Is Employee Theft Ruining your Business? Three Ways to Uncover your Risk

January 20th, 2010

Employee theft and fraud committed by employees cost US companies approximately $20 billion in 2009. Furthermore, 30% of all businesses failed due to employee theft. All business owners believe that they have protected their company from any external criminal acts but what about those crimes that happen on the inside? Have you protected your business from the threat of employee theft? Below are three ways to know for sure.  

  1. Consider all Possibilities of Employee Theft.

 

Many companies do not realize how many different crimes constitute employee theft and how these petty offenses can actually add up. Consider the following ways in which an
employee can steal from your company (and what is this doing to your reputation and your business?) 

Employee theft can include:  

  • Corporate crimes, including embezzlement, extortion, insider trading, racketeering, money laundering, bribery and blackmail. These are often referred to as white-collar
    crimes and, if the employee is caught, he/she faces felony convictions, hefty fines and time in prison. However, many white-collar crimes go undetected, especially in multi-million dollar corporations. Furthermore,
    even if the employee is caught, you may still lose out on hundreds of thousands of dollars in theft.

 

  • Petty theft crimes include stealing money directly from the cash register, stealing goods from the store or the back of the store and switching price tags on
    items. Many employees will take an extra $20 from the cash register every once in a while and, odds are, you, the owner, won’t even realize it. However, $20 dollars here, $50 dollars there, can all add up and
    negativity impact your business. It is important to be aware of every cent that comes in and goes out.

 

  • Fraud crimes include forging receipts in order to pocket the money, creating false accounts and pocketing the money, accounting scams, shipping and billing scams
    and voiding receipts to pocket the money. Fraud crimes are often hard to detect because they go on behind closed doors and often involve your most trusted employees.

 

  • Additional employee theft schemes include stealing office equipment, stealing gift cards, or pocketing ‘lost and found’ items. Sure, these crimes may seem
    petty in comparison to some of the other employee theft crimes discussed, but they can still negatively impact your company.

 

  • Insurance crime includes such things as claiming worker’s compensation for a false injury. This is something that occurs more often than most employers realize, especially in labor-intensive industries.

 

  1. Invest in Internal Security Measures

 

Many businesses will have video cameras, mirrors and even security guards set up throughout the store and in the parking lots. However, what about in the back? It might be
a good idea to install a security camera in the back room as well as in the front of the store just to be sure that everyone is behaving. Some larger companies will include an internal security department on
the payroll. These specialists are responsible for auditing and monitoring how employees are spending their time, and the company’s money. They will investigate any leaks in the system and ensure that all finances
are 100% accounted for.  

Of course, the amount of internal security you invest in will depend on your financial budget, the risks involved and the size of your business. Companies with hundreds of employees
or financial institutes will most certainly benefit from internal surveillance while a small corner store may look into additional methods of monitoring employees. One of the best ways to avoid employee theft is to stop it
before it can happen. This brings us to the third point and where employment background checks come in handy.  

  1. Know Who You Are Hiring

 

Once you are aware of the different employee theft crimes that may be going on behind closed doors, it is important that you uncover the truth about your employees or any potential
employees. 45% of all potential employees will have a criminal record, poor driving record, poor credit report or a worker’s compensation claim. What this means is you could be risking hiring the wrong person
without even realizing it.  

Knowing your potential employee’s background through employment background checks is a great way to eliminate the chances of being a victim of employee theft. Red flags on an employee background check include any shoplifting or white collar crimes convictions
on the criminal background check, any unusual worker’s compensation claims on a credit report, or any problematic debts on a credit report. Although these factors will not necessarily predict that an employee
will cause problems and steal from your company, they do separate this employee from someone who has a clean employment background check and high credit rating.  

There is no way to 100% guarantee that your business will not be caught up in an employee theft scheme at one point or another. The best ways to prevent employee theft before
it happens is to simply be informed, be aware and be prepared with the right knowledge, the right internal surveillance equipment and the right employment screening services.  
 
