Welcome to Summer!            

While some of you get to experience the joy of summer all year long, those of us in Ohio are sure thrilled the warm weather is finally here!  School's out, vacation plans are being finalized, sandals are getting pulled out of the closet and we're brushing up on our excuses to go to the ice-cream shop!

But summer is also when crime rates are up according to the FBI's Semiannual crime report.  More people are traveling, hotels are fuller, vacationers carry large amounts of cash, people are less cautious.  Perpetrators see these easy targets.  So while you're keeping your head up and staying aware for your own safety consider also how easy it would be for an employee of yours to commit and be convicted of a crime without you ever knowing.

In this issue we'll explore how this happens and what you can do to protect your employees and your business.  We'll also discuss the ever-growing concern of identity theft and how you can protect yourself and your employees.

Ninety-six percent of human resource managers conduct some form of background checks pre-hire according to the Society for Human Resource Management.  While it's exciting to see more and more employers recognizing the need to pre-screen applicants before hire, few understand the importance of periodic re-checks.

Consider the recent case of one firm who's bookkeeper turned embezzler.  She had been screened prior to hire and checked out just fine.  But after 10 years with the firm, she ran into a little money trouble due to the financial burden of her chronically ill child's medical expenses.  She discovered a loop-hole in the company's tracking of finances and used it to pilfer funds so she could pay off her medical bills.

Because this company had a policy to conduct biannual screenings of employees in sensitive positions, her routine check pointed to some serious credit problems.  Based on this information the company audited the employee's files which led to the discovery of her embezzling activities.

This is just one example of the potential power in performing re-checks.  Barry Nixon, Executive Director for the National Institute for Prevention of Workplace Violence says screening current employees should be considered  "a powerful weapon for fighting internal fraud, property and information theft, workplace violence, and even terrorism."

A local company recently found out how crowded jails are becoming, when a customer brought her concerns to the owner regarding the service rep behind the front desk.  She recognized him from the paper as a recently convicted assailant.  Upon further investigation, it was discovered that the employee had gotten into a physical altercation with a neighbor causing serious injury.  Due to the lack of room at the county jail, the employee was put on a work-release program and had to report to jail only for the weekends for the next several months.  The employer would never have known of the violent criminal behavior of his employee if the employee hadn't been recognized.  And what an unfortunate situation that it was a customer who did the recognizing; certainly not good for business.

This company now has a policy in place for periodic rescreening.  Mr. Nixon sites the following key points your policy needs to address:

1.  Identify positions to be screened.
2.  Set frequency
3.  Set search parameters
4.  Consent (if verbiage on initial release signed at time of hire indicates usage throughout employment, then there's no need to get a new signature.  If there is no such verbiage then it is advised to gain new consents from entire effected workforce.)
5.  Include contract staff
6.  Define company response to results
7.  Be mindful of EEOC and FCRA
8.  Industry requirements

Re-checking current applicants throughout their employment is a proven effective tool that employers need to embrace to better position their business' risk management posture.  Presenting the new policy to employees in a way that shows how it benefits them, rather than appearing as Big Brother, will deter any employee unrest and further help to minimize company risk.

Pamela Rodriguez is a Pre-Employment Coordinator for CIC. For comments or questions about this article you can contact her at 419-874-2201 ext. 16; prodriguez@corpintel.com

IDENTITY THEFT:
What You Don't Know CAN Hurt You
                   

The threat of identity theft is very real.  It's a growing concern across the country as thieves become more and more creative.  They only need a single piece of information and your very identity can be compromised.  Yeah, yeah, you've heard all this before and you're not too worried.  After all your bank account balance isn't exactly a thief's dream come true.  And you're careful not to leave your credit cards laying around or use your social security number unless you have to.  What more can you do?

Well, first you need to educate yourself on the types of identity theft out there.  Most people just think of the financial ruin ID theft can cause; but there are actually 5 types of identity theft:

1.  Driver's License Theft.  Wouldn't you be surprised to find out you had a DUI or your insurance rates just skyrocketed for speeding tickets you never received?

2.  Medical.  Just your name and social security number is needed to access your medical benefits.  And if the thief is lucky enough to land one of your insurance cards, they can now recieve medical treatment, testing, etc. on your tab.  Worse yet, the results may become part of your medical history which could be deadly in an emergency.

3.  Social Security Number.  Illegal workers will buy SSN's to give to employer's for I-9 purposes.  Once the income is reported to the IRS from the W-2, a red flag is now raised as this appears to be income unreported by you in your tax filings.  And if the thief files before you, they get the return, and your return looks to be a duplicate submission.

