Employee Background Checks: A Requisite for all Businesses

Employee Background Check Concepts

Employee Background check concepts are inescapable for your organisation if you are looking to minimise risks surrounding a bad hire. The concept of an employee background check has become one of the most significant phases in the recruitment process.

The escalating figure of crime scenes and fraudulence incidents is a key justification why organisations take up this step as aside from the rising crime rates, organisations are also becoming hyperaware of their employee turnover rate, employee burnout, employee retention, etc. Employee Background Checks are a highly effective method of ensuring that organisations are recruiting the finest. What are the key concepts of conducting an employee background check and why is it substantial for corporations of all sizes and statures?

Concepts of Employee Background Check

In wake of the digital development, it is fair to say that the recruitment process has become quite demanding, and an employee needs to cross numerous phases to at the right time reach the finishing point. The Employee Background Check is quite a time-consuming concept as employers strive to have the greatest pick from the numerous candidates who have come up for the recruitment process. After the interview sessions are over, it needs some time to let the employee know about their joining since this is the time when most organisations go through the employee background check procedure. Some companies opt to perform this procedure in-house while some others hire external service providers to conduct a comprehensive check of the employee’s academic, professional, and even social presence. After the employer is gratified with the check, the employee is offered an appointment letter to join them.

CRI Group’s EmploySmart™ can be tailored into specific screening packages to meet the requirements of each specific position within your organisation. Ensure a safe work environment for all. Download our EmploySmart brochure or get a free quote.

Significance of The Employee Background Check and its Advantages

Organisations carry out such checks due to a myriad of reasons, some of these include:

1. Knowing the validity of the resume

Many candidates tend to embellish their experiences on their resumes and make use of such methods to obtain their desired job through such falsified recognitions. If a candidate does obtain their role through this method, they will not be able to handle the position well making this a complicated situation for the employee and the employer concurrently. Therefore, it is incredibly valuable to know what the candidate has falsified on their resume. An appropriate and comprehensive verification of the employee’s background can unveil all such truths in front of the employer. After knowing the true details, employers can make a judgment that will be more beneficial for the organisation as well as the employee.

2. Knowing about the nature of the candidate

Like the falsified details on the resume, candidates also tend to wear somewhat of the false mask of confidence on their faces while attending the interview. It is tricky to distinguish and judge a person in a conversation of a few minutes. If it is a career profile where the pressure is going to be intense, it is crucial to know whether the candidate can handle such pressure or not. Knowing the authentic behaviour and personality aids in evading bad hires. The experts of the verification check get you an appropriate note about the personality, nature, and behaviour of the candidate to determine whether they can match up to the demands of the needed position.

3. Knowing experiences at the past offices

Candidates produce diplomatic answers about their past experiences when a question is thrown at them about said experiences. Many of the experts suggest cracking this during the interview session as the employers must verify the factual scenario at the previous offices. It may turn out that the candidate had a terrible record at the last office, or it may also happen that the employer had fired the candidate from the last job. There can be a few things that can happen. You can of course offer the candidate a chance to clarify, but it is imperative to get the verification done before this.

4. Knowing criminal experience and legal support

Having an employee background check is also about having an awareness of any criminal experience a candidate could have potentially had. It can be unsafe for the organisation to hire an employee with such a background and place them amid unharmful employees. It is just as vital to know whether the candidate has legal support or not. If yes, it should be checked whether the candidate has misused the support in the past or not. If the candidate has misused the support in the form of a lawsuit or so in the past, they do the same for your organisation too.

What to include in Employee Background Check?

• History of employment: Verify the reference given by the candidate as it confirms their behavioural and working patterns with previous employers. This way, their overall performance, commitment, and proclivities can be assessed.
• Criminal background: It is essential to determine that the candidate does not have a criminal history. It is inevitable, principally for the profiles related to defence or trust.
• Credit history: Knowing the credit rating of your candidate is also important as this reveals the integrity of the employees. This can be done by completing an employee background check for the credit history.
• Terror Watch List: For the businesses running in countries like the USA, checking the Terror Watch List of their candidates is especially critical. Again, it is a necessity for security positions.
• Checking Social Security: Organisations should check the legitimacy of Social Security Number. Proper background checks of distinct names, aliases, date of birth, history of addresses, etc. This way, it can be found out if the candidate has been living with other names or anything else questionable which is not accessible in criminal records.
• Checking public/court records: This is done to check if the candidate has been or is implicated in any sort of court proceedings or not. This is incredibly significant in picking the right candidate that can offer comprehensive devotion to the job profile you are proposing to extend.
• Reference checks: There are two types of reference Employee Background Checks: personal and employment. Both facilitate in confirming the integrity, reliability, steadiness, and personality of the employee.
• Checking Sex Offender Registry: Sex Offender Registry check must be an integral part of the employee background check as you must not endanger other employees or consumers, especially in roles surrounding children and other susceptible individuals, by hiring a sexual predator.
• Education check: This sort of background check is carried out to determine the authenticity of the various credentials provided by the candidate you are planning to recruit.
• Driving Records: If your candidate is required to drive a company-owned vehicle, then checking driving records and license is essential for you.
• Record of Military Service: You need to pay attention to some key measures while hiring a candidate with a military service record. That is why checking the military service records of your candidates is also important.
• Compensation Record: Checking the candidate’s compensation claims from past employers is also significant before hiring an employee.

