Detection and prevention of fraud can be complicating, not to talk of an economic recession that is an aid to fraud. The recent economic downtune is a contributor to fraud. According to the Association of Certified fraud examiners “Occupational Fraud: a study of the impact of an economic recession,” contends that the presence of the three side of fraud triangle – Opportunity, Pressure and ability to rationalize illegal behaviour might rise in the period of hardship.

Based on the submission above, a need to be proactive in fraud prevention with background check and due diligence is required.

The severe financial pressure/hardship could open up opportunity for fraud and the parties exposed to such are the corporate organization, small businesses and individuals. The projecting factor for such opportunity for fraud is the negligence of organizations and individuals to ensure background check, continuous background check and due diligence in its onboarding and business engagements. The need for background check and due diligence is vastly advised for proactive prevention and deterrence to secure organizations and business intentions. The following identifies the way background checking potential and existing employees can aid the protection of organization and individuals from potential employee fraud.

Prevent potential employees with falsified and embellished credential from accessing employment;

Employment requirement to access employment are based on attained training with certificate(s) showing competence in the area of expertise. Most fraudulent individuals have resorted to deliberately commit to falsify and embellish credentials to access employment. This act is as a result of pressure to access employment. In obvious situation, these pressure are triggered by the desire for selfish economic and social status reasons.

Here is a case on Prince who was disengaged from employment of over 18years. It was discovered that he falsified his academic certificate to access employment.

A background check exercise was conducted based on the request by the newly employed Human Resource Director. It was discovered that the educational certificate background check returned that Prince never graduated from the University that he claimed. Further report also indicated that he was expelled as result of immoral behaviour.

This case reveals the weakness of negligent hiring and the absence of background check policy in the organization. Prince had progressed within the organization for 18years before ensuring background check on him. A thorough audit report on his conduct after he had been disengaged revealed that Prince had fraudulently benefited from the organization, and he had nothing to loose for being disengaged because his access into the organization was based on document fraud for employment.

Prevent potential employee with overblown employment history from accessing employment;

Background Check previous employment claim by employers prior to employment should be a preventive strategy to decipher overblown past employment history to access employment fraudulently.

Derek, the Chief Financial Officer of XYZ Limited was disengaged after the organization had ensured a previous/past employment background check on his past employer as disclosed on his curriculum vitae. Derek accessed employment into XYZ Limited as a result of the opportunity (weakness) created by XYZ Limited. The organization was in dear need of a CFO urgently. Due to the urgency, Derek utilized the opportunity with a fraudulent strategy to access employment into XYZ Limited with an overblown curriculum Vitae.

From the above, the case highlight that a prospect’s previous employment history should be verified regardless of the urgency of the need to fill the position. A previous employment background check will help you understand that a potential employee had tailored his reasons for exiting previous employment, years of experience and the experience itself. An assumption that a prospect is cleared without a background check might pose a great ruin to your reputation and corporate asset.

Prevent potential employee with fraudulent Criminal history;

The degree of trust and responsibility accorded to a role within an organization should require a criminal record background check.

See the case of Norman defrauding his employer as a result of failing to ensure a criminal record background check.

Norman was recruited for a sensitive role but his employer failed to ensure a criminal record background check on him at the time of his employment. It was alleged that Norman was involved in siphoning huge sum of money from his employer. At the point of interrogation, it was discovered that he had a criminal history with the criminal registry department based on fraud issues with his past employer, and other nefarious business activities.

This case illustrates the importance of undertaking criminal record background check on candidates that are expected to fill sensitive role within an organization. When potentials migrate from other organization into another, a criminal record background check should be extended to ensure that such prospects are cleared to ensure suitability to man sensitive role.

Ensure due diligence on investments before committing funds into business deals during and after recession;

In the period of economic recession/hardship, there are pressure spree due to the demand to survive with minimal income. Organizations are not left out as they are the hit and soft target when it comes to fraud. Due to the need to sustain business, organizations tend to open up opportunity for fraud. Hence, it is highly advised that due diligence should be conducted at every point of business relationship before investing time, money and effort. The due diligence programme will ensure that the identity, business site verification, financial responsibility and corporate and social profile e.t.c. are confirmed to inform decision to deal or not to deal.

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