Institute checks and balances to lessen risk of internal fraud

The higher up the ladder, the farther someone has to fall — and the more damage they can do on the way down. When employers consider using some type of employment screening process, it is often targeted toward prospective employees in lower-level jobs, where the fear of a criminal record or a history of drug use might be at play. But executives in higher-level positions can have just as many skeletons in their closet, and they are often given the keys to the company’s assets on a far greater scale than those in the mail room.

The threat of high-level executives committing fraud is a real one, and it’s something that should be considered and checked out before anyone is given a contract or job offer. There are a few checks and balances your company should employ, to alleviate your risk of an employee committing fraud.

1. Create a culture that instills ethical business practices and honesty on every level. No one should be — or be perceived to be — above or beyond these rules.
2. Do your homework during the hiring process by conducting a thorough background check on all employees at every level. Again, nobody should be exempt from this process.
3. Have an airtight system of internal checks and balances in place to be able to detect fraud at its earliest point and stop it in its tracks. For example, business processes like recording sales, billing customers, collecting customer payments and updating customer accounts should be divided between several people. That way someone is sure to come across any differences in account amounts or information

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Majority of retailers surveyed conduct background checks

A recent survey by the National Retail Federation has found that nearly all of the country’s leading department stores, grocery stores, large drug stores, discount stores and restaurants surveyed — a whopping 96.6 percent — use some form of background screening during the application, hiring and employment process.

This includes pre-employment screening on senior executives, store associates, and particularly those in customer service. The survey also showed that retailers are concerned over potentially new Equal Employment Opportunity Commission guidelines that would “Ban the Box” – a term referring to the box asking about criminal history seen on most application forms – and prevent businesses from asking job applicants about their criminal history during the application and pre-employment process. Twenty-eight cities and counties across the country have “banned the box,” no longer asking potential employees whether they have any felony convictions.

The survey also found retailers conduct post-employment screening at a high rate on store associates, store management, and distribution center employees. The most common type of background check is the criminal history check, followed by the Social Security Number trace, and a check of the applicant’s sex offender status.

http://www.verifyprotect.com/