Posts Tagged ‘Background Checks’

Employee and tenant financial background checks – some research

November 30th, 2011
Over the last 12 months we analysed searches carried out for adverse financial history, that is people who have CCJs, bankruptcy, IVA, or Debt Management Orders.  The objective of the analysis was to identify the average frequency of adverse data and also the likelihood of finding the data associated with the individual’s current or disclosed address.

 

Frequency of adverse background data. 

 

For tenant financial background checks we found that on average there was one instance of adverse data per 9 tenants checked. The highest value of outstanding CCJs found against an individual was £390,767, the lowest value found for a CCJ was just £55, and the average in CCJs outstanding (for a tenant with debt defaults) was £1,903.

 

For employee financial background checks we found on average a much lower incidence of adverse data with less than one instance per 30 employees checked.  The highest incidence was in the security sector (security guarding) where we found 1 in 14 employees with adverse financial history.  Conversely within the banking sector we found an average of 1 in 120 with adverse financial history.

 

Association of financial background data with the current (or disclosed) address provided

 

We found 47% of adverse financial data incidents to be associated with a previous or non-disclosed address.  The incidence is skewed by the tenant sector where individuals move more frequently and thus adverse data is more commonly not associated with the current address provided. This reinforces that need to carry out thorough background checks to ensure that the person provides a valid identity for their current address and also that any searches carried out do include a full linked address search.

 

If you would like to know more about the research please contact Credit Check Services, service@creidt-check-services.co.uk


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Background Checks – Andy Coulson

July 21st, 2011

Reported in the news on 21 July 2011 was the issue of whether the office at No 10 should have carried out background checks on Andy Coulson.  What would this have found and would it have made any difference to Andy Coulson’s appointment?

Background checks (or pre employment screening) are becoming increasingly widespread in their use for UK employers.  Such checks enable employers to investigate and verify a considerable level of background information including information not disclosed by the prospective employee.

If the employment is related to UK Government, as in the case of Andy Coulson, then higher levels of screening can be undertaken, these are: CTC, SC and DV (for more information on security vetting visit http://www.credit-check-services.co.uk/employment/security-vetting.html ).  Excluding CTC, SC and DV, the main areas covered by pre employment screening are:

  • Criminal background; this can identify information recorded by the courts or by the police ranging from criminal convictions through to arrests, cautions, fines, etc. 
  • Financial background; this can identify a range of data from civil court enforced debts to debt management orders, credit searches undertaken, account verifications, etc.
  • Qualifications and professional memberships; these can be verified for legitimacy.
  • Employment history; this can range from confirming periods of appointments and salaries through to performance related information.
  • Identity; verification, immigration status, and the right to work in UK.
  • Sanctions; to confirm if the individual is subject to any UK or national sanctions, typically HM Treasury and the USA OFAC databases.
  • Company legal appointments; identifying current and past appointments and any disqualifications (e.g. from appointment as company director or company secretary).

By carrying out higher levels of security screening (CTC, SC and DV) the investigation extends further to cover the financial situation of the applicant, information on family and relatives, and any information that could be considered to put the applicant in a position where they could be influenced to undermine their employment, for example being bribed to obtain information for a third party.

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Choosing the right company for financial background checks

January 17th, 2011

We thought it would be useful to remind anyone seeking a financial background check the importance of selecting a company that will carry out the necessary searches for adverse data such as CCJs, Court Decrees, Bankruptcy, Sequestration, or voluntary arrangements such as IVAs.

Today we had another customer who has started to use our services after switching from another supplier; they initially “tested” our services by asking us to check an individual who was suspected of having adverse financial history that their previous screening company could not find.  When Credit Check Services carried out the search we found a CCJ, it was not linked to the applicant’s current address provided but instead a previous address that they did not provide.

We strongly recommend that for any person being screened you obtain evidence of:

1 – The applicant’s identity, such as their passport to verify the person stood in front of you.

2 – Original copies (ideally 2 or more) of a bank statement, utility bill, council tax bill, or other official document that shows their name and address. 

Next, when obtaining a financial background check, if you do not feel confident that the applicant has provided evidence of address history then Credit Check Services will  carry out additional screening to help ensure any adverse financial data (should it exist) is found.

If you have any questions about carrying out financial background checks please call Credit Check Services on 01992 719 234.

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Obtaining employment by deception – offence under the Fraud Act 2006

January 10th, 2011

It is an offence to “obtain a pecuniary advantage by deception” under the Fraud Act 2006 (previously the Theft Act 1968).  This offence can also apply to someone obtaining employment by deception and there is plenty of case law established with prison sentences often being the result for those who have committed the offence.

Clearly the severity of the offence will have some bearing on whether a prosecution is pursued and ultimately the sentencing handed out by the courts.  As an example there have been cases where people have used false passports to obtain employment such as the case: Adebayo [2007] EWCA Crim 878, wrongfully using passports to obtain employment.  The sentence for Adebayo was two years imprisonment (reduced to 15 months on appeal).

It can also be a very serious offence where someone obtains employment by falsely stating qualifications or obtaining qualifications by deception in order to gain employment.  One example is a midwife working for Hampshire NHS who was sentenced to 32 weeks suspended for 12 months after using a falsely obtained qualification to gain employment.

As a responsible employer it is clearly necessary to carry out appropriate identity and background checks before providing employment, not only to ensure the right person has been hired but also to protect clients and members of the public from any subsequent issues arising from someone who obtains employment by deception.

If you would like advice about services for employment screening and background checks please contact Credit Check Services on 01992 719 234.

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