Measures to take for Employee Background Checks

Having a proper flow chart of different steps

• Organisations must have a consistent policy for the employee background check, and for this, responsible authorities should know about the different steps they need to follow for background verification. A flow chart of all the steps is often used for this measure as they are easily comprehensible across the board. 

Legal Assistance to understand the role of Local Laws in Employee Background Check

• An assortment of confidential data is involved in the background check which is why taking legal Assistance will help avoid many sorts of legal complications.

Opt for FCRA Compliant Employee Background Check

• As FCRA (Fair Credit Reporting Act) determine what you can and cannot do in your employee background check proceedings and govern all the background checks, organisations must ensure that they follow FCRA’s rules and regulation.

In case of any mistake or misunderstanding, allow a candidate to Clear Up that.

• There are instances in which the data an employer has received can be incorrect; it is important to offer the chance to a candidate to rectify those misunderstandings as it determines a prudent and productive practice.

Being aware of the difference b/w Investigative Consumer Reports and Reference Checks

• If you reject a candidate because of the Investigative Consumer Report, the candidate needs to be provided with a copy of that report. However, if the information was obtained via reference check, such as asking past employers, you need not give such details to the candidate.

Academic references Checking

• Academic circles and experience are easily exaggerated and manipulated areas in recruitment and can be problematic and at times difficult to identify. Therefore, the prospective employer ought to start their reference check from this point. Undeniably, there is no need whatsoever to employ an applicant who is not honest regarding their academic qualification as they would not be productive and are likely to have ill motives. Consequently, they could be a liability to your organisation. This kind of candidate cannot be trusted at all, and therefore there is no need why the employer should. However, it would be to think such an individual for their interest in your organisation, but never should one hire them.

Call current and former supervisors.

• At times, it can prove difficult to extract any information about an applicant due to some legal handles and the fear of being sued for character defamation or even libel where the information which would be given might be negative, especially from either the current or former employers of your prospective candidate. However, it is worthwhile to find out as the data available at your disposal allows for sound and appropriate decisions to be made for the benefit of both the organisation and other members of staff.

Checking one’s network of associates

• Undeniably, for those who have been in the personnel management department, it is most likely that they have a vibrant network of associates, friend colleagues and family members who would be willing to share information about a prospective employee. It is therefore essential and significant to gather information from them. It would not be surprising that one might even get more information from such people.

Browse online sites

• With the use of the internet and using several search engines or numerous social sites, one is likely to find crucial and critical information that would go a long way in facilitating the employer get sufficient data about either the applicant or the organisation that they have worked or claim to have worked for.
• This information might range from positive to negative, thereby allowing the employer to make the right decision. Undoubtedly, the internet is a sure and free source of data that any prospective employer should employ in doing a background check.

In conducting employee background checks, there are some golden rules that one needs to observe to avoid any legal and challenges in executing the duties of their human resources and making the background check most effective and efficient. These do and don’ts include but are not limited to:

Do’s

• Having a consistent background checks policy and detailing how the policy should be used.
• Getting legal advice on how to conduct background checks under the local legal framework.
• Giving the applicants a chance to clear up any faults or misconstructions appearing on their documentations and during the interview process is inconsistent with your background check.
• Employing the services of background check services compliant with the legal frameworks of your region
• Understanding the difference between background checks vis-à-vis investigative consumer reports.

Don’ts

• Avoid making decisions on using the background checks on an applicant-by-applicant basis.
• Avoid the assumption that some parts of the background check process routine
• Avoid making decisions without letting the applicant a chance to respond.
• Avoid assuming that any companies seeking information about an individual are legally compliant.
• Avoid requesting information about the character or personal and private of an individual while verifying the historical employment facts.

Fundamentally, employee background checks are not too viewed superficially as they play an important role in ensuring that neither the employer nor the organisation encounter loss or legal handles in exercising their mandate and role. Consequently, by attracting competency and matching the skills with the tasks, employers ensure that their organisations remain profitable and are sustainably produced and competitive in their respective fields.

Finally, the most critical information that these background checks elicit are vital and are diversified in range and scope depending on the tasks to be performed and are as follows:

Criminal Records

Indeed, background checks are instrumental in providing information about the individual, which would inevitably be vital, especially where the candidate is required to handle or maintain important levels of trust, confidentiality, and security. Consequently, this kind and level of reliability would not be forthcoming from a criminal record person.

Social Security Validation

Apart from and the individual being tax compliant, background checks guarantee the legitimacy of the applicant’s social security number. The Social Security Validation facilitates in and discovering of all the names, as well as aliases and any variations thereof, dates of birth in addition to the history addresses associated with the applicant.

This limits the incidents of the employer contracting an individual who has a criminal record or does not have any legal status of seeking and getting employed in that country or region. Further still, it provided information on whether the candidate has ever lived in unrevealed places or under other pseudonyms that could divulge unlawful records that wouldn’t have otherwise been established.

Address History

Address History background checks help in tracing prior addresses where the applicant could have resided and facilitated the establishment of where else the applicant could have lived, making it easier in the verification of their true identity and may form the basis of further interview questions as well as getting to know the candidate better.

