As the story below demonstrates, financial firms run the risk putting their organisations in financial peril by not conducting basic criminal searches. As a minimum media searches should always be part of a proper screening process, since they will unveil any high profile case that reached the local or national press.
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TWO Zimbabwean insurance workers based in Sheffield who plundered customers' personal details then used them to scam hundreds of thousands of pounds from policy holders have been jailed for five and-a-half years.
Failed asylum seekers Edward Dzingai, 27, and Gregory Maumbe, 26, both worked at Norwich Union's Pomona House in Pear Street, Ecclesall Road.
They used their positions to gain access to the personal insurance policy details of 28 "gone away" customers - clients for whom the company had no current address - often targeting elderly or vulnerable people.
Ian West, prosecuting, told Sheffield Crown Court: "Dzingai and Maumbe's positions in the organisation gave them access to the computer databases - the names and details of the policy holders and copies of the signatures of these 'gone away' cases.
"They would use this information to manufacture fraudulent surrender letters and the funds would then be transferred to the bank accounts detailed on these letters."
They targeted 28 policies yielding more than £655,395 between September 2005 and October 2007.
They also tried to steal a further £144,000 but failed.
When police raided their homes and examined their computers they found details of another 53 policies worth £1.5 million.
Dzingai, of Windy House Lane, Manor, and Maumbe, of Fretson Road, Manor, pleaded guilty to one count of conspiring to obtain money transfers by deception.
They claimed they were forced into the scam by men who threatened to hurt their families in Sheffield and Zimbabwe.
Maumbe admitted receiving up to £40,000 for his part in the operation, while Dzingai said he received between £1,500 and £2,000 for five different transactions.
Sentencing them to five years in prison for the deception case, plus an extra six months for possessing fake passports, His Honour Judge Patrick Robertshaw said:"You were actually possessed of freewill and made the choice to play a crucial, critical role in this fraud over a significant period of time.
"The breach of trust involved was serious, flagrant, calculated, deliberate and protracted."
The prosecution claim Allan Manhire, 26, from Liverpool, arranged the bank accounts through which the money was laundered. He faces trial at a later date.
Several other defendants, some of them UK nationals, have admitted opening bank accounts into which the money was laundered.
Friday, 27 February 2009
Facebook posting can get you fired
As reported in the Times today an employee was fired as a result of a posting on Facebook. This raises interesting ethical and legal questions both in terms of checking social networking sites for employment purposes as well as in controlling what employees can say with impunity about their employer in what is essentially a form of media.
At Powerchex we do not formally check social networking sites for pre-employment screening purposes, however, we do recommend that recruiters take a look at what the applicant may have posted on Facebook and other similar sites.
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A 16-year-old girl from Essex was fired after she described her office job as "boring" on her Facebook page.
Kimberley Swann, 16, of Clacton, had been working at Ivell Marketing & Logistics, in Clacton, for three weeks before being fired on Monday.
"I think they've stooped quite low," she said.
The firm's Steve Ivell said of the decision: "Her display of disrespect and dissatisfaction undermined the relationship and made it untenable."
Miss Swann said: "You shouldn't really be hassled outside work. It was only a throw-away comment.
She says Clacton is boring but we're not going to throw her out of the house for it
Janette Swann
"I came home from work one day, sat on the computer and said something about my job being boring."
Details were passed to her employers after she allowed colleagues access to her page, Miss Swann said, adding that she was not given the chance to explain.
Her mother, Janette, 41, said: "I think she's been treated totally unfairly. She didn't mention the company's name.
"This is a 16-year-old child we're talking about. She says Clacton is boring but we're not going to throw her out of the house for it."
Mr Ivell said: "Ivell Marketing is a small, close-knit family company and it is very important that all the staff work together in harmony.
"Had Miss Swann put up a poster on the staff notice board making the same comments and invited other staff to read it there would have been the same result."
TUC general secretary Brendan Barber said employers needed "thicker skins" in relation to social networking websites.
He said: "Most employers wouldn't dream of following their staff down the pub to see if they were sounding off about work to their friends."
At Powerchex we do not formally check social networking sites for pre-employment screening purposes, however, we do recommend that recruiters take a look at what the applicant may have posted on Facebook and other similar sites.
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A 16-year-old girl from Essex was fired after she described her office job as "boring" on her Facebook page.
Kimberley Swann, 16, of Clacton, had been working at Ivell Marketing & Logistics, in Clacton, for three weeks before being fired on Monday.
"I think they've stooped quite low," she said.
The firm's Steve Ivell said of the decision: "Her display of disrespect and dissatisfaction undermined the relationship and made it untenable."
Miss Swann said: "You shouldn't really be hassled outside work. It was only a throw-away comment.
She says Clacton is boring but we're not going to throw her out of the house for it
Janette Swann
"I came home from work one day, sat on the computer and said something about my job being boring."