 

 
 
 
 

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Shocking Employee Statistics – How Employment Screening Can Literally Save your Business

January 20th, 2010

Recent numbers published by
the American Data Bank suggest that employment screening services are
more important than ever. Employee theft rates are up; employee security
is down; furthermore, potential employees are continuously falsifying
their resume or ‘forgetting’ to reveal important information about
their past, leaving employers in the dark about who they are putting
on the payroll. The following figures warn that something needs to be
done to stop employees from taking advantage of the trust of companies
and employers across America:  

  • 40% of information
    on a resume is misrepresented while 30% of applications contain false
    material/information.
  • 45% of all potential
    employees either have a criminal record, a bad driving record, worker’s
    compensation claim or a bad credit history.
  • 95% of all companies
    are victims of theft yet only 10% ever discover it.
  • 40% of American
    drivers have a violation on their driving record. Furthermore, 25% do
    not have insurance at all.

 

But what can be done? Apart
from only hiring those you know, love and trust (and committing nepotism
in the process), is there any way to protect your company from these
scary numbers? Many employers are choosing employment-screening services
as a way to ensure they know exactly whom they are hiring and thus protecting
their business from these shocking statistics.

The Meaning Behind the
Statistics

 

Let’s look at these numbers
closely and see what the statistics actually mean for any regular Joe
employer. Regardless of whether you are the owner of a large corporation
or the manager of a small retail store, these statistics can affect
you if you do not take the necessary precautions. 

  • 40% of information
    on a resume is misrepresented while 30% of applications contain false
    material/information.

 

A resume is the gateway for
all potential employees and, most often, the first impression an employer
will get. A nicely typed resume brimming with successful job positions,
dotting references and high caliber credentials will leave any employer
impressed and wanting to learn more. However, often the information
you just read is actually not true. Employees will falsify information
about previous work experience, job titles and education. It can be
fairly easy to add a few job titles to the “Work Experience” section
to try and beef up your resume. Furthermore, a year from Harvard has
a much nicer ring than the truth, which could be that the education
received was from an insignificant community college (and the applicant
dropped out after two semesters). Unfortunately, many employers are
none the wiser until they have already hired the person and discovered
that he is not the expert his resume suggests. One of the ways to eliminate
this risk is to perform an employment screening background check, focusing
on the social security verification of the employee. Employers will
receive a list of previous work experience related to the employer’s
social security number so they can see separate fact from fiction when
searching through resumes.  
 

  • 45% of all potential
    employees either have a criminal record, a bad driving record, worker’s
    compensation claim or a bad credit history.

 

This is an appalling statistic
that no employer wants to hear. Out of the 20 people you just interviewed
in the past week, 9 of them have a secret past that could negatively
impact the future of your company. And, you most likely would be none
the wiser based on the information received through the interview and
application process. The only way to know for sure what skeletons are
in a potential employee’s closet is to perform a criminal background
search, a driving record search and a credit report. These three employment
screening searches can help you filter the good apples from the bad.  

  • 95% of all companies
    are victims of theft yet only 10% ever discover it.

 

There are so many different
ways an employee can take advantage of a company. While some employees
who commit employee theft will use traditional theft methods such as
stealing directly from the cash register or taking stock from the back
room, others have employee theft down to a science. Some employees will
even work together to commit white-collar crimes that could end up costing
you hundreds of thousands of dollars. You cannot afford to watch over
every single employee every single day, but you can insure your company
against employee theft crimes by checking a potential employee’s criminal
background record. If there are instances of shoplifting, theft, fraud,
larceny or other white-collar crimes on the criminal background record,
then this could be an indication to continue your search for your next
top employee elsewhere.  

  • 40% of American
    drivers have a violation on their driving record. Furthermore, 25% do
    not have insurance at all.

 

But what does this have to
do with your company? In some instances, it won’t matter what kind
of driving record a potential employee has. However, in many cases,
it will. If your employee will have access to a company vehicle, then
all of a sudden your name could easily be tarnished if the employee
happens to get in an accident. Furthermore, if driving is part of the
job description (for example, bus drivers, taxi drivers, real estate
agents, delivery truck drivers, service workers, laborers, etc), then
you could be not only endangering your company’s reputation, but also
others on the road or at the job site.  Just because a potential
employee has two previous DWI offenses on his record does not necessarily
mean he will commit another drinking and driving offense. However, are
you willing to put your company at risk on these odds?  

