Every year embezzlement alone costs companies 4 billion dollars.
Yes, you read that correctly. Four.
Billion. Dollars. In fact, three out of every ten companies who file for bankruptcy do so
as a
result of employee theft. (We need
look no further than Worldcom and Enron
for evidence.)
This is because corporate embezzlement often leads to closed-doors, pricey pay-offs in order to avoid negative press, class action suits by angry investors,
increased insurance premiums, and more. The funds are seldom recoverable; the damage irreparable. So, how do you protect yourself from corporate embezzlement?
Don’t let it happen.
While this answer sounds simple, it really isn’t. This kind of crime is often sophisticated, and pursued over a long period of time in order to
better conceal the amount of funds being stolen. This is why a
credit check is an integral part
of your
background check process.
This is particularly true for anyone who may occupy positions of financial responsibility or inventory control. A credit check can bring to light certain
aspects of an individual you may not expect like that they don’t pay their bills on time (if at all) or that they've filed for bankruptcy on more than one
occasion. Someone with their history might be inclined to mismanage--or outright steal--money. Unfortunately, it happens more frequently than one would
hope--or expect.
And the standard online credit check won’t do the job either. Fraud specialists believe that you should follow the 10-10-80 rule.
It states:
Ten percent of your employees will always steal from you
Ten percent will never steal from you
Eighty percent would steal if placed under serious financial pressure.
So, while some do carry a low price tag, an online credit check you do yourself on a prospective employee might be tempting for its low price tag, you seldom
--if ever--know what you're really getting. Further, EBI is a
Consumer Reporting Agency. This means that as
with every part of our
background screening process, when we do perform a credit check
on your behalf we act with fairness, impartiality, and respect for both your and your employees' rights to privacy. This means you can count on us and be
confident your organization will be itself always fully compliant.
EBI offers far more than the standard online credit check including an in-depth search through current trade accounts, negative accounts that have been
paid late, forced collections, and more. Remember, if your company falls prey to embezzlement the lost funds will likely never be recovered--even if the
employee is caught, so let EBI screen your potential employees and help keep an eye on your shop.
