Periodic screening to combat workplace fraud
BenchmarkingHR, November 30, 2007

Periodic screening of employees, in addition to pre-employment checks, is essential for employers to minimize the risk of falling victim to identity fraud, according to a major provider of background screening services.

First Advantage says fraud in the workplace costs Australian businesses more than $77.5 million each year and gambling and greed are the most common motivators of fraud.

Peter Stackpole, the Managing Director - Asia Pacific South of First Advantage, says the cost involved highlights the importance of checking a candidate's criminal record and their employment history.

“If someone has had four jobs in 12 months, it is worth investigating why. Missing petty cash or falsifying invoices may have played a role in why the person left each job, but may not have been reported to police.”

“To minimize the risk of hiring fraudulent employees, employers should thoroughly check as many components of the candidate's history as possible,” Mr. Stackpole says.

“The more points of reference an employer gains about a potential employee, the more informed the hiring decision.”

An estimated 25% of fraud reported to Federal Police involves identity fraud, and Mr. Stackpole says fraud puts a company's employees and customers at risk of having their identity stolen, as well as putting the business at risk of losing money.

“Many organizations are investing time and resources into the management of fraud detection rather than prevention. To minimize the risk of identity fraud, employers need to take a holistic approach”.

“Periodic screening, in addition to pre-employment screening, helps to monitor staff as to whether they have developed any criminal affiliations or are involved in any activity that could put the organization and their colleagues at risk.”

Mr. Stackpole says background screening is used by as few as 10% of Australia's largest employers.

“While thorough background checking is common in the financial services sector, few other Australian industries have adopted this level of screening in their recruitment process with the same rigor unless legally required.”

“Employers, who combine background screening with internal controls to protect sensitive information, minimize the chances of fraud occurring in their workplace and help ensure the safety of their employees' identity.”