November 2019

Background Checks

KYC – How does KYC Complement Identity Verification?

While it is important for businesses to know their employees, it is equally important that they know their customers and/or clients. That is why KYC, which stands for Know Your Customer is a critical component for any organisation. It is a process that helps to identify and verify that customers are exactly who they claim to be.

Especially in a country like India where a huge population translates to an ever-increasing number of consumers, Know Your Customer (KYC) becomes an important parameter. Did you know that in India, identity theft is the largest and most common form of fraud? It’s true. According to the Fraud Report 2016 launched by Experian India, identity theft accounts for a staggering 77 percent of all reported fraud cases, particularly in the banking and finance sector.

This number may come as a surprise for many, but it is a testimony that we need more stringent and robust KYC solutions in India. With the rapid growth of the sharing economy we live in today, trust becomes more important than ever, and for businesses, effective KYC solutions help to build that trust between them and their customers.

KYC solutions in the modern economy

Today, for any company, regardless of which industry you belong to, it is essential that you know your customer. As mentioned before, effective KYC solutions verify that claims made by customers and/or clients are legitimate and that there are no discrepancies. In doing so, it helps to build trust, which is the cornerstone of all positive and successful business relations.

Moreover, KYC checks against customer risk, thereby saving your company from many potential frauds that could cost you lakhs, and even crores of rupees. It also helps to ensure compliance with anti-money laundering policies. Maintaining brand image has become a key factor in ensuring success in capturing the customer base. Having fraudulent customers, bad debt and money laundering practices can be extremely detrimental to the brand’s reputation.

KYC solutions are essential for financial institutions. Before any kind of lending or transaction, the organisation must assess the various risks involved with the client. For example, in lending services, KYC solutions give information about the customer’s job and his/her ability to pay-off the loan. Similarly, engaging with politically volatile or exposed clients may turn the favour of the people and government against your company.

Partnering with professionals for KYC solutions in India

It is wise for companies to tie up with third-party KYC solution providers to ensure that they do not compromise on the safety and security of their business. Professionals, after all, have the tools and skills required to validate data of individuals and entities accurately and instantaneously.

KYC solutions in India with the use of national IDs, utilise advanced technologies and solutions to scan through and analyse large chunks of data and metadata regarding clients, customers, employees and businesses. Also, in the case of B2B services, companies must ensure that the businesses they are dealing with do not have any history of criminal backgrounds or malpractices.

KYC solutions in India are primarily achieved through national identity verification. By mapping the details provided by the customer/employee with that in the database, the correct identity of the customer/employee can be easily and accurately identified instantaneously. In simpler words, KYC helps companies to make sure that their customers and/or clients are not faking the details that they provide through a thorough and reliable cross-checking of data. This is the KYC guarantee. To know more about KYC solutions in India, get in touch with our experts today.

Write to us at:-sales@authbridge.com

By Shivangi, 5 yearsNovember 28, 2019 ago

Background Checks

Challenges of C-suite Hiring and measures involving Leadership Due Diligence

Leadership in the recent times has become more complex than ever. The role of senior management is increasingly becoming more critical. Hence, it is vital for board members and CEOs to hire the right candidates for the upper management. The image and progress of the brand or company is directly dependent on the working practices of C-suite executives. The recent times have shown multiple frauds and scandals involving upper management and board members, which have made headlines in newspapers. A recent survey conducted in India shows that 37% of middle and senior level management to be involved in unethical practices.

This is a clear indication of the gaps in the leadership due diligence methods used in this country. The survey took into account various factors like cyber security, physical theft, bribery and corruption. C-level executives of leading PSUs in India are now under constant surveillance after a financial scam worth 11,300 crores was unearthed recently. This is where leadership due diligence comes into the picture. C suite executive screening ensures eligible candidates for upper management. Senior executives of any organization are responsible for setting the work culture of the company.