Details were passed to her employers after she allowed colleagues access to her page, Miss Swann said, adding that she was not given the chance to explain.
Her mother, Janette, 41, said: "I think she's been treated totally unfairly. She didn't mention the company's name.
"This is a 16-year-old child we're talking about. She says Clacton is boring but we're not going to throw her out of the house for it."
Mr Ivell said: "Ivell Marketing is a small, close-knit family company and it is very important that all the staff work together in harmony.
"Had Miss Swann put up a poster on the staff notice board making the same comments and invited other staff to read it there would have been the same result."
TUC general secretary Brendan Barber said employers needed "thicker skins" in relation to social networking websites.
He said: "Most employers wouldn't dream of following their staff down the pub to see if they were sounding off about work to their friends."
Departing workers often steal data from ex-employers: study
A study by Ponemon Institute reveals that more than half of departing employees steal data from their ex-employers. Other than the obvious implications raised concerning the data security policy or lack there of, at the site of the ex-employer, one needs to consider the fact that these employees must be quite confident that their ex-employer will not disclose this sort of information to the new employer. Given the percentage of dishonestly involved, new employers are well advised to probe into these sort of issues during the referencing process.
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Many ex-employees in the U.S. are walking off with companies' sensitive and confidential data when they leave their jobs, a new study has found.
And of those, most have either used or plan to use the data for their next job with another company.
"Not only is this putting customer and other confidential information at risk for a data breach, but it could affect companies' competitiveness and future revenues," said the study released Monday by the Ponemon Institute, a Michigan-based independent think-tank that researches information and privacy management practices in business and government.
Among 945 survey participants who had been laid off, fired, or changed jobs in the past year, 59 per cent admitted to taking company data with them, said the study, which as sponsored by Symantec Corp., the internet security company that makes Norton Antivirus.
Of those:
65 per cent took email lists.
45 per cent took non-financial business information.
39 per cent took customer information, including contact lists.
35 per cent took employee records.
16 per cent took financial information.
About 61 per cent took the data as paper documents or hard files, 53 per cent burned the information onto a CD or DVD, and 42 per cent downloaded it onto a USB memory stick.
When asked if their former company permitted them to keep the information, 79 per cent admitted that the company did not.
The study's results suggested that the stolen information was valuable to competitors — 67 per cent of the ex-employees said they used confidential, sensitive or proprietary information from their ex-employer to help secure a new job, and 68 per cent said they planned to make use of the data.
Companies share blame
The study's author suggested that companies aren't doing enough to stop the thefts:
Only 15 per cent of companies in the survey conducted a review or audit of the paper and electronic documents taken by employees.
92 per cent of employees took CDs, DVDs, USB memory sticks and PDAs with them when they left, and 89 per cent reported that the company did not do an electronic scan of the devices.
24 per cent of employees were able to access their former employer's computer system or network after their departure and 44 per cent continued to receive email on the company's account.
"Even if layoffs are not imminent, companies need to be more aware of who has access to sensitive business information," said Larry Ponemon, chairman and founder of the Ponemon Institute, in a statement. "Our research suggests that a great deal of data loss is preventable through the use of clear policies, better communication with employees, and adequate controls on data access."
Dissatisfied employees more likely to steal
The study found that only 13 per cent of respondents who had a favourable view of their former employer kept some of the company's information, while more than 61 per cent with an unfavourable view took the data.
When employees who took the data were asked why it was acceptable to do so:
54 per cent said other employees kept the information when they left the company.
50 per cent said no one checked their belongings when they left.
11 per cent said their former supervisor said it was permissible to keep the information.
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Many ex-employees in the U.S. are walking off with companies' sensitive and confidential data when they leave their jobs, a new study has found.
And of those, most have either used or plan to use the data for their next job with another company.
"Not only is this putting customer and other confidential information at risk for a data breach, but it could affect companies' competitiveness and future revenues," said the study released Monday by the Ponemon Institute, a Michigan-based independent think-tank that researches information and privacy management practices in business and government.
Among 945 survey participants who had been laid off, fired, or changed jobs in the past year, 59 per cent admitted to taking company data with them, said the study, which as sponsored by Symantec Corp., the internet security company that makes Norton Antivirus.
Of those:
65 per cent took email lists.
45 per cent took non-financial business information.
39 per cent took customer information, including contact lists.
35 per cent took employee records.
16 per cent took financial information.
About 61 per cent took the data as paper documents or hard files, 53 per cent burned the information onto a CD or DVD, and 42 per cent downloaded it onto a USB memory stick.
When asked if their former company permitted them to keep the information, 79 per cent admitted that the company did not.
The study's results suggested that the stolen information was valuable to competitors — 67 per cent of the ex-employees said they used confidential, sensitive or proprietary information from their ex-employer to help secure a new job, and 68 per cent said they planned to make use of the data.
Companies share blame
The study's author suggested that companies aren't doing enough to stop the thefts:
Only 15 per cent of companies in the survey conducted a review or audit of the paper and electronic documents taken by employees.