Playing it Safe with Employment
Screening 

Employment screening is not
necessary in every instance; however, more and more employers refuse
to risk it and are including employee screening as a routine part of
the hiring process. Perhaps the next decade will bring these appalling
employee statistics down. But, until then, it’s a good idea to protect
your business now to avoid becoming just another statistic in the future.  

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Criminal Background Check

January 12th, 2010

When it comes to your business or your property, you really can never be too careful. Unfortunately, in the world we live in there are a lot of people with skeletons in their closest. Of course, you should never let someone’s past dictate their future but it is always a good idea to know who you are hiring and who you are leasing an apartment to. A criminal background check is your best bet when it comes to easy and fast access to someone’s past.

Why Criminal Background Checks? Landlord Protection

It may seem a little much but a criminal background check is actually quite necessary in certain situations. Below are some main reasons why landlords opt for a criminal background check before leasing their apartment, house or loft to just anyone:

  • “It provides me with the security that my other tenants are safe”
    In some instances, a criminal background check can reveal that your perfect tenant is actually a convicted criminal. If your tenant has been recently convicted for sexual conduct, child pornography, rape, murder or any of the other serious convictions, your other tenants especially those with young children, have a right to be protected. Furthermore, a black tick mark for break and enter or car theft may suggest that your prospective tenant is not the right fit for your building.
  • “It assures me that I will get paid on time and every month.”

You may think twice about having a tenant that has a criminal conviction for tax fraud, welfare fraud or any other type of fraud or theft. A clean criminal background check can give you the assurance that your landlord will pay on time, every time and has never been in trouble with financial convictions before.

When you are looking for a tenant you should also consider a few other factors apart from just how they fair on their criminal background check. Additional factors to consider may include:

  • How they will fit in with what you are looking for – a quick interview is often the best way to determine what potential tenant will fit in with your current tenants and the building code of conduct.
  • Their lifestyle – you might want to consider their working hours, their late night partying ethics and their relationship status. Those who want to party all night may not be the most suitable candidate for a small family-friendly building.
  • Their employment history and current income – you want to make sure your tenant will be okay with rent every month and a steady job is often your best indication of this.
  • References from previous landlords – previous landlords can often provide you with the extra information and truth that the interview process can often not pick up.

These additional factors, combined with a criminal background check provided by Quick Background Checks, can ensure you the most success in finding the right tenant for your empty apartment.

Criminal Background Checks for Employer Safety

Your business is a big part of your life which is why it is essential to hire only the best employees. A criminal background check is not the only thing you should look into when it comes to the hiring process but it can definitely provide you with the relief and assurance that you are making the right decision about who you put on your payroll:

  • “I can trust my employee at all times“
    There are a number of factors that need to be considered when it comes to hiring an employee for your company. Regardless of whether you run a multimillion dollar corporation or a simple shop on the corner, you need to be sure that your employee can be trusted by himself. A criminal conviction for shoplifting or internal employee theft may provide you with enough concern to think twice about hiring that certain employee.
  • “I know who I am working with.”
    A serious criminal conviction is something that you will most likely want to avoid in an employee. Something such an embezzlement, bribery and other white collar criminal convictions could suggest that your potential employee is not who you thought he was. This is something you will want to know before it’s too late.
  • “I don’t have to spend my time worrying about my decision”
    Running a business is hard enough work without being preoccupied with worrying about what your employees are doing behind closed doors. Although many companies will invest in internal security measures to monitor for theft and additional corporate crimes, you do not want to spend your time (and money) worrying about these internal concerns. With a clean criminal background check, you will be assured that there is no need for constant surveillance on your employee. You can focus on the external affairs required to run a successful business.
    Make sure you combine your criminal background check with the additional employee screens:
  • The interview – an interview is a quick way to get to know your employee personality wise and see if he is a good fit with your company. You will be able to learn about his previous education, experience and background which can help you make the right decision.
  • References from past employers – apart from the interview process, it is a good idea to contact references, including past employees to see what others have to say about your potential employee. After all, your interview can only tell you so much.
  • Credit and employee history check – an employee and credit check, which can also be performed by Quick Background Checks, will provide you with the assurance that your employee is doing okay financially and that he is telling the truth about his previous employment history. This trust is important when choosing the right employee for any business.