They not only act as role models for the rest of the team, but also responsible for setting goals and motivating their employees. Hence hiring the right team of leaders is critical for any business. This calls for Leadership due diligence, which ensures proper hiring of the correct upper management. Even though most businesses today realize the gravity of leadership due diligence, HR teams and CEOs still face hurdles in hiring the right candidates of the C-suite positions.

Challenges faced in C-suite hiring

1) Misalignment of objective and candidate- McKinsey studies have indicated that over one-third of top level executives were not able to properly align candidates with their objectives. Without leadership due diligence, a company can end up hiring senior management who do not understand the culture and processes of the company. This would primarily happen because of mismatches in the candidate profile and job goals. Inaccuracies in the hiring processes are one of the major challenges faced by HR teams and CEOs.

The HR must successfully implement latest technologies, innovative marketing and customized messages and mails to hire the right candidate. The recruitment process needs to gather the attention of the top talent, through leveraging modern technologies and innovative hiring practices.

2) Lack of interview structure- Many companies conduct interviews for top level management without a proper format or structure. Such interviews are not only ineffective at gauging the candidate correctly, but also have the possibility of biased results. In order to preserve the efficacy and objectivity of the hiring process, a proper format must be implemented that takes into account preset parameters like skills, relevant work experience and education among others. It is vital to check the parameters that were identified during leadership due diligence endeavors.

3) Delay in On-Boarding- Hiring processes can sometimes be lengthy and labor-intensive. This often causes delays in confirming a candidate either due to delay in approvals or indecisiveness. A highly talented candidate in the market often has multiple job offers and are aggressively sought after by companies.

Moreover, verifying the c-level management takes a lot of effort than usual background verification process. Hiring a 3rd party professional agency that conducts leadership due diligence can be a blessing in speeding up the hiring process.

Also Read: Leadership Due Diligence is a Long-Term Investment

Lack of proper policies and job descriptions

A thorough leadership due diligence is not possible without proper guidelines and policies. Lack of appropriate recruitment guidelines, screening processes and policies can lead to hiring of employees that are either not qualified for the job or are not culturally fit for the company. Also, an ineffective leadership due diligence practice can lead to hiring of C-level management with a criminal record or history of drug abuse.

This will not only tarnish the image of the company but also will have serious consequences on business operations. HR must properly define job roles and have proper hiring policies to pair the right candidate with the right job. Candidate analysis and leadership due diligence should be carried out using the latest technologies on an integrated platform that has all the necessary requisites couple with HR policies and hiring guidelines.

By admin, 5 yearsNovember 28, 2019 ago

Background Checks

Questions about Employment Criminal Records Check

The current marketplace is harsh when it comes to scrutiny of brand image. Any unethical or criminal activity associated with companies is not at all tolerated by the customers. The industrial landscape has seen the death of many companies because of such scandals. In order to avoid such blows to the image, a thorough criminal records check is mandatory during the candidate screening process.

An employee criminal record check is one of the most important parts of the overall background verification process. Negligence in the hiring process might cause companies to hire employees with criminal backgrounds and proclivities. This can cause theft of property, malpractices, loss of reputation, loss of clients and capital. The Society of Human Resource Management estimates that a total of 69% of the organisations conduct criminal records check on their job applicants.

More than 50% of the organisations have confirmed that their criminal records checks are for ensuring high standards of hiring practices.

In India, criminal records check practices have revealed a total of 75% of the failure rates of applicants in certain locations. Criminal record verification process is usually conducted by accessing records on all levels of judicial authorities. Right from local to national. Mentioned below are some of the key questions that one might have about criminal records check, and their responses:

Employees at which designation must go through criminal records check?

Every new employee irrespective of the division or grade must go through a rigorous criminal record check process. While employees on smaller levels can cause loss of resources and reputation, having top executives with criminal records can kill the enterprise.

Are there regulations regarding criminal verification?

In India, as of now, there are no thorough laws governing the extent of criminal verification. However, there are strict punitive policies in place for companies if they fail to keep their employee information confidential or if they use personal information in disruptive ways. The Indian Contract Act and the Indian Penal Code and Information Technology Acts are usually considered as the standards in such cases.

