Limiting Exposure to Fraud when Employing New Staff

If an organization is to prevent fraud successfully it must have effective policies that minimize the chance of hiring or promoting individuals with low levels of honesty, especially for position of trust.

Pro-active procedures should include the following, before appointing any employee:

• Conduct a background investigation on the individual who apply for employment or for promoting to a position of trust.
• Thoroughly checking a candidate’s education, employment history and personal references.



These above procedures are also known as staff vetting, which means that all applicants are screened thoroughly before employment is offered.
The following should be checked as part of the screening process:

• references,
• criminal records,
• civil records,
• disciplinary records,
• insolvency,
• other businesses,
• qualifications – CV audit,
• technical competence,
• psychometric testing

These preventive measures, however time consuming and costly, would assist them in appointing the correct candidate.