an emergency. Address check is carried out to check the accessibility of the candidate. An address check includes verification of the permanent and correspondence address through direct physical site visits or through neighbourhood checks.


5. CV Validation

The first step to hiring an employee is evaluation of resume. This is the place where people manipulate their details the most. It is essential that the details in the candidate’s resume are validated against their actual qualifications and documents and these details are not lost during the evaluation process. Such gaps can be addressed using a quick CV Validation check.


6. Criminal Check

Organisations should ensure that they create a safe work environment where there is no fear and no pressure. As the first line of defence, businesses would want to ensure that the candidate they hire is clean and genuine. A detailed criminal check runs a comprehensive search on the candidate’s profile across all public criminal database to reveal the candidate’s past. This is an area which should never be overlooked and compromised.


7. Credit Check

Organisations need to carefully evaluate a candidate’s capability to handle roles of immense responsibility, especially where handling finance is in picture. Credit check helps organisations in evaluating a candidate’s intent and financial health to ensure that the person is worthy for the position/ loan. Remember, background check is about finding facts & authenticating claims to ensure quality hiring by organizations and fostering trust in individuals. Please note: A few background checks are job specific and not necessarily done on all. Of course, the choice of background check primarily depends on the criticality and risk attached to an offered position, industry type and country regulations. Having said that, a few background checks must be essentially considered while hiring to minimize hiring mistakes.

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