How long does it usually take to conduct a Criminal Verification?

It typically takes 14 working days to conduct a criminal check from a Police Station through a law firm. This process can be made more efficient and verification can be conducted within 7 days with the use of automated database management capabilities.

What are some of the common records available?

Today, we have access to the district magistrate, state and the Supreme Court’s public records, data related to litigations and other sources. AuthBridge also has the access to database of National Crime Research Bureau and most wanted lists posted by CBI. There are other databases that show details about disruptive behaviours such as history of drug abuse. Financial defaulters’ list is also accessible from SEBI, RBI and lists of corrupt officials published by Central Vigilance Committee.

How to conduct a criminal record Verification?

The first thing to keep in mind here is communication. You need to inform the candidate before-hand that you will be conducting such a check. Only after consent from the candidate should anyone proceed. Secondly, the candidate must be given complete assurance of privacy and confidentiality. All of this must be established in the form of written consents. After securing the above conditions, an organisation should hire professional criminal records check services that have access to specialised and public databases and automated software tools. This will not only ensure an error-free criminal checking process but also save costs to the organisation in terms of resources and capital in conducting their own checks.

By Shivangi, 5 yearsNovember 28, 2019 ago

Background Checks

Address Check – You Could Be Hiring a Fugitive

The importance of address details and their role in identity theft

Today, due to the increased digitization of personal information, identity thefts and frauds are on the rise. Increased counts of identity thefts are causing concerns while hiring suitable candidates. Address detail is an important personal information of any individual which can be attest to the identity of an individual. Unfortunately, they are easy to fake. A recent study of job applicants found that more than 15% of the candidates had lied about their current and permanent address details. Having robust background checks under such situations becomes extremely crucial. Also, the company needs to know the address of all its employees, as that is the most secure and sure-shot way of contacting any employee in case of emergencies. Hence, companies need to maintain accurate records of the addresses of individuals working for them. Address checks become important in such cases as the address is a vital part of identity verification and shows stability in the life of the candidate.

Overview of address checks

One of the most important factors of address checks is physical address verification There are two types of verifications:

1) Temporary address verification: Job candidates often need to move to different cities and locations for their work. In such cases, they choose temporary accommodations such as guest houses or PGs, or rented apartments as their temporary residence. Temporary address checks take into account the current lodgings of the candidate. This not only ensures better identity confirmation but also ensures that the candidate has been able to settle in the new location.

2) Permanent address check: Apart from confirming the applicant’s current or temporary address, it is important to verify his or her permanent address as a way of confirming identity. Permanent address proofs are a more robust form of checks as they can be traced back to the original residence of the employee. Tracing a permanent address also ensures a proper identity check.

Address verification services and the importance of address checks

Performing thorough and rigorous address checks can be a tedious and expensive process. Hence, it is often advised to use professional address verification services. They not only possess software and automated tools for accurate address checks but also come with a repository of knowledge about common fraudulent practices and their safeguards. It is also more economical, especially for small and medium companies, to hire a third-party address verification company instead of spending resources and manpower on developing their own team.

Professional address verification services often use advanced technologies like GPS tracking and digital logs of addresses, APIs that return multiple known addresses upon entering the street name among others. By using effective AVS (address verification service) APIs, companies can reduce delays and errors in their address verification process.

Address checks are incredibly important because the address of the employee is an important platform for correspondence both for pre-employment and post-employment proceedings and documentation. Also, if the employee is found to be on the run after stealing company property or unethical practices, having a record of the address can simplify locating the fugitive. Company executives can also locate a former employee of the company using address records for various purposes. In cases of suspicious or disturbing employee behavior such as constant absenteeism or issues with conduct, the address is a secure way of contacting the employee, thus ensuring proper measures.