Terror Watch List

With the prevalent threat of terrorism and the global danger posed by terrorists, a thorough background check is more likely to establish if your potential employee could have been involved in terror acts or whether they are in any country or even states terror watch list. Although this was explicitly imperative for security jobs, it has been deemed necessary in almost every profession due to the changing dynamics and tactics employed by terrorists and other criminal syndicates in the twenty-first century.

Sex Offender and human trafficking Registry Check

With the ever-increasing levels of human trafficking, child pornography, organ harvesting, paedophilia and sexually related abuse globally, it is paramount that for positions dealing with minors, the marginalised and the most vulnerable through background checks are a necessity rather than just an option to ascertain the credibility of the applicant to avert and reduce the prevalence of the vices above.

Necessities for conducting Employee Background Checks

• You need to have your full name, date of birth, and Social Security Number for doing a background check.
• If you want to check credit reports, military records, and school transcripts, you need the candidate’s permission.
• If you hire an outside company to do the background check, you need to take the candidate’s permission.
• If the candidate denies the permission, you will be entitled to take the candidate out of consideration for that job profile.

Are There Any Disadvantages?

One of the major disadvantages that you can see is the wastage of time and money. The organisation invests large sums of money in conducting such investigations, and most of the time, the person turns out to be a genuine one and with the time it takes to conduct these checks, the candidate may think that the organisation is not interested and hence, they may join some other organisation in this period.

Judging a candidate on their background deeds may not always prove to be fruitful either. It may happen that a candidate got trapped in a criminal, offence and in an actual sense, they are a gem of a person. But when you do not know the candidate personally, you will focus on the verification reports and let a genuine person go.

Opting for an employee background check depends on the type of your business and the kind of job profile you are going to hire that candidate. Getting an employee background check has become eminent today because there have been so many instances each day.  They are getting the verification done to get the employer the satisfaction that they are selecting a genuine person and will not hamper the reputation and environment of the company.

If there is still any uncertainty in your mind about conducting employee background checks, why not reach out to us? CRI Group has experts across the globe from all backgrounds who are trained to provide you with specialised, expert advice fit for your business needs. Get in touch today!

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Inadequate Due Diligence Hit Space-Transport SPAC Momentus $8 Million SEC Fine

Inadequate Due Diligence Hit SPAC Momentus $8 Million SEC Fine

Inadequate due diligence hit SPAC Momentus $8 million SEC fine after misleading investors. The Securities and Exchange Commission (SEC) has charged the Momentus particular purpose acquisition company (SPAC), its sponsor SRC-NI, the sponsor’s CEO Brian Kabot, the company, and founder Mikhail Kokorich – which involved in a $1.2 billion space-transport SPAC for defrauding investors and obscuring the CEO’s status as a US national security risk.

The Fraud Claimed

The SPAC, Stable Road Acquisition Corp, had sought to merge with Momentus, a private start-up, to take it public. Momentus’s key offering was a “microwave electro-thermal water plasma thruster,” a way of zapping water vapour to propel a spacecraft, intending to transport satellites into space.

But Momentus’s propulsion tech failed to show results, according to SEC filings. A test mission fell well short of the company’s benchmarks, and a former Momentus employee said that the test yielded “no data to suggest that that thruster would deliver an impulse of any commercial significance.”

According to the SEC’s settled order, Kokorich and Momentus, an early-stage space transportation company, repeatedly told investors that it had “successfully tested” its propulsion technology in space when, in fact, the company’s only in-space test had failed to achieve its primary mission objectives or demonstrate the technology’s commercial viability.

The order finds that Momentus and Kokorich also misrepresented the extent to which national security concerns involving Kokorich undermined Momentus’s ability to secure required governmental licenses essential to its operations.

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The Compliance Issue: Inadequate Due Diligence

The SEC’s settled order finds that Stable Road repeated Momentus’s misleading statements in public filings associated with the proposed merger and failed its due diligence obligations to investors.

According to the order, while Stable Road claimed to have conducted extensive due diligence of Momentus, it never reviewed Momentus’s in-space test results or received sufficient documents relevant to assessing the national security risks posed by Kokorich.

The order finds that Kabot participated in Stable Road’s inadequate due diligence and filed its inaccurate registration statements and proxy solicitations. The SEC’s complaint against Kokorich includes factual allegations that are consistent with the findings in the order.

“This case illustrates risks inherent to SPAC transactions, as those who stand to earn significant profits from a SPAC merger may conduct inadequate due diligence and mislead investors. Stable Road, a SPAC, and its merger target, Momentus, both misled the investing public. The fact that Momentus lied to Stable Road does not absolve Stable Road of its failure to undertake adequate due diligence to protect shareholders. Today’s actions will prevent the wrongdoers from benefitting at the expense of investors and help to better align the incentives of parties to a SPAC transaction with those of investors relying on truthful information to make investment decisions.

SEC Chair Gary Gensler

The Litigation Against Momentus, Stable Road, and Kabot

Associate Director of the SEC’s Division of Enforcement, Anita B, mentioned in her statement that Momentus’s former CEO alleged to have engaged in fraud by misrepresenting the viability of the company’s technology and his status as a national security threat, inducing shareholders to approve a merger in which he stood to obtain shares worth upwards of $200 million.

