From i-Sight Investigation Software: Stop Fraud at the Door Before it Enters your Organization

Earlier this week,i-Sight Investigation Software posted an article based on an interview with me, Stop Fraud at the Door Before it Enters your Organization.

Making a bad hiring decision is sometimes only a minor inconvenience and a waste of time, but in many cases, it can leave you vulnerable to workplace fraud. One bad apple can wreak havoc in your organization and open you up to theft, legal trouble and even bankruptcy. In today’s litigious environment, it’s more important than ever to stop fraud at the door by conducting background checks on potential employees before making a job offer.

We interviewed Tracy Coenen, forensic accountant and fraud investigator, on the strategies for hiring people with high ethical standards as part of a company’s fraud prevention program.

“The more sensitive the job or the higher the position, the more checking we want to do,” advises Coenen. “The most dangerous types of fraud for a company’s bottom line are those committed by upper management because they are typically of a size that can put a company into bankruptcy or could lead to the loss of a very large customer.” The degree of background investigation to be carried out on a potential employee, therefore, should reflect the level of position in the company and the potential for damage.

Start with the Basics
The first checks Coenen advocates are the basics: “Confirm past employment, confirm education that they claim they have, actually call references,” she says. “I can’t tell you how many times I’ve heard of people putting references on their resume without checking with the person and the person actually has negative things to say.”

Read the rest of the article at i-Sight Investigation Software.

1 thought on “From i-Sight Investigation Software: Stop Fraud at the Door Before it Enters your Organization”

  1. Interesting article and blog. Also read your Mary Kay article from 2010 and left comment. Very enlightening.

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