Quick Background Checks Can Help

Quick Background Checks can provide you with anyone’s criminal record for a low onetime fee of $18.00 to $29.95 depending on the level of search you require. There are no monthly fees, no membership payments and no long-term contracts. You get the information you request without the hassles that usually come with attaining a criminal background check. Quick Background Checks is your one-stop shop for any landlord or employer looking to protect their business and obtain the most suitable candidates for the open position or apartment.

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Driving Record

January 12th, 2010

The roads are a dangerous place to be. There are accidents every single day that can result in serious injuries and fatalities, many of which can be avoided by slowing down and using your road sense. Police and state troopers are hired to watch the highways and make sure that all drivers are sensible and sober on the roads. Your driving record is your personal highway performance card that will keep track of any traffic fines, fees and violations including unpaid car parking tickets, speeding tickets and DWI arrests. Your driving record will not only determine your rate of insurance, but it can also hold the key to your credibility on the road and in life.

Obtaining a Driving Record

There are a number of reasons to obtain a driving record from Quick Background Checks. Many individuals will request their driving record as a way to be sure that all the information is accurate and up to date. No company is perfect and thus some driving records may come back with a few errors. These errors could negatively impact your insurance rating. You want to make sure your driving record is 100% accurate in order to get the best discounts possible.

Many people will assume that obtaining a driving record check is one of those annoying processes that take time and effort. This is actually not the case when using Quick Background Checks. In fact, Quick Background Checks can provide you with anyone’s personal driving record in a matter of seconds for a small one-time fee of $19.95. There is no muss, no fuss and the report only takes around 30 seconds – you will get exactly what you are looking for at the click of your mouse.

Driving Record Security for Employers

Many employers, especially those who require a driver, will obtain a driving record as part of the hiring process. There are a number of positions that require an employee to be on the road. Truck drivers, taxi drivers, bus drivers, mail men and delivery drivers will spend most of their day driving but there are many other positions that require a clean record. Maintenance workers, city workers, real estate agents, construction workers, plumbers, electricians and thousands of other careers will require driving the busy streets on a daily basis. Furthermore many of these drivers will have access to a company vehicle which means you need to be extra careful about who you put behind the wheel. After all, it is not only the reputation of the employee on the line- it is also your company that could be negatively impacted if a traffic incident occurs.

A driving record check is a fast and easy way to get information about anyone’s past driving record and can provide you with the assurance that you are hiring the right person for the job. Although three driving while intoxicated convictions does not necessarily mean your potential employee will drink and drive again, it is probably a wiser decision to choose someone for the position that has a clean driving record.

You should be on the lookout for some of these potential problems on a driving record:

  • DWI/DUI arrests or convictions. Driving while intoxicated is a serious offense that can come with serious consequences for those driving the vehicle and for others on the road. Driving while intoxicated laws also apply to recreation vehicles such as boats, ATV’s and snowmobiles. A clean DWI record is a good indication that your potential employee knows when to call a cab which can suggest he is responsible both on and off the roads.
  • Speeding Reports – although we all have been known to speed once and a while, if your potential employee is constantly caught speeding on the roads, there is a good chance that he will also be racing to, from and during work hours as well. You want an employee who is efficient but not at the risk of speeding on the dangerous roads. Furthermore, many people on the roads will report dangerous driving activity to the authorities. If your company’s name is on the vehicle, then your company’s reputation could be at stake.
  • Number of car accidents in the past – a poor car accident driving record could be due to a string of bad luck on the roads, or it could be an indication that your potential driver is not as cautious as you would have hoped.
  • Unpaid parking tickets – sure, unpaid parking tickets are really nothing to get worked up over, it can be problematic if your employer is constantly parking your company vehicle in the wrong spot.
  • Additional driving offenses – ‘whisky plates’ as well as license revocation, vehicle impoundment or license suspension can also be warning signs that your potential employer may not be the right candidate for the job.

Quick Background Checks and Driving Records

Keep in mind that obtaining a driving record check is not the only way to ensure that you are hiring the best employee. It is important to also conduct an interview with your potential employers to make sure they are a good fit with your company’s structure and style. You may also want to perform a criminal background check, an employment history check and a credit check, all of which can be done with Quick Background Checks. These three checks will provide you with the assurance that your potential employee is financially stable, has been honest about his past employment and does not have any previous criminal convictions that could impact his ability to work for you.