The SEC’s order finds that Momentus violated scienter-based antifraud provisions of the federal securities laws and caused sure of Stable Road’s violations. It also considers that Stable Road violated negligence-based antifraud provisions of the US federal securities laws as well as specific reporting and proxy solicitation provisions.

The order finds that Kabot violated provisions of the federal securities laws related to proxy solicitations. Kabot and SRC-NI caused Stable Road’s violation of Section 17(a)(3) of the Securities Act of 1933. Without admitting or denying the SEC’s findings, Momentus, Stable Road, Kabot, and SRC-NI consented to an order requiring them to cease from future violations. Momentus, Stable Road, and Kabot will pay civil penalties of $7 million, $1 million, and $40,000, respectively.

Inadequate due diligence hit SPAC Momentus $8 million SEC fine. Source: US Securities and Exchange Commission 

What do you actually know about the integrity of the 3rd party and their way of doing business? Do they adhere to (inter)national regulations on anti-bribery and anti-corruption? Is it possible that there is a liability risk?

Due diligence on potential business partners when adding a new vendor or even hiring a new employee is vital to confirm the legitimacy and reduce the risks associated with such professional relationships. Global integrity DueDiligence360^TM investigations provide your business with the critical information it needs in making sound decisions regarding mergers and acquisitions, strategic partnerships, and the selection of vendors, suppliers, and employees. It will ensure that working with an, i.e. potential trade partner will ultimately achieve your organisation’s strategic and financial goals.

At CRI Group, we specialise in Integrity Due Diligence, working as trusted partners to businesses and institutions worldwide. Our people work with energy, insight and care to ensure we provide a positive experience to everyone involved – clients, reference providers and candidates. CRI’s unique identity and vision evolved from our fundamental desire to support our clients and their candidates. Safeguard your business and its integrity with DueDiligence360™.

Our DueDiligence360™ expose vulnerabilities and threats that can cause serious damage to your organisation and can significantly reduce business. CRI Group is trusted by the world’s largest corporations and consultancies – outsource your due diligence to an experienced provider, and you will only ever have to look forward, never back.

CRI Group investigators employ a proven, multi-faceted research approach that involves a global array of databases, courts and public record searches, local contacts, industry and media resources, and in-depth web-based research. Our resources include:

Protect your reputation and the risk of financial damage and regulator action using our detailed reports. They enhance your knowledge and understanding of the customer, supplier, and third-party risk, helping you avoid those involved with financial crime.

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Risks of Cybercrime and Social Media: NEW PLAYBOOK

The risks of cybercrime claims many victims over many sectors. The PwC Global Economic Crime Survey 2020 found that a company falls victim to six frauds on average. The most common types are customer fraud, asset misappropriation as well as cybercrime. It also proved a roughly even split between frauds committed by internal and external perpetrators, at almost 40% each – with the rest being mostly collusion between the two. Few can deny the enormous technological advancements that are constantly taking place in the modern world. The internet, the computer, and other technological advancements have dramatically changed what it means to socialise, ‘chat’, and even read a book. Both the disadvantages and advantages of such developments are clear, and as technology gains pace, so have the unlawful activities of those who seek to take advantages of such developments.

According to a 2020 cybercrime report from Europol, COVID-19 sparked upward trend in cybercrime. In fact, since the beginning of the pandemic, the FBI has seen a fourfold increase in cybersecurity complaints, whereas the global losses from cybercrime exceeded $1 trillion in 2020. 

In other words, as technology evolves, the risks of cybercrime have become complex. The sense that one is safe from crime in the privacy of one’s own home has been lost. In fact, according to World Economic Forum’s “Global Risks Report 2020” the chances of catching and prosecuting a cybercriminal are almost nil (0.05%).

Take the First Steps Towards Developing Measures Against the Risks of Cybercrime! 

This playbook critically examines the growth of cybercrime, evaluating the risks it poses in terms of the different forms of cybercrime that exist and the regulations that seek to detect, prevent and punish them.

The extension of an old legislation to include cybercrime is not entirely effective – especially not for crimes committed within the realm of social media and social networking. Therefore the need to develop an ‘anti-cybercrime culture emerges. It has to be implemented on an international scale that safeguards these crimes – the promotion of careful use would therefore be facilitated to hinder such crimes before they can materialise. Our playbook includes:

• What is cybercrime and why is it important?
• Top corporate cybersecurity risks and 10 types of high-tech crimes
• How cybercrime impacts business and your company’s growth
• Cybercrime and regulations in place
• And how your response as a business matters – how to can you protect your business from cybercrime including advice and tips on how to telework safely

Download the full playbook today and learn step-by-step things your company can do to be better protected from cybercrime. Robust cyber-security, data protection, anti-fraud and risk management all come together to mitigate the dangers posed by hackers, phishers and other cybercriminals.

DOWNLOAD PLAYBOOK

With the playbook in your hands, you’ll learn about the most common cyber attacks. This includes viruses, phishing attacks and website hacks. You’ll also gain a better understanding of the consequences of different types of cybercrime.

To sum it up, the playbook provides best-practices and ways that companies are lessening their risk without spending prohibitive resources to do so. Above all, the right expert advice means that any company can be on the right track to protecting their customers, their assets, and their employees from the risks of cybercrime.

Who is CRI Group™ ?