92 per cent of employees took CDs, DVDs, USB memory sticks and PDAs with them when they left, and 89 per cent reported that the company did not do an electronic scan of the devices.
24 per cent of employees were able to access their former employer's computer system or network after their departure and 44 per cent continued to receive email on the company's account.
"Even if layoffs are not imminent, companies need to be more aware of who has access to sensitive business information," said Larry Ponemon, chairman and founder of the Ponemon Institute, in a statement. "Our research suggests that a great deal of data loss is preventable through the use of clear policies, better communication with employees, and adequate controls on data access."
Dissatisfied employees more likely to steal
The study found that only 13 per cent of respondents who had a favourable view of their former employer kept some of the company's information, while more than 61 per cent with an unfavourable view took the data.
When employees who took the data were asked why it was acceptable to do so:
54 per cent said other employees kept the information when they left the company.
50 per cent said no one checked their belongings when they left.
11 per cent said their former supervisor said it was permissible to keep the information.
One if four have lied at interview
Recruiter magazine reveals in their weekly update a startling statistic:
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Around a quarter of British workers have lied at interview, according to a Monster poll.
According to the poll, 28% of workers admitted lying in a job interview, with a further 14% stretching the truth in the hope of appearing better qualified for a job. However, most people have remained honest, with 58% of those surveyed claiming that they have never lied or been economical with the truth to secure a job.
Julian Acquari, managing director at Monster UK and Ireland, says: “Today’s tough job market understandably heightens the temptation for jobseekers to lie in interviews. Competition is fierce and we are aware of the increased need to stand out.
“However, there is a fine line between embellishing facts about yourself and telling lies. It is never advisable to bend the truth under any circumstances as it is likely to catch up with you. At the end of the day honesty is always the best policy.”
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Around a quarter of British workers have lied at interview, according to a Monster poll.
According to the poll, 28% of workers admitted lying in a job interview, with a further 14% stretching the truth in the hope of appearing better qualified for a job. However, most people have remained honest, with 58% of those surveyed claiming that they have never lied or been economical with the truth to secure a job.
Julian Acquari, managing director at Monster UK and Ireland, says: “Today’s tough job market understandably heightens the temptation for jobseekers to lie in interviews. Competition is fierce and we are aware of the increased need to stand out.
“However, there is a fine line between embellishing facts about yourself and telling lies. It is never advisable to bend the truth under any circumstances as it is likely to catch up with you. At the end of the day honesty is always the best policy.”
Increase in IT contractors' offers in Financial Services
Powerchex's own research of the number of offers make in the month of January as they compare to the month of December 2008, show a significant increase in offers primarily in investment banking. IT contractors' offers have also increased substantially. Contractor UK a leading industry website reports our findings as follows:
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Recruitment of IT contractors by British financers has beaten all stated expectations, halting a consecutive monthly decline in the number of IT freelancers that they hire.Financial staff screening firm Powerchex said IT contractor job offers in January rose by almost 30% compared with December, when they went into the red by 75%.Yet the number of IT contractors the firm screened last month was down 68% on the same period in 2008, suggesting City IT hires are “definitely not back to normal.” Reflecting on January’s upturn, Powerchex’s founder Alexandra Kelly told CUK it may be that financers think that they shed too many IT contractors in December. Then, the number of IT contractor job offers was “dismal, so much so that investment bankers, stockbrokers, insurers and hedge fund managers were all likelier recruits.Now, however, some hiring freezes have melted, projects are being looked at afresh and related staff are being seen as vital for “competitive advantage,” Ms Kelly said. Financial services companies taking this approach with IT contractors in January were mainly serving the investment banking and insurance sectors.“There do seem to be signs of some increased hiring for contractors in the financial services space,” testified Paul Elworthy, financial IT recruitment director at Hudson.“But I would loathe to refer to it as a recovery quite yet. January is usually the beginning of the new budgets so there is a little more freedom to hire so the change from December to January can be quite a positive one. “I would put it down to a seasonal trend but that said, we are seeing more positivity from a number of our clients in their hiring, particularly for IT contractors”.Hudson said 70% of candidates it placed last month were freelance, with demand strongest for Subject Matter Experts in specific technologies, product lines or disciplines.
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Recruitment of IT contractors by British financers has beaten all stated expectations, halting a consecutive monthly decline in the number of IT freelancers that they hire.Financial staff screening firm Powerchex said IT contractor job offers in January rose by almost 30% compared with December, when they went into the red by 75%.Yet the number of IT contractors the firm screened last month was down 68% on the same period in 2008, suggesting City IT hires are “definitely not back to normal.” Reflecting on January’s upturn, Powerchex’s founder Alexandra Kelly told CUK it may be that financers think that they shed too many IT contractors in December. Then, the number of IT contractor job offers was “dismal, so much so that investment bankers, stockbrokers, insurers and hedge fund managers were all likelier recruits.Now, however, some hiring freezes have melted, projects are being looked at afresh and related staff are being seen as vital for “competitive advantage,” Ms Kelly said. Financial services companies taking this approach with IT contractors in January were mainly serving the investment banking and insurance sectors.“There do seem to be signs of some increased hiring for contractors in the financial services space,” testified Paul Elworthy, financial IT recruitment director at Hudson.“But I would loathe to refer to it as a recovery quite yet. January is usually the beginning of the new budgets so there is a little more freedom to hire so the change from December to January can be quite a positive one. “I would put it down to a seasonal trend but that said, we are seeing more positivity from a number of our clients in their hiring, particularly for IT contractors”.Hudson said 70% of candidates it placed last month were freelance, with demand strongest for Subject Matter Experts in specific technologies, product lines or disciplines.
Monday, 9 February 2009
Regulators within EU countries
This is a link to all the financial regulators in the European Union. These records are kept at the country level and regulation can still vary even within the EU. Keeping in touch with local regulators and incorporating their directives has been at the cornerstone of our screening process.
http://www.jmlsg.org.uk/bba/jsp/polopoly.jsp?d=773&a=9912
On the JMLSG website, there are other resources outlining the ML regulations and how they can affect the requirements of firms in terms of screening current and future employees.
http://www.jmlsg.org.uk/bba/jsp/polopoly.jsp?d=773&a=9912
On the JMLSG website, there are other resources outlining the ML regulations and how they can affect the requirements of firms in terms of screening current and future employees.
A flood of fake CVs for IT jobs
According to The Times of India fake CVs and qualifications are flooding the Indian IT market. This trend represents a real danger to companies outsourcing IT development to India on more than one front. There is the obvious risk that the person may have a false or stolen identity and could be working on behalf of organised crime. A further risk is that the employee is not qualified for the role they will be doing and can cause serious damage to the IT infrastracture of the client. Companies are advised to not let their guards down when outsourcing any part of their work whether it is in the UK or internationally. Auditing the screening arrangements of a supplier is basic risk mitigation.
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BANGALORE: Not content with faking passports, visas and CVs, expert forgers are also meeting the needs of dubious IT aspirants. moolah by selling fake access and identity cards, appointment letters, pay revision letters, bank statements
Agents across the country are raking in the , and even relieving letters of companies and banks. A fortnight ago, Wipro Technologies interviewed a candidate who walked into its MG Road office with a whole bunch of fake documents, including an interview call letter from Wipro. Its HR staff smelt a rat and on interrogation, they uncovered the true extent of the candidate’s duplicity. Wipro let the Andhra Pradesh-based fraudster go after obtaining a written apology, in which he wrote, “I went to a shopping mall in Bangalore. There I met a job consultant. I paid him Rs 3,000 and in turn he got me fake certificates, ID card, offer letter, letter of salary hike, pay slips and bank statements. With these, I applied for a techie’s job in Wipro." An e-mail interview call letter received by another candidate had the following details: "Dear candidate, your resume is found on TimesJobs.com and you have been selected for the job you sought for. Your interview will be held on February 10 at Wipro’s Noida office. You have to come with photo copies of all required documents. First you have to deposit Rs 5,300 in any branch of a bank (name withheld) in the account number XXX in favour of Sr HRD. This money along with your travel allowance and DA will be refunded by the company on the day of the interview." Wipro has taken a serious view of the matter and even shared some cases with its peers. “It’s a serious menace growing in alarming proportions. We have given special training to our talent acquisition team to be extremely cautious of such questionable elements trying to creep into the system. We are talking to ten of our peers so that together we can find ways to fight the menace. The idea is to create a pool of fake CVs and share them between us so that we are insulated. This will also create awareness in the market," said Pradeep Bahirwani, vice-president, talent acquisition
, Wipro Technologies. According to Bahirwani, candidates from secondary cities easily fall prey to these "agents". According to a recent KPMG report, one of every four CVs in the Indian tech space is fake. Also, six of every ten fake CVs have a direct or indirect link to Hyderabad.
The Times of India
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BANGALORE: Not content with faking passports, visas and CVs, expert forgers are also meeting the needs of dubious IT aspirants. moolah by selling fake access and identity cards, appointment letters, pay revision letters, bank statements
Agents across the country are raking in the , and even relieving letters of companies and banks. A fortnight ago, Wipro Technologies interviewed a candidate who walked into its MG Road office with a whole bunch of fake documents, including an interview call letter from Wipro. Its HR staff smelt a rat and on interrogation, they uncovered the true extent of the candidate’s duplicity. Wipro let the Andhra Pradesh-based fraudster go after obtaining a written apology, in which he wrote, “I went to a shopping mall in Bangalore. There I met a job consultant. I paid him Rs 3,000 and in turn he got me fake certificates, ID card, offer letter, letter of salary hike, pay slips and bank statements. With these, I applied for a techie’s job in Wipro." An e-mail interview call letter received by another candidate had the following details: "Dear candidate, your resume is found on TimesJobs.com and you have been selected for the job you sought for. Your interview will be held on February 10 at Wipro’s Noida office. You have to come with photo copies of all required documents. First you have to deposit Rs 5,300 in any branch of a bank (name withheld) in the account number XXX in favour of Sr HRD. This money along with your travel allowance and DA will be refunded by the company on the day of the interview." Wipro has taken a serious view of the matter and even shared some cases with its peers. “It’s a serious menace growing in alarming proportions. We have given special training to our talent acquisition team to be extremely cautious of such questionable elements trying to creep into the system. We are talking to ten of our peers so that together we can find ways to fight the menace. The idea is to create a pool of fake CVs and share them between us so that we are insulated. This will also create awareness in the market," said Pradeep Bahirwani, vice-president, talent acquisition
, Wipro Technologies. According to Bahirwani, candidates from secondary cities easily fall prey to these "agents". According to a recent KPMG report, one of every four CVs in the Indian tech space is fake. Also, six of every ten fake CVs have a direct or indirect link to Hyderabad.
The Times of India
Monday, 2 February 2009
Companies should be very vigilant in screening their employees as fraud nears record levels
As the global economic downturn takes hold it is very likely that more fraud will come to light. Tightening economic conditions are likely to both reveal existing frauds, or act as an determinant for new frauds. Companies are urged to screen new employees carefully and not neglect to periodically re-screen employees in high risk functions.
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The BBC On Line reports:
While fraud by professional gangs remained pretty constant, fraud by individuals increased dramatically.
Individual cases of fraud accounted for around £300m, a three-fold increase on 2007.
Professional gangs accounted for £806m.
The financial services sector suffered from £388m of alleged fraud - a 10-fold increase on 2007. However, £220m of this total was accounted for by an alleged £220m attempt to hack into Sumitomo Matsui Banking Corporation's systems.
Companies were badly hit, with a five-fold increase in fraud, up from £24m worth of cases in 2007 to £125m last year.
"Internal frauds are becoming more prevalent and should set alarm bells ringing within organisations. In difficult times, they could even become the tipping point between the survival and demise of an organisation," said Mr Patel.
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The BBC On Line reports:
While fraud by professional gangs remained pretty constant, fraud by individuals increased dramatically.
Individual cases of fraud accounted for around £300m, a three-fold increase on 2007.
Professional gangs accounted for £806m.
The financial services sector suffered from £388m of alleged fraud - a 10-fold increase on 2007. However, £220m of this total was accounted for by an alleged £220m attempt to hack into Sumitomo Matsui Banking Corporation's systems.
Companies were badly hit, with a five-fold increase in fraud, up from £24m worth of cases in 2007 to £125m last year.
"Internal frauds are becoming more prevalent and should set alarm bells ringing within organisations. In difficult times, they could even become the tipping point between the survival and demise of an organisation," said Mr Patel.
India tightens pre-employment screening practices after Mumbai attacks
Many stories of lax pre-employment screening have be reported out of India. The attacks in Mumbai are finally making companies and authorities, look close at their vetting processes as reported in the Hindu Business Line below:
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Shaken by the magnitude of the terror that struck the two hotels in Mumbai, companies across industries would step up employee verification procedures, especially for contract employees and those employed in ‘sensitive positions’ such as security staff, hospitality and airlines frontline staff and telecom employees.
Mr Rajesh A R, Vice-President of staffing solutions company TeamLease Services says that for ‘sensitive positions,’ there is likely to be additional verifications like checking permanent addresses, apart from routine education and previous employment checking.
“Before the Mumbai incident, companies did not feel the need to spend the money on additional checks such as these, especially for employees whose salaries were about Rs 4,000-Rs 5,000/ month.” Companies will therefore prefer to employ people who come with third party verification. “Candidates who have got themselves verified would stand a better chance of being employed,” he feels.
Very soon, he believes, this would also become mandatory for temp (contract) employees in the hospitality, airline, BFSI, retail and telecom sectors.
Col Vijay Reddy, Director of Footprints, a background screening firm, says that he has been recommending permanent residence verification of employees to all his clients, especially for contract staff in security agencies and the hospitality sectors.
“Now, they realise that people from the neighbouring region can easily pass off for Indians unless verified for permanent residency and that also by an independent agency.”Police verification
The hospitality sector, meanwhile, says the industry has been going through the usual procedure of identity checks. According to Ms Harinder Singh, General Manager, The Lalit Ashok, Bangalore, the hotel does go through the proper process of verifying for some positions. “We make sure there is police verification and identity checks too,” she says.
Mr Subrata Majumder, General Manager, The Park, Bangalore, says, “We make sure we demand police verification for various positions. We check documents, but how genuine they are is definitely a concern.”
In the meantime Aislinn Simpson of the Telegraph reports...
Indian call centre manager arrested over British insurance scam
The manager of an Indian call centre handling the insurance details of hundreds of British customers has been arrested over fears of a major scam, according to police.
According to the police, Edward Burns, an Indian citizen, was working in the insurance claims division of Delhi-based EXL, which handled British insurance firm Aviva, the parent company of Norwich Union.
The 30-year-old is feared to have been using identities of British insurance customers to make false claims for up to two years.
He has admitted siphoning off nearly £57,000 to bank accounts in Britain but this is only in relation to 12 customers and police believe the scam could be much larger.
They also fear that other British firms who hold accounts with EXL may have been affected.
The local head of police, Ashok Kumar Chaturvedi, said police also plan to interrogate three people thought to be accomplices of Mr Burns in Britain.
He said: "As this has been going on for two years, we suspect a much bigger financial fraud to British customers."
It is not yet clear how Mr Burns is alleged to have perpetrated the fraud, but it is understood that police believe his accomplices in Britain would collect the insurance payout and take a cut out to him in India.
EXL Service has played down the scale of the alleged scam, saying it was a "small-scale isolated incident".
A spokesman for Aviva said: "We can confirm that, through our own control mechanisms, we have discovered an isolated case of fraud by an employee of one of our supplier partners. We are currently working with the local authorities to take the appropriate action. At no time was any policy holders' money at risk."
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Shaken by the magnitude of the terror that struck the two hotels in Mumbai, companies across industries would step up employee verification procedures, especially for contract employees and those employed in ‘sensitive positions’ such as security staff, hospitality and airlines frontline staff and telecom employees.
Mr Rajesh A R, Vice-President of staffing solutions company TeamLease Services says that for ‘sensitive positions,’ there is likely to be additional verifications like checking permanent addresses, apart from routine education and previous employment checking.
“Before the Mumbai incident, companies did not feel the need to spend the money on additional checks such as these, especially for employees whose salaries were about Rs 4,000-Rs 5,000/ month.” Companies will therefore prefer to employ people who come with third party verification. “Candidates who have got themselves verified would stand a better chance of being employed,” he feels.
Very soon, he believes, this would also become mandatory for temp (contract) employees in the hospitality, airline, BFSI, retail and telecom sectors.
Col Vijay Reddy, Director of Footprints, a background screening firm, says that he has been recommending permanent residence verification of employees to all his clients, especially for contract staff in security agencies and the hospitality sectors.
“Now, they realise that people from the neighbouring region can easily pass off for Indians unless verified for permanent residency and that also by an independent agency.”Police verification
The hospitality sector, meanwhile, says the industry has been going through the usual procedure of identity checks. According to Ms Harinder Singh, General Manager, The Lalit Ashok, Bangalore, the hotel does go through the proper process of verifying for some positions. “We make sure there is police verification and identity checks too,” she says.
Mr Subrata Majumder, General Manager, The Park, Bangalore, says, “We make sure we demand police verification for various positions. We check documents, but how genuine they are is definitely a concern.”
In the meantime Aislinn Simpson of the Telegraph reports...
Indian call centre manager arrested over British insurance scam
The manager of an Indian call centre handling the insurance details of hundreds of British customers has been arrested over fears of a major scam, according to police.
According to the police, Edward Burns, an Indian citizen, was working in the insurance claims division of Delhi-based EXL, which handled British insurance firm Aviva, the parent company of Norwich Union.
The 30-year-old is feared to have been using identities of British insurance customers to make false claims for up to two years.
He has admitted siphoning off nearly £57,000 to bank accounts in Britain but this is only in relation to 12 customers and police believe the scam could be much larger.
They also fear that other British firms who hold accounts with EXL may have been affected.
The local head of police, Ashok Kumar Chaturvedi, said police also plan to interrogate three people thought to be accomplices of Mr Burns in Britain.
He said: "As this has been going on for two years, we suspect a much bigger financial fraud to British customers."
It is not yet clear how Mr Burns is alleged to have perpetrated the fraud, but it is understood that police believe his accomplices in Britain would collect the insurance payout and take a cut out to him in India.
EXL Service has played down the scale of the alleged scam, saying it was a "small-scale isolated incident".
A spokesman for Aviva said: "We can confirm that, through our own control mechanisms, we have discovered an isolated case of fraud by an employee of one of our supplier partners. We are currently working with the local authorities to take the appropriate action. At no time was any policy holders' money at risk."
A tale of two references...
This week brought two interesting stories about referencing. Two companies, one in the US, the other in Australia, reacted quite differently to adverse referencing. What would you do?
First, Microsemi as reported in the FT by Richard Waters
In spite of the new spirit of puritanism sweeping through US boardrooms, some chief executives are still being forgiven an occasional lapse into dishonesty.
