U.S. Companies Report Alarming Increase in Employee Fraud

“Infinity screening” can protect businesses during the economic downturn, Accu-Screen reports

Chalk up one more negative consequence of the economic downturn: employee fraud and thefts are on the rise.

Employees facing increased financial hardships (such as having a spouse who was laid off, a sick family member or a home at risk of foreclosure) are more likely to take illegal actions to augment their incomes.

“The stress of these types of situations has lead to violence in the workplace, embezzlement and identity theft,” says Kevin Connell, chief executive officer and founder of Accu-Screen. “Employee larceny and other illegal acts can weaken or even ruin a corporation.”

In a February 19th Wall Street Journal article on this trend, Simona Covel reported: “Small companies are especially vulnerable because they often lack stringent internal controls to prevent fraud. Sometimes managers of affected companies attribute lost funds to lower sales – never even suspecting foul play.”

The following facts show how widespread this problem is:

* American organizations lose an average of 7 percent of their revenues to occupational fraud, according to the Association of Certified Fraud Examiners.

* The costs of fraud in the U.S. are estimated at $6 billion annually.

* Embezzlement has been the No. 1 financial crime for the past four decades; almost one-third of all company bankruptcies can be attributed to embezzlement.

* Fraud, identity theft and property thefts account for 60 percent of a company’s annual losses.

* Common employee frauds include false invoicing, check forgery, theft of cash and goods and setting up ghost employees or ghost vendors.

Many frauds are conducted by trusted long-term employees who are in positions of responsibility, such as bookkeepers and accountants. Companies should watch out for employees who are living a lifestyle that seems beyond their means, as well as employees who never take a vacation or try to prevent others from seeing the firm’s books or accounting software.

While most hiring managers understand the benefits of screening new hires, it’s less common for companies to continue screening their current employees. This can be a costly mistake. There is no guarantee that an employee who is hired with a clean criminal and credit record will remain that way.

Periodic credit and criminal background checks, also known as “continuous screening” or “infinity background screening,” have been shown to be effective risk management tools for companies and a major deterrent against potential fraud.

“The ‘employee from hell’ can kill a business in a New York minute,” Connell says. “Pre-employment screening reduces the risk of a bad hiring decision; post-employment screening minimizes the risk to which a company is exposed over the long term.”

By hiring a reputable background screening firm such as Accu-Screen, businesses can protect their company from fraud and help ensure their survival during the current economic crisis.

Human Resource Managers Must Be Vigilant When Doing Seasonal Hiring: “Resume Lies and Embezzlement are on the Rise,” says Accu-Screen

Major retailers and other corporations are gearing up for the all-important holiday shopping season. Amid growing worries about stagnant holiday sales and signs of a recession, companies are still hiring seasonal employees. In their hurry to hire temporary workers, however, many companies run an increased risk of employee fraud, embezzlement and other crimes.

Accu-Screen, a leader in employment background screening, has found that employee theft and fraud tend to increase in a rocky economy. Accu-screen frequently conducts criminal and sexual offender background checks for retail chains and malls that are hiring seasonal employees.

“In uncertain economic times, more employees are giving themselves a ‘five-finger bonus,’” says Kevin Connell, chief executive officer and founder of Accu-Screen. “I’ve seen numerous recent cases of people who’ve decided to get a salary increase by stealing from their employers.”

Connell advises hiring managers and others to be on their guard when evaluating prospective employees. They should avoid giving in to the temptation to hire in haste, since they’re likely to repent at leisure, Connell says.

Some high-profile cases of seasonal crimes include:

* A New Jersey con man stole $200,000 from eight companies in four states. He repeatedly got hired as a store manager, worked for a few days or weeks, then disappeared with the cash receipts.

* Three Nordstrom’s security employees and a “secret shopper” were arrested for taking part in a retail theft ring that stole store merchandise valued at $62,000.

* An actor who worked as a mall Santa was arrested by Interpol for producing child pornography and abusing young boys.

Many of these employees looked good on paper, but were hiding a criminal record, false identity or a checkered employment history. Connell has noticed an upswing in people who are lying on their resumes this year. He saw the same pattern during the economic downturns in the late 1990s and after September 11th, 2001.

“It’s frightening how much damage a bad or dishonest employee can do in their first thirty days on the job,” Connell says. He recommends that employers protect themselves by doing background screenings of prospective and current employees.

AccuScreen CEO Will Discuss Resume Lying on Fox 13 News Tampa Bay

In a segment to appear during the Fox 13 Late News, Kevin Connell of AccuScreen addresses the increased incidence of resume falsifications and provides advice for job-seekers and employers.

