Credit check: Your Employee’s Lifestyles Could Lead to Frauds

In addition to criminal checks, drug tests, and background checks, companies also need to run a credit check.

Recognizing earlier red flags is critical in mitigating fraud risk. According to Report to The Nations 2020, 85% of all fraudsters displayed at least one behavioral red flag while committing their crimes. There are seven common behavioral red flags: (1) Living beyond means (2) Financial difficulties (3) Unusually close association with vendor/customer(s) (4) Control issues and unwillingness to share duties (5) Irritability, suspiciousness, or defensiveness (6) “Wheeler-dealer” attitude (7) Divorce/family problems.

Living beyond means and financial difficulties are sequentially ranked as the first and second red flags in every study since 2008. Therefore, in addition to criminal checks, drug tests, and background checks, companies also need to run a credit check. The more a company knows about the candidates’ background, the less risk of bad hires. Some companies even evaluate the credit history of their employees on a regular basis, especially in the framework of evaluating promotions because a higher position means greater risk. Ensuring an employee has a healthy credit score minimizes the risk. A credit score is a credit bureau statistical indicator that summarizes the creditworthiness and collectability of a subject.

Conducting credit checks on your candidate and employee has never been easier through our Credit Scoring service. What are the benefits of Credit Scoring?

• Assess your candidate’s trustworthiness and aptitude in managing money
• Reduce the risk of hiring candidates with financial issues
• Get immediate result through our instantaneous service

Do not compromise your company, for more information about credit scoring and other types of checks: