Page 693 - ACFE Fraud Reports 2009_2020

Background Checks Run on the FIG. 25 Was a background check run on the perpetrator prior to hiring?
Perpetrators

Although most occupational fraud
perpetrators do not have a crimi-
nal history (see Figure 39 on page No 48%
48), it is still prudent for organiza-
tions to run background checks
(to the extent legally permissible)
during the hiring process to avoid
letting known fraudsters in through Did the background check
the front door. As noted in Figure reveal existing red flags?
25, however, only approximately Yes 52% No 87%
half of the victim organizations
in our study undertook this due Yes 13%
diligence step when hiring the
perpetrator. Interestingly, of the
52% of organizations that did
conduct a background check, 13%
of them uncovered a red flag in
the perpetrator’s background and FIG. 26 What types of background checks were run on the
proceeded with the decision to perpetrator prior to hiring?
hire them anyway.

When running background checks, Employment history 81%
organizations might choose to Criminal checks 75%
prioritize different aspects of an Reference checks 56%
individual’s background. Figure Education verification 50%
26 shows that, of the background
checks conducted by the victim Credit checks 38%
organizations in our study, 81% Drug screening 28%
included a check on the perpetra- Other 4%
tor’s employment history and 75%
included a check of the perpetra-
tor’s criminal background.

Victim Organizations Report to the Nations 37