How Reference Checks Can Help to Prevent Workplace Fraud

Employers are often stunned to find that a valued employee has been committing workplace fraud, but statistics show that it is often the most trusted employees who steal. Many of these employees are terminated without charges ever being filed, leaving them free to target the next company and trusting employer. Introducing these fraudsters into your organization can have devastating consequences. Aside from workplace fraud, they can also open you up to legal trouble and even bankruptcy. To ensure you aren’t the next fraud target, conduct a thorough reference check on potential employees before you make a job offer. The degree of background investigation you conduct on a potential employee should reflect the potential for damage. Confirm past employment, confirm education that they claim they have and actually call references. Depending on the level of the job, you may also want to consider conducting criminal, civil and bankruptcy checks. Background checks and verifications can weed out some higher-risk employees and are the key components of your company’s fraud prevention program.

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