How To Shield Your Staffing Agency From Identification Fraud

identity fraud

Staffing Trade Analysts (SIA) and Bullhorn Market companion Sterling each have a constructive outlook on the way forward for staffing, though a latest report from each organizations outlines a number of challenges for HR leaders. Most regarding of those is the latest progress of fraud circumstances, particularly id theft.

Fraud is changing into a serious ache level for staffing corporations

Out of the 188 staffing corporations surveyed within the report, 40% responded that one in all their finish shoppers discovered that an worker had lied about their id through the previous 12 months. Moreover, nearly a 3rd (30%) of employers surveyed cited flagrant circumstances of false id the place an unknown particular person began work however was not the identical one who had accomplished the pre-employment evaluation. This knowledge solely additional underscores the dangers companies face, particularly as distant positions change into the norm throughout industries.

Is there a transparent manner to assist defend your organization from id fraud? In spite of everything, few HR professionals count on to return face-to-face with a stranger they’ve simply employed after operating a radical staffing background test. The report means that the reply might lie in debunking a few of the misconceptions the staffing trade has about background checks.

What precisely does a background test embrace and what doesn’t it embrace? Surprisingly, the SIA report discovered that almost two-thirds of respondents mentioned that they incorrectly assumed that their background test supplier was additionally conducting id verification as a part of their commonplace service. Usually this simply isn’t the case; more and more, HR leaders needs to be cautious to ask if their supplier presents this service and whether or not it must be added to core background screening providers. Earlier than committing to a background test vendor, ask precisely which providers can be found. This info will aid you to decide on the fitting companion that can assist you meet HR compliance and nurture a office primarily based on belief and security.

Distant work and the necessity for id verification

Distant work continues to revolutionize the office and the staffing trade with it. Owl Labs not too long ago reported that 56% of corporations permit distant work. SIA’s report reveals comparable findings associated to hybrid work, with 52% of workers surveyed reporting that they labored from residence a minimum of as soon as every week.

SIA’s unique analysis additionally outlines how the rise in distant work has contributed to the rise in id fraud. Certainly, 70% of the report’s respondents said that they count on cases of fraud to extend with distant work preparations, together with extra incidents of “deep fakes” and comparable superior felony technological methods.

This pattern has severe implications for HR leaders within the staffing trade. With a view to assist defend their distant workforce and proprietary belongings, extra vigilant hiring processes are wanted to forestall fraud threats earlier than they will pose organizational dangers. By making id verification step one of their hiring course of, HR employees can extra completely vet candidates and assist stop acts of fraud. SIA’s full report showcases knowledge revealing the position id verification is enjoying in combating fraud in organizations, proper from the start of the hiring course of.

The staffing trade has had – and continues to have – greater than its share of challenges within the wake of Covid and the rise of id fraud, however there’s additionally trigger for optimism. Identification verification is a number one manner companies are serving to to attain HR compliance and create robust cultures of belief and security. Uncover extra about these and different hiring tendencies associated to staffing background checks: click on right here to obtain the report researched and written by SIA and Sterling: “The Way forward for Identification Verification in Contingent Work: Flipping the Paradigm.”


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