Tampa, FL / January 14, 2009 – AccuScreen Founder and CEO Kevin Connell will appear today on the 10 p.m. edition of the Fox 13 News in a segment focusing on resume lying among job-seekers. Following its broadcast the segment will be available for archived viewing on the Fox 13 website.

AccuScreen is a leader and expert in employment background screening, specializing in criminal background checks. Connell will speak on the most common resume lies that his firm finds in their work with employers. The most common resume falsifications involve these key pieces of information:

• Dates of employment
• Job title (inflated rank)
• Criminal records
• Salary level
• Education (e.g. bogus degrees from diploma ‘mills’)

• Professional license (e.g. MD, RN, CPA, etc.)
• Self-owned business (e.g. ‘ghost’ company)

“In a challenging economy, people tend to lie more,” says Connell. “I regularly teach classes and seminars about the routine causes of fraud in the workplace. These same elements are at work in resume lying and employers have a measure of control in addressing these factors.”

According to Connell, job-seekers must be made aware that in an especially competitive job market, employers are intensely scrutinizing employment backgrounds, education credentials, and other key information contained in their resume or application.

“It’s a buyer’s market for hiring managers and recruiters,” says Connell. “Our clients, who know that 43% of resumes we screen include a discrepancy, likewise know to be vigilant and thorough in their background screening measures.”

Those who wish to view the Fox News Segment during the on-air broadcast should tune in at 10 p.m. The segment will be available for viewing online. AccuScreen will provide a link to the recorded broadcast on their website.

For additional information about resume lying and matters of employment screening, AccuScreen provides an eBook, “The Business Guide to Background Checks” available on the company blog for download here: http://www.backgroundcheckscenter.com/

About AccuScreen, Inc.

Since 1994, AccuScreen, Inc. has been an industry pioneer, leader and expert in employment background screening, specializing in criminal background checks. Its reports are delivered to companies across the world in 2 – 72 hours. CEO Kevin G. Connell founded the company with a burning desire that companies hire the right people from the start, resulting in greater cost control and better safety in the workplace. Mr. Connell also serves as a national speaker and expert in negligent hiring, resume fraud, employee theft, and embezzlement.

AccuScreen CEO Will Discuss Resume Lying on Fox 13 News Tampa Bay

In a segment to appear during the Fox 13 Late News, Kevin Connell of AccuScreen addresses the increased incidence of resume falsifications and provides advice for job-seekers and employers.

Tampa, FL / January 14, 2009 – AccuScreen Founder and CEO, Kevin Connell, will appear today on the 10 p.m. edition of the Fox 13 News in a segment focusing on resume lying among job-seekers. Following its broadcast the segment will be available for archived viewing on the Fox 13 website.

AccuScreen is a leader and expert in employment background screening, specializing in criminal background checks. Connell will speak on the most common resume lies that his firm finds in their work with employers. The most common resume falsifications involve these key pieces of information:

• Dates of employment
• Job title (inflated rank)
• Criminal records
• Salary level
• Education (e.g. bogus degrees from diploma ‘mills’)
• Professional license (e.g. MD, RN, CPA, etc.)
• Self-owned business (e.g. ‘ghost’ company)

“In a challenging economy, people tend to lie more,” says Connell. “I regularly teach classes and seminars about the routine causes of fraud in the workplace. These same elements are at work in resume lying and employers have a measure of control in addressing these factors.”

According to Connell, job-seekers must be made aware that in an especially competitive job market, employers are intensely scrutinizing employment backgrounds, education credentials, and other key information contained in their resume or application.

“It’s a buyer’s market for hiring managers and recruiters,” says Connell. “Our clients, who know that 43% of resumes we screen include a discrepancy, likewise know to be vigilant and thorough in their background screening measures.”

Those who wish to view the Fox News Segment during the on-air broadcast should tune in at 10 p.m. The segment will be available for viewing online. AccuScreen will provide a link to the recorded broadcast on their website.

For additional information about resume lying and matters of employment screening, AccuScreen provides an eBook, “The Business Guide to Background Checks” available on the company blog for download here: http://www.backgroundcheckscenter.com/

About AccuScreen, Inc.

Since 1994, AccuScreen, Inc. has been an industry pioneer, leader and expert in employment background screening, specializing in criminal background checks. Its reports are delivered to companies across the world in 2 – 72 hours. CEO, Kevin G. Connell, founded the company with a burning desire that companies hire the right people from the start, resulting in greater cost control and better safety in the workplace. Mr. Connell also serves as a national speaker and expert in negligent hiring, resume fraud, employee theft, and embezzlement.