Don’t risk choosing the wrong person – skip the confusion and the worrying by obtaining a driving record check today.

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Who Should Consider Government Background Checks?

December 22nd, 2009

Government background check services provide anyone with the key to important information. They are fast, effective and affordable. But who will really benefit from knowing a person’s criminal history, credit rating or employment record? Below we’ve listed five groups of people who should always consider government background checks for their important personal and business transactions.

Employers and Business Owners

There are a number of different services available for employers and business owners who are looking for a smarter way to ensure they are hiring the right person. Employment screening services include social security verification, credit checks, criminal record checks and driving records to name a few. All of these can be useful for business owners who want to learn a little more about their potential employee.

Social security verification checks will give you access to your potential employee’s employment history so you can check his resume against the truth. It’s a good idea to know that your potential employee does really have 5 years of experience in journalism (like his resume suggests) before hiring him as one of your top reporters.  For those who run a transportation business or for those who need an employee to drive here, there and everywhere, a driving report can ensure that your potential employee is not a convicted felon charged with multiple DUI offenses.

Any employer and business owner can benefit from criminal background checks, especially when they discover that their potential financial analyst has been recently convicted of fraud. This is something you want to know before you put an employee on the payroll. After all, not knowing this information could end up costing you hundreds of thousands of dollars in insider corporate crimes down the road.

Landlords

Landlords have a responsibility not only to themselves, but also to their other tenants, to ensure that their choice in tenant is the right one. Tenant background checks provide landlords with the confidence that they are renting their apartments out to the right people. A criminal background check will confirm your potential tenant is free of any criminal behavior including sex crimes and terrorist crimes. This will provide your other tenants, especially those with small children, with an additonal level of comfort. A credit report can establish a level of trust that your tenant will be able to pay the rent on time, every time. Excessive debt and penalty fees for outstanding payments might suggest that your tenant will have trouble coming up with the rent each month.

Additonal government background check services that are useful to landlords include the eviction search, which allows you to see potential tenants’ previous renting histories. If they have been evicted on numerous occasions, then perhaps you should keep looking. Landlords can also benefit from employment background checks, as it will provide them with the assurance that their tenants are actively employed and thus able to make the rent each month.

There is nothing worse than discovering that your ‘perfect’ tenant is a party-loving, unemployed, rent-skipping deadbeat. Government background checks can help you avoid these tenants before they move in down the hall.

Parents with Small Children

When children are involved, it’s always a good idea to take advantage of government background check services. Parents will conduct background checks on babysitters, nannies or care givers as a way to ensure that their children are not being left in the hands of a convicted criminal. A criminal search is a great way to identify sex offenders in the area. Parents may also want to check up on neighbors, teachers, counselors, instructors and other adults that their children spend a lot of time with. After all, you just never know and, when it comes to your children, you can never be too safe.

Important Business Transactions and Personal Decisions

For those looking into buying a business, government background checks can provide you with the assurance that the person you are buying the business from, as well as the business itself, is up to par. A background check, such as a credit report, will be able to identify the various strengths, weaknesses, opportunities and threats that you could be facing down the road. If you are considering doing any type of business, it is always a good idea to look into a criminal background check or credit report for your own security.

Many people who are considering marriage will also look into government background check services before walking down the aisle. Why?  Because you have a right to know exactly who you are marrying. We’ve all heard horror stories about people discovering their spouses are not who they thought after the papers have been signed. It’s best to know that you are not committing to a life with a convicted murderer or promising to support someone with a mountain of overwhelming debt. You need to look out for your best interests and often a government background check will provide you with the added incentive to take the plunge and get down on one knee.

For Litigation Purposes

If you are currently involved in any type of legal filing, then government background checks often provide you with the ammunition you need to win your case. A background check can reveal the truth, and nothing but the truth, about people. Often when someone lies about their credit report, their driving history, or their employment history, they are also lying about other aspects of their life as well. Proving the truth with government documented background checks can be used to attack their credibility where it counts – in a court of law.

Government background checks can provide anyone with information about friends, family members, neighbors, teachers, lovers, employees, landlords and so forth. In the above five instances, knowing this information can help avoid any serious errors in judgment and provide you with the knowledge needed to make the right decision.

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