Perpetrators of fraud without criminal records

Pre-employment background screening has proven to be one of the most effective ways to prevent fraud in companies, based on the Report to the Nations 2022. But is conducting pre-employment background screening alone enough to prevent fraud? How can companies address the potential risks that may arise after the recruitment process?

A study in the aforementioned report found that only 6% of the perpetrators of fraud had a record of fraudulent behavior. The remaining candidates had no indication of prior fraudulent behavior.

However, it should be noted that based on the same report, approximately 42% of the fraud cases studied were not reported to law enforcement. Due to this large percentage of unreported legal cases, it is very possible that the percentage of repeat fraud perpetrators between companies is highly underestimated.

The potential to commit criminal acts

With perpetrators of fraud having clean records, there is no guarantee that the candidates who pass pre-employment screening are free of the risks of fraud. Even candidates who have never committed fraud can be at risk of committing fraud in the future, since behavior is a dynamic factor that can change throughout the course of a person’s life.

An employee who has passed the pre-employment screening process still has the potential to show “red flag” behaviors. It is entirely possible that during the work period, an employee loses their professional license or commits a crime that is not known to the company and harms the company or other employees in terms of costs and productivity.

Given these risks, companies need to instate further prevention efforts, such as conducting post-hire screening.

Post-hire screening

While pre-employment screening helps companies uncover risks before they hire candidates, post-hire screening helps them minimize the long-term risks they may be exposed to after hiring.

Post-hire screening allows companies to periodically screen their employees. The method is not vastly different from the pre-employment screening process.

The checks include media checks, criminal records, credit checks, residence checks, and social media activities, as well as education certificates in the case of employees continuing to higher education.

Post-hire screening particularly needs to be done when employees are going to be promoted. This is to ensure the employee’s integrity and qualifications are appropriate for and aligned with the new position.

Integrity Asia has more than twenty years of experience in providing background screening services, both in the form of pre-employment and post-hire screening.

Screening is done through Prisma, a one-stop platform that can be integrated with your company’s HR information system.

Get more information about ongoing employee background checking services to protect your organization’s assets from potential fraud caused by problematic employees. Contact our customer service for more details.

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Photo by Ant Rozetsky on Unsplash