That was the stance taken this week by directors of Microsemi, a small Californian technology company, after it was revealed that the company's chief executive had been less than forthright about his educational qualifications.
Rather than showing Jim Peterson the door - the fate that has often befallen other chief executives who have lied about their credentials - Microsemi's directors have decided that he should stay on, although with financial penalties that could cost him $1m.
News of the board's leniency drew a mixed reaction. "It's one data point about a person, about their willingness to falsify a record in a tight spot," said Wayne Norman, professor of ethics and philosophy at Duke University.
He added, though, that the company's directors were right to take a broader view of Mr Peterson's conduct over a number of years, and to consider the impact on shareholders of making a leadership change.
Justifying the decision not to jettison the chief executive after his nine years at the helm, Dennis Leibel, chairman, said: "The board's mission is to protect shareholder interests by balancing the results of the independent inquiry against the great value and strategic vision that Jim Peterson has created at Microsemi." He credited the chief executive with building a "highly successful and profitable enterprise".
Complicating the case was the fact that the disclosure about Mr Peterson's false credentials was made by Barry Minkow, a short-seller who has a track record of profiting by uncovering such irregularities.
The work of short-sellers in ferreting out discrepancies like this probably helped in the longer term to keep chief executives honest, said Mr Norman.
In a regulatory filing, Microsemi said that an investigation by law firm Munger Tolles & Olson had concluded that Mr Peterson did not have a bachelor's degree and MBA from Brigham Young University, as he had claimed.
Instead, he had been awarded an associate's degree by a college that later became part of Brigham Young, and had also earned "substantial credits" towards a bachelor's degree at the university.
Microsemi said it would impose financial penalties on Mr Peterson, while also introducing a heightened level of scrutiny that would involve deeper background checks into its senior executives.
While adding that the company "takes this matter very seriously", Mr Leibel stopped short of criticising the chief executive's dishonesty directly and said the company's directors "are not commenting on his beliefs, understandings or state of mind".
Meanwhile, in Australia...
A COMPANY has won more than $160,000 compensation from a recruitment firm that recommended a manager who was a former bankrupt and fraud.
The firm failed to conduct adequate background checks on the sales manager, who subsequently defrauded the company of $120,000.
Sydney water treatment equipment supplier Wedeco hired Driver Recruitment, trading as Authorised Solutions, to find sales manager for Southeast Asia, reports The Australian.
According to a NSW Court of Appeal judgment, the successful candidate, Stephen Riddell, worked for Wedeco for 18 months before it was discovered that his qualifications were false.
Wedeco found Riddell was an undischarged bankrupt and that "in his business activities he had engaged in fraudulent practices''.
Wedeco sought damages for breach of contract and for negligence and recovery of loss suffered.
The court heard that when the recruiter put forward Mr Riddell for the job, his CV said he had been employed as an area manager with another company, Tyco, for the past two years
In reality, Mr Riddell had stopped working for Tyco 5 months earlier.
Two Tyco employees nominated by Mr Riddell as referees said that when asked for a reference, they told the recruiter he no longer worked for the company and they could not speak about his work performance.
His former supervisor said that had the recruiter contacted him, he would have said Mr Riddell had had two warnings and that he was in the process of recommending his sacking when Riddell resigned.
The court found the recruitment firm breached its contract with Wedeco and its duty of care because the company failed to speak to the two referees.
It was ordered to pay $164,224 to Wedeco.
First, Microsemi as reported in the FT by Richard Waters
In spite of the new spirit of puritanism sweeping through US boardrooms, some chief executives are still being forgiven an occasional lapse into dishonesty.
That was the stance taken this week by directors of Microsemi, a small Californian technology company, after it was revealed that the company's chief executive had been less than forthright about his educational qualifications.
Rather than showing Jim Peterson the door - the fate that has often befallen other chief executives who have lied about their credentials - Microsemi's directors have decided that he should stay on, although with financial penalties that could cost him $1m.
News of the board's leniency drew a mixed reaction. "It's one data point about a person, about their willingness to falsify a record in a tight spot," said Wayne Norman, professor of ethics and philosophy at Duke University.
He added, though, that the company's directors were right to take a broader view of Mr Peterson's conduct over a number of years, and to consider the impact on shareholders of making a leadership change.
Justifying the decision not to jettison the chief executive after his nine years at the helm, Dennis Leibel, chairman, said: "The board's mission is to protect shareholder interests by balancing the results of the independent inquiry against the great value and strategic vision that Jim Peterson has created at Microsemi." He credited the chief executive with building a "highly successful and profitable enterprise".
Complicating the case was the fact that the disclosure about Mr Peterson's false credentials was made by Barry Minkow, a short-seller who has a track record of profiting by uncovering such irregularities.
The work of short-sellers in ferreting out discrepancies like this probably helped in the longer term to keep chief executives honest, said Mr Norman.
