How Background Checks Reduce the Risk of Fraud
How to spot frauds?
Why is fraud such a big deal? In Australia alone, the estimated cost of fraud amounts to $8.5 billion annually. Sadly, 60% of fraud cases take over 3 years to detect, 61% of fraud cases result in no recovery, and a whopping half of Australian businesses experience economic crime.
So, what can we do about it?
Background Checking and Online Reference Checking
Background checks delve into an applicant’s history to verify areas such as work rights, educational qualifications, disclosable criminal records, driving records, and suitability to work with children. In other words: verifying whether this applicant IS who they say they are.
Reference checks can provide a comprehensive picture of the applicant’s likely performance in your organisation, based on their performance in previous roles.
Traditionally completed over the phone, moving to online reference checking offers the following efficiencies:
Improved response rate (as referees can complete it at their convenience, outside of business hours if needed)
Automated reminders to complete
Time savings for recruiters (as there is no need to chase up referees or spend time on the phone)
Reduced time to hire
Secure platform enables identity verification of referees (on the phone, we cannot tell whether the referee is who they say they are – or just a friend of the applicant! See Hamish and Andy hilariously demonstrating this critical flaw of phone reference checking…!)
Improved quality of responses (in writing)
Numerous checks can be collated in one place (single dashboard)
Removes the impact of unconscious bias (questioning style over the phone, and interpretation of responses)
Why are these checks important?
Given that 50% of Australian businesses experience economic crime, combating fraud needs to be a top priority. Background and reference checks can reduce liability (of businesses as well as of recruiters), protect your brand, and help to provide a safe workplace.
In the past 12 months alone, we have seen numerous high-profile cases of deception in the media: a politician falsifying his university qualifications and military award, medical professionals with bogus qualifications, and cases where charities have been defrauded of funds.
The most common discrepancies uncovered in background checks are falsified employment records, falsified educational credentials, and failure to disclose criminal histories. Depending on the particular check(s) required, conducting background and/or online reference checks can cost less than $100 – and in some cases less than $50. This is a small price to pay for peace of mind that your applicant has provided you with honest and accurate information about themselves.
Your background and reference checks can be completed in the same, self-service portal, can provide automated email and SMS communications to candidates, and can also integrate into your ATS.
For more information on background checks or online reference checks, contact us today!