4.  Criminal.  It's not just in movies, it happens for real.  People will assume another's identity when arrested to keep their own name clear or in hopes of the police missing prior convictions.  When they don't show up to court, guess who's door the police are knocking on?

5.  Financial.  The one we all know about.  The thief sets up accounts in your name and spends, spends, spends.  It's reported to take up to 600 hours to repair your good name with all the paperwork, red-tape and leg-work required!  I don't have 15 weeks of vacation time, do you?

Theives use all kinds of creative ways to get the information they need from you.  They go through your trash, known as dumpster diving.  They re-direct your mail to access credit offers and sign up in your name.  They steal checks from your mailbox and use chemical washes to erase certain information like the payee and the dollar amount.  They shoulder surf to watch as you punch in your pin number or listen to cell conversations and through baby monitors.  They'll send you official looking emails from your bank or other trusted source to gain valuable pin and account numbers.  This is called Phishing.  A similar tactic, pharming, will prey on people whose firewalls and SSL technology isn't up to snuff.  They can land on a webpage that isn't the legitimate site of the owner it's advertising. Skimming can be easy for waiters who walk away with your credit card and swipe it through a reprogrammed credit card reader to steal the personal information on the magnetic strip.

So, bottom line is:  everyone is at risk.  Protect yourself by shredding all credit card offers.  Pay bills online through a secure site when possible.  If sending checks by mail, drop them off at the post office or place them in a locked mailbox.  Use gel pens on checks - chemical washes are ineffective on this type of ink. Never take your trash out the night before; take it to the curb as close to pick-up time as possible.  Pay the waiter with cash.  Never respond to an email from your bank or other trusted source.  Leave the email and go to the website directly.  Use phone numbers on your bills for inquiries or payments, not ones sent to you in emails.

Even with diligence you may still be the victim of indentity theft.  If you believe you are, immediately contact the police and file a report.  Next cancel all credit cards and notify all financial institutions.  Call all three credit bureaus and request a fraud alert be put on your account.  File a complaint with the Federal Trade Commission.

Go to www.ftc.gov/idtheft for more information and useful tips.

Download your free "FTC Facts for Business" here to access great guidance for protecting your business.

http://www.ftc.gov/bcp/edu/pubs/business/idtheft/bus59.pdf

Pam Rodriguez leads the pre-employment screening division team for CIC.  She understands how many roles you play within your organization and works diligently to know and understand the laws of performing and using background check information so you don't have to.  She is your premier resource for all things screening and truly enjoys helping our clients. 

Through her membership and participation in the National Association of Professional Background Screeners (NAPBS), she is apprised of the latest industry information, changing laws, and trends in Human Resources.  Pam’s certification in “Safe Hiring” through a nationally recognized training program, gives her an edge in helping HR personnel in companies large and small, local and international, to develop, implement and maintain an effective screening program.  

Pam loves writing, being creative and meeting clients.  You'll see her speaking at industry events, and attending trade shows, HR lunches and roundtables.  But since most of her day is spent reviewing reports, training clients, talking to researchers, studying, and tailoring services to each client's needs, we don't let her out much!  So when you see her, be sure to say 'hi' and introduce yourself - she'll love it!

Tips & Tidbits

Use this Application Checklist to quickly see possible red flags on a candidates application:
 
1.  Did the applicant sign the application?
    
2.  Was the criminal question left blank?

3.  Are there a lot of mistakes and changes?

4.  Does the applicant fail to explain gaps in employment history?

5.  Do the reasons for leaving past jobs make sense?

6.  Does your applicant have trouble remembering the name of a past supervisor?

Answering "yes" to any of these questions can signal trouble.  The application is only valid if it is signed.  Some applicants purposely leave their application unsigned so that they cannot later be accused of falsification.  Leaving the criminal question blank is an obvious red flag, but not so obvious is when an applicant self-reports criminal history.  Make sure to thoroughly check their statements out.  Their version of the incident may be very different from the court's version.  Lots of mistakes and changes on an application as well as the inability to recall past employment information can indicate a falsified application.  Never accept only a resume as applicants can produce a meticulously created "story line" whether accurate or not.  Require they also fill out an application which will immediately show discrepancies from one form to the other.  Your best defense against incomplete application information is to review the completeness of the form before the applicant leaves.  Any honest oversights can then be corrected immediately.

-Lower employee morale (68%)
-Decreased employee productivity (66%)
-Lost customers/market share (54%)
-Higher training costs (51%)
-Higher recruitment costs (44%)
-Higher severance costs (40%)