Based in London, CRI Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence, Compliance Solutions and other professional Investigative Research solutions provider. We have the largest proprietary network of background screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be. CRI Group also holds B.S. 102000:2013 and B.S. 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI Group launched the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC™ operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC™ for more on ISO Certification and training.

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John Wood Group to Pay $177 Million to Settle Bribery Charges Inherited Through its Merger

John Wood Group Bribery Probe Trace Back to its Merger with Amec Foster Wheeler Plc.

The Importance of Due Diligence in Merger and Acquisition to Avoid a Similar Incident Happened like in John Wood Group.

Due diligence is understood as the reasonable steps taken to satisfy legal requirements in the conduct of business relations. That allows you to reduce risks – including risks arising from the FCPA (Foreign Corrupt Practices Act) and the UKBA (UK Bribery Act), to make informed decisions and to pursue takeovers or mergers with more confidence.

Unlike other kinds of control (audits, market analysis, etc.), it must be completely independent and rely as little on information provided by the researched subject. The other important difference lies in the methodology: commercial or financial due diligence analyses available information, investigative type provides reliable and pertinent, but raw, information.

Due diligence on potential business partners when adding a new vendor or hiring a new employee is vital to confirm the legitimacy and reduce the risks associated with such professional relationships. Global integrity due diligence investigations provides your business with the critical information it needs to make sound decisions regarding mergers and acquisitions, strategic partnerships, and the selection of vendors, suppliers, and employees.

It will ensure that working with an, i.e. potential trade partner will ultimately achieve your organisation’s strategic and financial goals. CRI Group investigators employ a proven, multi-faceted research approach that involves a global array of databases, courts and public record searches, local contacts, industry and media resources, and in-depth web-based research. Our resources include:

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FAQ: Employment Screening

Want to know what red flags are most often found on résumés and employment applications? CRI® Group’s EmploySmart™ experts provided some statistics on their latest pre-and post-employment screening engagements, giving insights into where companies are most vulnerable in the hiring process. The operations team found that providing incorrect employment details is the most common red flag, as it was uncovered in about 4.5 per cent of background screenings. This is followed by providing incorrect education degree details and having adverse media (unfavourable news or online mentions), both at 2.33 per cent.

Most employers would probably say that when it comes to educational background, the only thing worse than providing incorrect degree information would be outright claiming a fake degree – which occurred in nearly 2 per cent of cases. Other red flags included:

• Having a criminal record (1.5 per cent).
• A civil litigation record (1.27 per cent).
• Providing a fake address (also 1.27 per cent).

To round out the findings, the operations team found bankruptcy records, fake certificates and negative references among 0.85 per cent of those screened.

Get answers to frequently asked questions about background checks/screening cost, guidelines, check references etc. This eBook is a compilation of all of the background screening related questions you ever needed answers to:

• Does a candidate have to consent to process a background check/screening?
• How long does it take to conduct a background check?
• When should I conduct pre-employment checks?
• How often should I screen employees?
• How to collect references, and what to ask?
• How much does it cost to conduct background checks?
• What is the difference between employment history verification and employment reference?
• How do I check on entitlement to work?
• How to conduct identity checks?
• What will a financial regulatory check show?
• Is it possible to identify conflict of interest during checks?
• What is a bankruptcy check?
• What about directorships and shareholding search?
• Can I have access to a criminal watch list?
• Anti-money laundering check?
• Can we conduct FACIS (fraud and abuse control information system) searches?
• … and MORE!

Taken as a whole, it is the perfect primer for any HR professional, business leader and company looking to avoid employee background screening risks. It provides the tools and knowledge needed to make the right decisions.

Download your “Employee Background Screening FAQ” FREE ebook now!

FAQ employee background screening

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Background Screening Red flags: Numbers Don’t Lie

Want to know what types of red flags are most often found on résumés and employment applications? CRI® Group’s EmploySmart™ experts provided some statistics on their latest pre- and post-employment screening engagements, and they give insights into where companies are most vulnerable in the hiring process. background screening red flags

The operations team found that providing incorrect employment details is the most common red flag, as it was uncovered in about 4.5 per cent of background screenings. This is followed by providing incorrect education degree details as well as having adverse media (unfavorable news or online mentions), both at 2.33 per cent.

Most employers would probably say that when it comes to educational background, the only thing worse than providing incorrect degree information would be outright claiming a fake degree – which occurred in nearly 2 per cent of cases. Other red flags included having a criminal record (1.5 per cent), a civil litigation record (1.27 per cent), and providing a fake address (also 1.27 per cent). To round out the findings, the operations team found bankruptcy records, fake certificates and negative references among 0.85 per cent of those screened.

Deception Among Job Seekers is Real

Anytime someone intentionally provides false information in their résumé, they are committing résumé fraud – usually in the hopes of gaining a competitive edge in the hiring process. “There are even business services out there that will knowingly assist candidates with changing their résumé in this way, such as offering advice on how to hide employment gaps or how to add false information that looks realistic. Some will even provide fake transcripts and fake letters of recommendation” (HR Daily Advisor, 2018).

