Background Check Expert to Speak at ACFE Annual Fraud Conference on How to Stop Employee Fraud

Attorney and background check expert Lester Rosen, Founder and CEO of Employment Screening Resources (ESR), will present a session titled ‘Employment Background Checks: Stopping Employee Fraud at the Point of Entry’ on Tuesday, June 19, 2012 from 1:40 PM to 3:00 PM at the 23rd Annual Association of Certified Fraud Examiners (ACFE) Fraud Conference & Exhibition in Orlando, Florida. For more information about the session, visit http://www.esrcheck.com/Newsletter/ESR-Speaks/Employment-Background-Checks-Stopping-Employee-Fraud-at-the-Point-of-Entry-130/.

“Employee fraud is often caused by dishonest and fraudulent employees,” says Rosen, author of ‘The Safe Hiring Manual,’ the first comprehensive guide to employment screening background checks. “An applicant who is dishonest in obtaining a job may well be dishonest once in the job.”

In this intermediate level session, Rosen will help employers and fraud professionals avoid bad hires in the first place by practicing due diligence in their hiring programs and will also cover both best hiring practices and background checks, including the current debate over the use of social media websites and credit reports in hiring. The presentation will conclude with a 25 question ‘Safe Hiring Audit.’

Rosen is a frequent presenter nationally on background check issues as part of the “ESR Speaks” Training Program at http://www.esrcheck.com/ESR_Speaks.php. He founded Employment Screening Resources (ESR) in 1997 and the firm is accredited by the National Association of Professional Background Screeners (NAPBS®). He was also the chairperson of the steering committee that founded NAPBS, a professional trade organization for the screening industry, and served as the first co-chairman.

Employee or “Occupational” fraud is a major concern to businesses. The ACFE 2012 Report to the Nations on Occupational Fraud and Abuse estimates the typical organization loses five percent of revenues to occupational fraud each year. This figure translates to a potential projected global fraud loss of more than $3.5 trillion. The study also found that the median loss caused by the occupational fraud cases was $140,000, and that more than one-fifth of these cases caused losses of at least $1 million.

Some key findings and highlights of the ACFE 2012 Report to the Nations include:

  • The frauds reported lasted a median of 18 months before being detected.
  • Small businesses suffered the largest median losses due to occupational fraud since they typically employ fewer anti-fraud controls than their larger counterparts.
  • Approximately 54% of all fraudsters were between the ages of 31 and 45.
  • Males tended to account for roughly two-thirds of all fraud cases, and male fraudsters tended to cause losses that were more than twice as high as the losses caused by females.
  • Approximately 42 percent of occupational fraudsters had between one and five years of tenure at their organizations.
  • Perpetrators of fraud with higher levels of authority tended to cause much larger losses.
  • More than three out of four fraud cases in the study – 77 percent – were committed by individuals working in one of six departments: accounting, operations, sales, executive/upper management, customer service, and purchasing.
  • Most occupational fraudsters are first-time offenders with clean employment histories, with 87 percent of occupational fraudsters having never been charged or convicted of a fraud-related offense.
  • In the majority of cases – 81 percent – the fraudster displayed one or more behavioral red flags that are often associated with fraudulent conduct: living beyond means (36 percent of cases), financial difficulties (27 percent of cases), unusually close association with vendors or customers (19 percent of cases), and excessive control issues (18 percent of cases).

The ACFE 2012 Report to the Nations on Occupational Fraud and Abuse is based on detailed case information provided by Certified Fraud Examiners (CFEs) compiled from a study of 1,388 cases of occupational fraud that occurred worldwide between January 2010 and December 2011. The fraud cases in the study came from 94 nations — providing a truly global view into occupational fraud. The report, which includes recommendations, is available at: http://www.acfe.com/RTTN/.

AFCE is the world’s largest anti-fraud organization and premier provider of anti-fraud training and education. To learn more, visit http://www.acfe.com/. The 23rd Annual ACFE Fraud Conference & Exhibition takes place from June 17-22, 2012, at the Gaylord Palms Resort and Convention Center in Orlando, Florida. For more information, visit http://www.fraudconference.com/.

For information about how to help stop employee fraud with pre-employment background checks, visit Employment Screening Resources (ESR) – ‘The Background Check Authority’– at http://www.esrcheck.com/, call 415.898.0044, or email customerservice@esrcheck.com.

Sources:
http://www.acfe.com/
http://www.fraudconference.com/
http://www.fraudconference.com/23rd-Track_A.aspx
http://www.esrcheck.com/Newsletter/ESR-Speaks/Employment-Background-Checks-Stopping-Employee-Fraud-at-the-Point-of-Entry-130/
http://www.esrcheck.com/wordpress/2012/05/17/acfe-2012-report-to-the-nations-finds-fraud-costs-organizations-five-percent-of-revenues-each-year/

About Employment Screening Resources (ESR):

Employment Screening Resources (ESR) – ‘The Background Check AuthoritySM’– provides accurate and actionable information, empowering employers to make informed safe hiring decisions for the benefit for our clients, their employees, and the public. ESR literally wrote the book on background screening with “The Safe Hiring Manual” by Founder and CEO Lester Rosen. ESR is accredited by The National Association of Professional Background Screeners (NAPBS), a distinction held by a small percentage of screening firms. By choosing an accredited screening firm like ESR, employers know they have selected an agency that meets the highest industry standards. For more information about Employment Screening Resources (ESR), visit http://www.esrcheck.com/, call 415.898.0044 or 888.999.4474 (Toll Free), or email customerservice@esrcheck.com.

About ESR News:

The Employment Screening Resources (ESR) News blog – ESR News – provides employment screening information for employers, recruiters, and jobseekers on a variety of topics including credit reports, criminal records, data privacy, discrimination, E-Verify, jobs reports, legal updates, negligent hiring, workplace violence, and use of search engines and social network sites for background checks. For more information about ESR News or to send comments or questions, please email ESR News Editor Thomas Ahearn at tahearn@esrcheck.com.