Do You Have a Risk Management Strategy for Identity Fraud?

Do You Have a Risk Management Strategy for Identity Fraud?Employment identity theft may seem like a victimless crime. However, when a potential employee or client uses someone else’s information to obtain a job,   they have unauthorized access to another person’s records.  Typically thieves gain access to unauthorized information using lost/stolen credit cards, computer spyware, dumpster-diving, or by hacking employee records maintained by an organization or company. More than 10 million individuals are affected by identity theft every year. Due to this, many staffing agencies need to have a Risk Management plan should they come across a potential hire using fraudulent information.

According to an article in U.S. Small Business Administration, there are ways to prevent and detect identity theft. Here are a few:

  • Background checks are a vital tool available for staffing agencies. Employers have the right to learn about their potential hire since they will have a legal relationship with them. Thoroughly screening your candidate will ensure that your clients meet the full requirements of each of assignment.
  • Detecting fraudulent information can be difficult. In addition to a thorough background check, always ask for a minimum of two references when taking on a potential hire. Seeking both professional and personal references will allow your agency to verify their background is accurate.
  • Create a step-by-step plan that your staffing agency can utilize to assess potential hires. Adopting an anti-fraud policy statement is one way of communicating a strong fraud prevention message to your staff. Ensure that your statement provides clear guidelines for identifying and dealing with fraud.

Cyber crime threats are common in all businesses, including your staffing firm. At World Wide Speciality Programs, we are committed to providing you with coverage to protect you from virus corruption, extortion threats, unauthorized access, firewall and network security attacks under a policy called Cyber Liability. We understand that your business can be exposed to data breaches, identity fraud and more. For more information, call us today at 877.256.0468.