Are you hiring a crook?
Here is a tip from a past issue of our monthly member technical briefing, The General Ledger newsletter (www.aipb.org/general_ledger.html).
Most theft is committed by employees rather than outsiders. Some companies use background checks and consider the time and expense well worth it. But, as expert fraud examiners told our members in our General Ledger newsletter, you should, at least check the background of any employee who will have constant access to cash, checks, credit card numbers, inventory or any items easily stolen, computer programs that attach to payroll or accounts payable. Before hiring, check as many of the following as possible:
· Past employment. Although most employers will verify only position and dates of employment, tone of voice may reveal more. Ask prior employers if the applicant is eligible for rehire. A more aggressive (and less likely to be answered) question: "If you were me, would you hire this person?"
· Criminal convictions. Services such as Nexis and ChoicePoint have criminal conviction records for almost all large counties. If the candidate's former or current county of residence is not included, go to that county's courthouse and check the criminal courts division's criminal records.
· Drug screening. Many firms screen employees and potential hires for drugs. Frequent users may be more prone to theft or fraud.
· References. Astonishingly few employers actually call references, assuming that a former supervisor or coworker will give a good reference or that no applicant will give the name of someone who will give a bad one. But some people list important-sounding but false references, hoping you won't call one.
· Degrees, certifications, licenses. Always verify a degree, license, or certification with the school or issuing organization. Are they valid? Have they been revoked? Most issuing organizations will tell you if disciplinary action has been taken against a person.
· Get the candidate's consent. Many federal laws (e.g., the Fair Credit Reporting Act) and state laws cover the collection and use of information for hiring. Many require a candidate's written consent to obtain the information. Even when not required, it is advisable to get a candidate's signed authorization and release. Thus, it is crucial for your company to consult HR and/or legal counsel about laws and regs for:
1. requesting a candidate's authorization to seek information or to give a drug test;
2. the wording of the authorization or release that a company is asking the candidate(s) to sign; and
3. dealing with rejected candidates if information obtained was used to make the decision.