The same goes for fabrications on an application. It can occur anywhere in the process, and the candidate will likely continue to misrepresent themselves in the interview process to maintain their fraud. As mentioned above, helping candidates embellish or even fabricate credentials has become a business unto itself. “On the surface, these appear to be candidates taking desperate measures. But the candidates themselves may not be the only ones at fault. As recruitment has migrated online and become automated … opportunities for scammers have arisen. Professional recruiters, who get placement fees when they land candidates in jobs, have a clear incentive to game the system, Zhao says. They are ‘middlemen who can make significant profit by misrepresenting clients’” (Inc.com, 2019).

There is only one clear remedy and protection method to combat this type of fraud: thorough and comprehensive background checks. Most organisations, however, don’t have the time, resources, or the expertise to conduct the needed level of background screening on their own. This is where CRI® Group’s EmploySmart™ comes in. The robust pre-employment background screening service helps organizations worldwide avoid making uninformed and potentially harmful hiring decisions. As a leading provider of specialised local and international employment background screening, CRI® Group’s uses EmploySmart™ to provide risk mitigation and give business leaders confidence in their hiring process. EmploySmart™ includes a thorough menu of screening that fulfills your organization’s risk management needs. These checks include the following:

• Address verification – one of the red flags discussed above.
• Identity verification – what are they hiding? Falsifying one’s identity is a major red flag.
• Previous employment verification – candidates might claim false employment to beef up their résumés.
• Education & credential verification – screeners check degrees and education history.
• Local language media check – what is uncovered about the candidate in news reports?
• Credit verification & financial history – candidates who conceal financial problems can be a fraud risk (local privacy laws apply).
• Civil litigation record check – lawsuits can indicate red flags, background screening will uncover the details.
• Bankruptcy record check – when hiring someone for a financial or leadership position, it’s important to know if they have bankruptcy filings.
• International criminal record check – checking criminal records is essential for the safety of your employees and your business.

These are just a few of the essential checks that are part of the EmploySmart™ process. CRI® Group’s network spans the Americas, Europe, Africa, and Asia-Pacific for providing international risk management, background screening and due diligence solutions provider. Don’t tempt fate and invite red flags into your business by making risky hires. The proper pre-and post-employment screening will uncover those hidden things that a candidate might not want you to know. Contact CRI® today and learn more about how EmploySmart™ will help provide your organisation with that extra layer of protection you need. Get a FREE QUOTE now!

Filed under: Due Diligence, Employee Background Check, Pakistan, Islamabad, Pakistan, Karachi, Qatar, Doha, Resources, Shanghai, Singapore, Singapore, United Arab Emirates, Abu Dubai, United Arab Emirates, Dubai, United Kingdom, London, United States of America, New York by admin
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TPRM: When is it time to conduct third-party screening?

When to conduct third-party screening?

Why do organisations screen their employees but not the companies they work with? Failing to screen third-party screening to the same level as permanent staff will increase your risks on many levels – from brand reputation to loss of money.

The nature of business today is largely shaped by our connected world. Many organisations conduct business across international borders and/or overseas and as part of various strategic and beneficial partnerships. In fact, the technology revolution and other factors that have removed barriers from business make it more essential than ever to have suppliers, vendors and other supporting companies helping to establish supply chains in various locations. And while they can be a great benefit to an organisation, these partnerships also represent an inherent security risk.

Third-party screening in compliance perspective

Vendors, suppliers and other third-party partners are entities largely outside of your control. While your organisation might have a high level of internal controls and stringent standards for ethical conduct, the entities that you partner with might not share those controls or values. Therefore, if something goes wrong, their failings can affect your organisation in terms of financial loss, liability, and damage to reputation.

Europe’s horse-meat scandal in 2013 or Quest Diagnostics data breach in 2019 is strong examples. Major organisations like Tesco were caught up in financial and PR disaster when they found that some of their suppliers were using horse meat in products sold as 100 per cent beef. Consumers were outraged, and many of the larger companies caught up in the scandal admitted that they had not performed proper due diligence or closely monitored their suppliers and their standards. And in the case of Diagnostics, the exposed records of 11.9 million patients.

When is the right time to conduct due diligence?

While third-party risk management should be an ongoing process, there are certain times when it is absolutely crucial for any organisation. At CRI® Group, we counsel our clients always to use third-party screening when doing any of the following:

• Performing pre-merger and acquisition research
• Conducting pre-IPO due diligence
• Engaging new clients
• Employing, contracting or retaining foreign business partners
• Implementing a consistent and audit-worthy AML and anti-corruption compliance program

Dodging trouble

Conducting 3PRM due diligence investigations at the right time has helped our clients avoid some major pitfalls, including the following:

• Merging with an international business embroiled in several behind-the-scenes legal battles
• Getting caught up in making procurement decisions involving the inappropriate influence of government officials who were slated to receive kickbacks
• Partnering with organisations that were potential credit risks, have claimed bankruptcy, have dissolved stated companies or were faced with debtor filings.
• Awarding work to an overseas contractor with absolutely no prior experience
• Affiliating with a contracting company owned by a politician with significant influence on future awards

With a network of trained professionals positioned across five continents, CRI® Group’s third-party risk management (3PRM™) services will provide your business with a comprehensive approach toward managing all third-party management risks. Contact us today and learn more about how we can help you address all of your third-party screening and due diligence needs – get a FREE QUOTE now!

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About CRI® Group

Based in London, CRI® Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence, Compliance Solutions and other professional Investigative Research solutions provider.