By admin, 5 yearsNovember 28, 2019 ago

Background Checks

Benefits of Conducting Employees’ National Identity Verification

Identity theft – A growing concern

There is a growing concern in the world today about identity theft. A bulk of personal data and sensitive information is available on the Internet which can be accessed by Internet frauds and hackers. Due to the ease of access to this information, there is a steady rise in identity thefts and frauds. In 2016, a whopping 15.4 million individuals were victims of identity theft, as per a study conducted by Javelin Strategy and Research. In India itself, 77% of all financial frauds and scams were the result of identity theft as per the study conducted by Experian India.

In order to tackle this growing threat of identity theft, new processes, and methodologies like Identity verification are being introduced. Identity verification involves checking the authenticity of personal data like name, date of birth, address, and other personal details. However, personal details like name and date of birth are easily accessible on the Internet and can be easily exploited by fraudsters and hackers.

Identity theft usually involves activities like illegal access to personal data, fake documentation, hacking of accounts, and so on. This can have serious repercussions on the victims leading to the loss of jobs and financial stability. An absence of proper surveillance and a lack of unique concrete identifiers is the main reason for such fraudulent activities. This is where biometrics come into the picture

The rise of biometric database

With the advent of biometrics, identity verification has become not only more secure, but the turn-around time for identity checks has also diminished significantly. Biometric databases take unique identifiers like fingerprints, iris scans, palm prints, voice patterns, and so on as input data for identity verification. Since every individual has unique biometrics, these identifiers are perfect for protection against fraud.

In order to further understand the efficacy of biometric identity verification, consider the following case. A company that lacks biometric capabilities posts an opening for a job. After evaluating a candidate, he/she is successfully hired. But instead of the actual candidate, it is their twin who shows up for the job. Without a biometric system, this identity fraud is almost impossible to detect. This example perfectly demonstrates the concrete and reliable nature of biometric data.

Identity verification using advanced technologies

Traditional methods of identity verification were not only cumbersome but also inaccurate. Automation capabilities, auto-managed online databases and advanced APIs have given rise to a much more efficient and simpler platform for identity verification and background checks.

Having the database of all the details of the candidate online not only saves time and cost but also allows companies to easily browse through huge amounts of candidate data in a simpler fashion. With the removal of human intervention in database maintenance, both turn-around time and accuracy of identity verification has greatly improved. The integration of APIs into the background screening processes of companies have established a platform for easy report generation and allows for scaling of identity verification processes during the growth phase.

Apart from confirming the identity, you need to check the background of the person by looking at his/her educational records, criminal record and employment verification of previous jobs to form the complete picture. Identity verification can also be done through PAN card, Voter ID and passport.

Also Read: Identity Verification: Tech-Enabled Identity Checks – An Overview

AuthBridge has partnered with various government platforms which can provide details about the individual’s track record.

By abhas, 5 yearsNovember 28, 2019 ago

Background Checks

Seasonal Hiring? How important is Background Verification

Businesses need to have strong background verification systems and policies to ensure that they hire the right candidate for the right job without sacrificing ethics and integrity of the company. Strong background verification processes map the candidate’s skills, experience, education and attitude to the requirement of the company.

They also check for possible criminal records and history of drug abuse that might bring dishonour to the brand name. The importance of conducting background Verification is well understood in case of permanent employees, but what of temporary manpower like seasonal employees?

By abhas, 5 yearsNovember 28, 2019 ago

Background Checks

Employee Screening – Reasons for Background Check Failure

Nearly seven out of ten businesses have been affected by bad hires, according to a CareerBuilder report. Identity thefts claimed more than fifteen million victims in the past two years. Injuries at the workplace, theft, data, and security breach are just some of the concerns that prompt companies across the world to take up employee screening or employee background verification.

Why is employee screening critical?

In the U.S., one out of five employees face a threatening or hostile environment at the workplace, and on average, close to sixty billion dollars are spent annually on serious injuries at the workplace.

Employee screening is conducted by 96 percent of U.S. organizations while 89 percent of companies conduct employee verification to make the workplace safer for customers and other employees.

