The easy hiring of blue-collar in the sharing economy poses safety threats.
Whether it is sexual harassment, data theft or violence, workplace crimes pose a serious threat to the company's reputation. Data breaches were experienced by one out of four companies in 2017 with a 350 percent rise in ransomware attacks in the U.S. At least 55 percent of these attacks were carried out by insiders or employees. Other data shows that insiders are responsible for major crimes in financial and healthcare sectors as well.
In India, there were recent reports of how some business process outsourcing employees indulged in tech support frauds by stealing confidential data of clients. Shared economy companies have also come under the scanner with regards to safety. With the rise in crime incidents, it is becoming increasingly difficult to trust an employee instantly.
A PricewaterhouseCoopers report shows that the growth in Internet banking or NEFT transactions have resulted in a major spike in cyber frauds amounting to more than 700,00 billion rupees. A majority of phishing attacks, debit or credit card frauds, tech support frauds, malware and ransomware are perpetrated by insiders or ex-employees.
As per RBI data, there has been a significant jump in the amounts lost in financial frauds in the last three years. While Rs. 2037.81 crore was lost in 2011, the more recent figures indicate Rs. 8646.00 crores were lost in financial scams, indicating a 324% increase.
Risks of “on demand” economy
The emerging “on-demand” economy in India is said to add 22 million new users every year while $57 billion is spent on these services. This business model makes it easy and convenient to hire anyone from a plumber to a hairdresser and get instant home delivery services with a click of the mouse. While increasing convenience, this model also adds a significant element of risk as employees are often contracted or not on the employer’s rolls. With no comprehensive system of criminal record check or criminal record verification, there is a very high risk of frauds or crimes.
When employers do not invest in criminal records check, such incidents can wreak havoc on the company’s growth and reputation. As per data from SHRM (Society for Human Resource Management), 69 percent of organisations carry out criminal records check of potential employees and at least 52 percent say they do so to avoid negligent hiring.
A 75% failure rate was uncovered in criminal checks in certain regions of India.
The importance of partnering with a professional criminal record check provider cannot be overstated. The emergence of national identity verification has made it possible to verify a host of information on the identity, address and other details instantly which help consolidate criminal records check.
Public database maintained by various courts across the country as well as some international database can be effectively leveraged to conduct criminal records check.
Types of criminal databases available
- District Civil Courts & Tribunals
- High Courts
- Supreme Court
- Magistrate Court
- District Court
- State Courts
- Criminal Suit – Magistrate Court
- Criminal Suit District Court
- Criminal Suit State Court
Apart from these courts, defaulters’ lists are also obtained from the lists provided by SEBI, RBI, CBI’s most wanted lists, Registrar of Companies and Central Vigilance Committee’s list of corrupt officials.
With the emerging emphasis on digitization and connectivity, verifying the antecedents of every employee with a criminal check is the need of the hour.
Learn how to go beyond criminal checks to prevent financial frauds and reputational risks.