We have the largest proprietary network of background screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are, we have the network needed to provide you with all you need, wherever you happen to be. CRI® Group also holds BS 102000:2013 and BS 7858:2012 Certifications is an HRO certified provider and partner with Oracle.

In 2016, CRI® Group launched the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification.

ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI® Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.

CONTACT US

Filed under: All Industries, All Regions, Due Diligence, Industry Insights, Resources, Third-Party Risk Management by admin
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Fraud Advisory Panel UK counter fraud 2019 report is out!

Fraud poses a major threat to the UK and the world. The slow progress in fighting fraud in 2019 was evident to all of us with the never-ending stream of news stories documenting bribery and corruption cases around the world in 2019. We documented each with our article on Top 10 Bribery and Corruption Cases of 2019  where we count down the stories:

• Juniper Networks
• Alstom
• Microsoft
• KPMG
• Samsung Heavy Industries
• Fresenius Medical
• Walmart
• TechnipFMC
• Ericsson
• Unaoil

But these cases helped some of the welcome signs that government and law enforcement were beginning to ratchet-up their interest in fraud with new regulatory updates. 2020 was looking promising to all fraud fighters around the world. Unfortunately COVID-19 pandemic has turned the tide in the fraudsters’ favour – creating the current environment of fear, confusion and economic uncertainty in which fraudsters thrive.

The latest Fraud Advisory Panel’s report, The calm before the storm UK counter fraud in 2019 highlights all of these and more. According to the report the SFO continued to conclude
successful deferred prosecution agreements (though still without converting any of them into individual prosecutions):

• 53% conviction rate (17 defendants out of 32)
• 11 criminal investigations opened
• 8 defendants charged (investigations closed without charge – 14)
• 16 defendants awaiting trial
• £3.9m funds recovered
• 11 new confiscation orders (combined value £4.1m)
• £1.5m for the first Account Forfeiture Order
• 70 total caseload

And all of the stories help illustrate the need for organisations to have proper controls in place to prevent bribery and corruption. A certification such as ISO 37001 – Anti-Bribery Management Systems standard can provide a comprehensive approach to mitigating bribery and corruption risk. Organisations of all sizes and industries should take steps now to ensure that they don’t end up on a future list of top bribery and corruption scandals. Only a well resourced, cross-sector, intelligence-led response can tackle fraud.

Staying one step ahead of any critical risk to your organisation is part of being an effective business leader. For assistance in developing and implementing a fraud prevention strategy, contact us today or get a FREE QUOTE now!

Who is CRI Group?

Filed under: Anti-Bribery Anti-Corruption Solution, Compliance Solution, COVID-19 Insights, Due Diligence, ISO 37001, Pakistan, Islamabad, Pakistan, Karachi, Qatar, Doha, Resources, Shanghai, Singapore, Singapore, United Arab Emirates, Abu Dubai, United Arab Emirates, Dubai, United Kingdom, London, United States of America, New York by admin
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Fraud Advisory Panel have set up a COVID-19 fraud watch group

The Fraud Advisory Panel have set up a COVID-19 fraud watch group.  A cross-sector and cross-industry coalition of trusted partners (including the Cabinet Office and City of London Police) who meet weekly to share information on emerging fraud threats and trends affecting business. The panel aims to act as a conduit to warn the public, private and third sectors about COVID-19 fraud risks. In addition to supply  preventative actions that can be taken.

Measures announced over recent months to deal with COVID-19 have seen our day-to-day life drastically changed forcing us to spend more time at home and online. Unfortunately, criminals are using every opportunity they can to scam innocent people and businesses. GOV.UK has also released advice and guidance on how to protect yourself and your business from fraud and cyber crime. This guidance explains simple steps you can take to protect yourself and your business against fraud and cyber crime and where to get help. The National Cyber Security Centre has also published advice on how to spot COVID-19 scams and keep remote working safe.

If you think you’ve been scammed or you’ve found something which looks like fraud or a scam, contact Action Fraud.

Staying one step ahead of any critical risk to your organisation is part of being an effective business leader. For assistance in developing and implementing a fraud prevention strategy, contact us today or get a FREE QUOTE now!

Have you read?

• Brexit poses new bribery challenges, ISO 37001 provides solutions
• Bribery and corruption plague Middle East, how can ISO 37001 help?
• As South Asia Grapples with anti-bribery compliance, ISO 37001 provides solutions
• Whitepaper: Organised catastrophe of international Pakistan airlines
• Rolls-Royce Case study: Ethics & Compliance
• ISO 37001 FAQ
• Are you ready for ISO 37001?
• Don’t have an ethical code of conduct? Your organisation needs one

Who is CRI Group?

Filed under: Anti-Bribery Anti-Corruption Solution, Compliance Solution, COVID-19 Insights, Due Diligence, ISO 37001, Pakistan, Islamabad, Pakistan, Karachi, Qatar, Doha, Resources, Shanghai, Singapore, Singapore, United Arab Emirates, Abu Dubai, United Arab Emirates, Dubai, United Kingdom, London, United States of America, New York by admin
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Ethical code of conduct: What should be covered?