There has been a 500 percent increase in Employee background verification on social media in the past decade.

Employee background verification helps employers make the right hiring decisions which can go a long way towards mitigating workplace thefts, violence resulting in injuries, data or material theft, and sexual harassment incidents.

Competitive employment market compounding the problem

In India, initiatives such as Digital India and Make in India are raising the demand for a talented workforce but the competitive market is also giving rise to resume frauds. The emergence of new technologies and low investment from the private sector has compounded the problem. In the Railways sector, two crore people sent applications for one lakh posted job vacancies in 2018 while at least fourteen thousand applied for a peon’s post in Haryana. Given the stiff competition, many candidates resort to glorifying their resumes to increase their chances of being hired. Many candidates inflate their salary slips in the hopes of bagging a lucrative offer, while others claim false designations to jump up the corporate ladder.

The recent spate of fraud in some reputed financial institutions and the safety concerns in shared economy models have highlighted the need for employment verification and a thorough background check. Organizations are increasingly investing in background screening to protect their corporate reputation and to ensure financial security.

Main reasons why background checks fail or have discrepancies

According to the report released by AuthBridge, India’s leading employee background verification company, the overall background verification failer or discrepancy levels significantly increased to 15.21% in 2017 from 10.29% in FY 2015. The report highlights that in 2017, 15 out of 100 cases had an element of mismatch between the information supplied on the resume versus what was verified. The resume discrepancy levels have considerably risen to the tune of 48% as compared to 2016. Among all categories of personal information, employment-related information was the most misrepresented at 12 percent in 2017. This is followed by a misrepresentation of address which stands at 6.67 percent, while reference check frauds were at 3.35%. Many people produced fake addresses that could not be traced while others listed an address where they were not residing.

Employee background verification and reference checks conducted by AuthBridge revealed that most people lied about their previous employment tenure and provided referees who did not respond. As compared to 2015 when 2.25 percent of referees did not respond, in 2017, the figure increased to 2.99%. The other major discrepancies in reference checks relate to the incorrect tenure mentioned and the non-availability of documents. Forged or fake education documents were also common as revealed during the employment checks or education checks. Significantly, the financial services industry encountered maximum levels of discrepancy and this is the industry that is most prone to data and material thefts as has been witnessed in recent times.

Also Read: Top 5 Checks to Consider for Conducting Background Verification

Due diligence with employee background verification can weed out potential wrong hires while helping companies make evidence-based information when it comes to promotions or partnerships.

By admin, 5 yearsNovember 28, 2019 ago

Background Checks

Employee Background Verification for the Startup Ecosystem

The emergence of new business models New business models in India are emerging that are changing the way we live or do business. The entrepreneurial mindset has caught up in a big way and India is recognised as a fast-growing destination for startups. Boosted by angel investors, groups and crowdfunding initiatives, the ecosystem is currently seeing a “flooding” of entrepreneurship backed by innovative ideas.

In 2017, more than a thousand startups were launched, which brought India to the third position in the world as far as startup ecosystem is concerned, after the U.K and the U.S. Intense competition from other countries notwithstanding, India is all set to emerge as the leading startup destination in the world in the coming years. As per a NASSCOM report on startups, 5,200 technology startups were seen in the IT sector in 2017 alone. Tier II cities are also joining in the startup bandwagon even as major metros including Bengaluru, Mumbai and Delhi retained their top positions.

Bengaluru having earned the reputation of being a startup capital is expected to generate more than two lakh jobs from 11,500 startups by 2020. Most of the startup growth is centred around technology, IT, big data, e-commerce and fin-tech. The rising popularity of e-commerce and shared economy models are changing the business landscapes. Instant delivery of goods and services is now possible and convenient. With the click of a mouse, service providers including beauticians, bankers, plumbers or food delivery can be summoned any time.

