Guarding against Financial Fraud in your Hiring Process

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Is the challenging economic climate leading to more financial fraud?

Matrix Security Watchdog (MSW) has seen a 20% increase in the last nine months in candidates holding County Court Judgements, no doubt because of the cost-of-living crisis and global economic downturn. In this article Susie Thomson, MSW’s MD defines how you can protect your business from employing unsuitable people during the long winter and ongoing challenging economic climate.

Prioritising Financial Vigilance

In the midst of economic uncertainty, employers must prioritise safeguarding their resources and financial stability by making astute hiring decisions. While the temptation to quickly fill crucial positions is strong, overlooking thorough candidate screening can have dire consequences. Comprehensive background checks may extend the recruitment timeline, but they are indispensable in ensuring the selection of the right candidate. A misstep in this regard could not only send employers back to square one but also jeopardise the safety, stability, customer relations, and reputation of their business – the last things any business needs in the current climate.

Streamlining Screening for Financial Prudence

The pivotal question is how to streamline the screening process, striking a balance between speed and accuracy. The solution lies in partnering with a savvy screening provider equipped with cutting-edge digital tools and online resources for rapid and meticulous candidate credential verification. In today’s resource-scarce business environment, handling this in-house can be challenging. This approach includes harnessing the power of social media background checks, where experts swiftly and skilfully scrutinise an individual’s online presence to identify any conduct incompatible with their prospective role. This can encompass behaviour that might compromise job performance, endanger colleagues and customers, or raise financial instability. Additionally, it helps uncover potential privacy concerns like information leaks.

Mitigating Financial Risks through Smart Screening

Furthermore, open banking can be employed to validate employment history and assess secondary job activities. Securely accessing bank statements, payroll records, and HMRC data, among other smart screening techniques, significantly expedites the process while reducing the inherent risks associated with traditional screening methods, such as the often subjective and unreliable candidate CV and employer references. Outsourcing these tasks to an external expert partner eases the burden on employers and their staff, allowing them to allocate resources more efficiently toward core business functions.

As Shazia Ejaz, the Recruitment and Employment Confederation’s Campaigns and Insights Director, highlighted at a PBSA event earlier this year,

“Providing swift, effective, and accurate screening will empower employers to keep pace with the dynamic employment market. It will also play a substantial role in addressing workforce shortages by enabling the rapid screening of the extensive pool of candidates when needed, without compromising on quality and safety. In today’s financial climate, prioritising vigilance against financial fraud and CCJs is paramount to secure the success and reputation of your business”.

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