Business leaders are usually quick to communicate their expectations to employees, especially when it comes to financial goals or tasks that they want to be accomplished. However, what is often lacking is a clear, concise explanation of what the organisation expects in terms of ethical behaviour. The recent article “Puffery or Not? Courts Examine Corporate Codes of Conduct” explains that although a number of federal courts have found code of conduct statements to be non-actionable puffery, given the uncertainty in the face of the novel CODIV19 pandemic, public companies are ought to review their codes of conduct and revise them if necessary to mitigate litigation risk. Ethical code of conduct:

Does your organisation have an ethical code of conduct? If not, you might be making assumptions that your employees know to conduct themselves in an ethical manner, when, in fact, this expectation only exists in a grey area in their minds – if at all. In fact, some employees who have engaged in fraud, corruption or other unethical situations have claimed that while they knew their behaviour was wrong, they thought it was implicitly accepted by their bosses and, in some cases, their company overall.

Rather than assume that ethical rules “go without saying,” every organisation should spell out what they expect of their employees when it comes to ethical behaviour. At CRI Group, we counsel business leaders on the principle that every organisation should have a written, carefully considered ethical code of conduct as part of their fraud prevention strategy. CRI’s Certification program through the ABAC Center of Excellence includes developing an ethical code of conduct as part of the training and development phase for clients.

What should be covered?

An ethical code of conduct should be tailored to your company and your organisation – no two will be the same. What are the risks inherent in your organisation? What about in your industry? A pharmaceutical company will have some different risk areas than a retail store, for example. A nonprofit organisation might have concerns that relate to fundraising, a government agency might be focused on preventing bribery or collusion.

The goal of an ethical code of conduct is to help all employees understand the expectation that they always behave in a legal and ethical manner, and that the organisation has zero tolerance for unethical behaviour. It should include the following focal points:

1. Business values

This can include your organisation’s mission and vision and should help set the tone for how the organisation relates to its clients, partners, its own employees and the public at large.

2. Guiding principles

The principles that guide your company include customer satisfaction, financial success and profitability, improvement and growth. Your company might also follow policies of corporate responsibility, such as respect for social and environmental issues, and support of the community and/or nonprofit efforts.

3. Role of leadership

This section of the code of conduct should state that management has clearly endorsed the code and that employees can approach any manager or executive with ethical concerns or complaints.

4. Regulatory and compliance

This section should communicate the organisation’s commitment to meeting all compliance requirements, from OSHA and EPA to Sarbanes-Oxley and Dodd-Frank. This reinforces leadership’s expectation that employees must act diligently and ethically to uphold those standards, as well.

5. Employee responsibility

Every employee, from top to bottom, shares the responsibility toward upholding the ethical standard defined in the code. Contractors and volunteers are also expected to follow the standard of behaviour.  Furthermore, the code should make clear that if the unethical behaviour is detected, turning a blind eye or deciding “it’s not my problem” is unacceptable. That is a breach of the ethical code.

CRI Group can help your organisation with the finer points of drafting and implementing an ethical code of conduct. ABAC Center of Excellence includes this critical piece as a part of any robust fraud, bribery and corruption prevention program.

After the ethical code of conduct is approved by company leadership, it should be read and signed by all employees (with the signed copies kept on file by the organisation). And it should be displayed prominently in the office. Unethical behaviour, including fraud and other corruption, is everyone’s problem, and it must be prevented, detected and reduced. Staying one step ahead of any critical risk to your organisation is part of being an effective business leader.

ISO 37001:2016 Anti-Bribery Management System certification is offered under CRI Group’s ABAC® Centre of Excellence, an independent certification body established for Anti-Bribery Management System training and certification, ISO 37301 Compliance Management Systems and Risk Management System certification. The program will be tailored to your organisation’s needs and requirements. For assistance in developing and implementing a fraud prevention strategy, contact ABAC today or get a FREE QUOTE now!

Who is CRI® Group?

Based in London, CRI® Group works with companies across the Americas, Europe, Africa, Middle East and Asia-Pacific as a one-stop international Risk Management, Employee Background Screening, Business Intelligence, Due Diligence and other professional Investigative Research solutions provider. We have the largest proprietary network of background-screening analysts and investigators across the Middle East and Asia. Our global presence ensures that no matter how international your operations are we have the network needed to provide you with all you need, wherever you happen to be. CRI® Group also holds BS 102000:2013 and BS 7858:2012 Certifications, is an HRO certified provider and partner with Oracle.

In 2016, CRI® Group launched the Anti-Bribery Anti-Corruption (ABAC®) Center of Excellence – an independent certification body established for ISO 37001:2016 Anti-Bribery Management Systems, ISO 37301 Compliance Management Systems and ISO 31000:2018 Risk Management, providing training and certification. ABAC® operates through its global network of certified ethics and compliance professionals, qualified auditors and other certified professionals. As a result, CRI® Group’s global team of certified fraud examiners work as a discreet white-labelled supplier to some of the world’s largest organisations. Contact ABAC® for more on ISO Certification and training.

Filed under: Automotive, Aviation, Background Investigation, Compliance Solution, COVID-19 Insights, Due Diligence, Employee Background Check, Finance & Professional services Industry, Insurance, IT & Telecommunications, Oil, Gas & Energy, Pakistan, Karachi, Pharmaceutical & Healthcare, Property, Resources, Third-Party Risk Management, United Kingdom, London by admin
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