Why investors insist on background checks for startups

While the booming startup landscape is exciting news for the economy, there are risks inherent in the shared economy blue collared jobs. The rise in contract work, temporary hires and shared models also highlight the security concerns. The recent spate of crimes and frauds, whether it is the drivers or technology support scams, underscore the importance of conducting a thorough employee background verification and employee screening. Where earlier only employees were subject to background checks prior to hiring, the need of the hour is now employee screening and due diligence for startups.

Instant verification that can generate trust and speed up the business alliances or startup investments call for professional technology-enabled solutions. Wrong hires cost much more than money, with the damage to reputation, at times, being irreparable. Particularly when it comes to startups that are cash-strapped, there is no room for bad hires or wrong investment decisions.

As per an Economic Times Tech article, investors are increasingly hiring professional employee screening or employee background verification firms to do background checks on startups. One of the recent reports showed that a minimum of one fraud in 2017 was encountered by 82 percent of executives. With the sexual harassment scandal rocking the reputation of a leading cab service provider a couple of years back, the company faced major investor scrutiny and backlash.

Common areas where background verifications fail

When investors commit their money to a startup, they are obviously looking to recover their investment while protecting their reputation. In this scenario, hiring professional employee background verification firms to check on the credibility, personal integrity, credit history, criminal records, experience and financial history is of utmost value to the investor.

AuthBridge conducted a comprehensive survey in 2017 and found that most failures in background verification are related to employment information, address and education and reference checks. Many provide false employment details while faking documents related to educational qualifications. Fake addresses and references are the other common pitfalls encountered in background checks.

Also Read:Weed out Fraudsters: Instant Employee Screening Solutions

AuthBridge, as the leading employee background verification provider, offers the best technology-driven solutions for investors and employers. A wide range of employee verification services, including employment check, education check, address check and reference check are provided.

By admin, 5 yearsNovember 28, 2019 ago

Background Checks

Why is Background Verification Service Vital for Small Businesses?

Due to the limited size of the workforce, small businesses operate on an intimate level. They do not hire as many employees as your typically large corporations and therefore are much more dependent on each individual employee. Employees often need to take on multiple responsibilities and interact with each other in a close-knit fashion. Due to the increased importance of an individual employee, small businesses are heavily dependent on background verifications.

Along with work safety issues, hiring managers need to vet the applicants rigorously on the basis of their skills, educational background, criminal records and other similar details. They also need to assess the personality of the applicants to check if they will be a proper fit for their close-knit teams. Despite the criticality of strict background verification, a lot of companies often skip this step. The reason- lack of proper budget and screening tools. This is where professional background screening services come into picture.

By outsourcing the process of background screening, small businesses can save capital (which would otherwise be invested in infrastructure for in-house screening) and can ensure high efficiency in the screening process. Choosing the correct background verification service can be a difficult task. With the constant shift in laws and regulations and applicants misjudging themselves, choosing the right service provider is of critical importance.

There are various factors that must be taken into consideration while selecting a background screening service. The first and foremost is their level of compliance with regulations of not just the region but also of the company. Added to this are factors like turnaround time, technological considerations and cost.

Also read: Top 5 Checks to Consider for Conducting Background Verification

By admin, 5 yearsNovember 27, 2019 ago

Employee Screening

Risk & Compliance

Financial Intelligence

Identity Verification

Utilities

Enity/Business Level

Employment

Banking & Payments

Fraud Detection

Professional

Background Verification

Due-Diligence

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What's New

iBRIDGE 2.0 – The Next-Gen Background Verification Platform

Resource Library

Help Center

Featured Resource

KYC solutions in the modern economy

Partnering with professionals for KYC solutions in India

Challenges faced in C-suite hiring

Lack of proper policies and job descriptions

Employees at which designation must go through criminal records check?

Are there regulations regarding criminal verification?

How long does it usually take to conduct a Criminal Verification?

What are some of the common records available?

How to conduct a criminal record Verification?

The importance of address details and their role in identity theft

Overview of address checks

Address verification services and the importance of address checks

Identity theft – A growing concern

The rise of biometric database

Identity verification using advanced technologies

Why is employee screening critical?

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