In a regulatory filing, Microsemi said that an investigation by law firm Munger Tolles & Olson had concluded that Mr Peterson did not have a bachelor's degree and MBA from Brigham Young University, as he had claimed.
Instead, he had been awarded an associate's degree by a college that later became part of Brigham Young, and had also earned "substantial credits" towards a bachelor's degree at the university.
Microsemi said it would impose financial penalties on Mr Peterson, while also introducing a heightened level of scrutiny that would involve deeper background checks into its senior executives.
While adding that the company "takes this matter very seriously", Mr Leibel stopped short of criticising the chief executive's dishonesty directly and said the company's directors "are not commenting on his beliefs, understandings or state of mind".
Meanwhile, in Australia...
A COMPANY has won more than $160,000 compensation from a recruitment firm that recommended a manager who was a former bankrupt and fraud.
The firm failed to conduct adequate background checks on the sales manager, who subsequently defrauded the company of $120,000.
Sydney water treatment equipment supplier Wedeco hired Driver Recruitment, trading as Authorised Solutions, to find sales manager for Southeast Asia, reports The Australian.
According to a NSW Court of Appeal judgment, the successful candidate, Stephen Riddell, worked for Wedeco for 18 months before it was discovered that his qualifications were false.
Wedeco found Riddell was an undischarged bankrupt and that "in his business activities he had engaged in fraudulent practices''.
Wedeco sought damages for breach of contract and for negligence and recovery of loss suffered.
The court heard that when the recruiter put forward Mr Riddell for the job, his CV said he had been employed as an area manager with another company, Tyco, for the past two years
In reality, Mr Riddell had stopped working for Tyco 5 months earlier.
Two Tyco employees nominated by Mr Riddell as referees said that when asked for a reference, they told the recruiter he no longer worked for the company and they could not speak about his work performance.
His former supervisor said that had the recruiter contacted him, he would have said Mr Riddell had had two warnings and that he was in the process of recommending his sacking when Riddell resigned.
The court found the recruitment firm breached its contract with Wedeco and its duty of care because the company failed to speak to the two referees.
It was ordered to pay $164,224 to Wedeco.
Friday, 23 January 2009
The Right Fit
Companies which rely on finding out just how good their new recruits are once they are in the job could be putting their finances and reputation at risk. This is the key message in a new guide produced by recruitment communications and candidate assessment experts, TMP Worldwide.In its latest White Paper ‘The Right Fit: Reducing the Risk of Recruitment’, TMP provides organisations with a guide to measuring the value of potential employees before they are in position.TMP Worldwide, Chief Executive, Andrew Wilkinson who launched the White paper at the HR Business Directors Summit held at the ICC in Birmingham on the 21st and 22nd January (http://www.hrevent.com/), says finding the ‘right fit’ means being clear about which behaviours lead to effective performance for your organisation. These need to be measured against the specific requirements of the job i.e. job competencies and should be linked to how organisations attract candidates via their employer brand.“Now, more than ever, expensive mistakes in recruiting the wrong people cannot afford to be made. Companies need to make sure they are attracting and retaining people who will add maximum value rather than just fill vacancies,” said Wilkinson.He suggests that the following four step approach will eradicate risky recruitment based on gut instinct.1. Understand the behaviours that lead to better performance which should be documented in an organisational competency model2. Attract the right people through defining and communicating an honest and compelling employer brand3. Create a ‘fit for purpose’ recruitment process4. Engage with candidates in their journey to becoming employees through a seamless on boarding programme.The White Paper takes business leader and recruiters through defining, creating and communicating an organisational competency model.According to TMP’s Wilkinson, Employer Brand is also key in establishing the differentiator that makes a company stand out from it competitors. “Having an effectively managed employer brand can improve engagement levels by up to 30% and increase the size of the labour pool by around 50%,” he said.When it comes to finding the ‘right fit’ Wilkinson recommends that companies start by identifying the behaviours and characteristics of high performing individuals to understand ‘what great looks like’. Once this is in place recruiters can use a number of tools from competency-based interviews, competency-sifting questionnaires and tailored assessment centre exercises to detect a candidate’s suitability for a role, says Wilkinson.Through the AMEC Nuclear case study within the White Paper, recruiters can see how TMP helped the company to create a competency framework which its HR and Capability Director says will differentiate AMEC Nuclear and drive the business forward.“Organisations will see immediate value and reduced recruitment risk from our ‘right fit’ approach which will identify the right people with the right behaviours for the company’s culture and vision,” concluded Wilkinson.‘The Right Fit: Reducing the Risk of Recruitment’ is available via email. Please contact Amy Johnson at amy.johnson@tmpw.co.uk
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Finding the right fit with a new recruit is truly the "Holy Grail" in resourcing. Time and again we interview line managers who give every indication that an applicant would not be the right fit for the organisation they are joining. Subsequent research proves that indeed the longevity of the employee is short and the performance leaves a lot to be desired. The skills and abilities may be there, but further assessment is imperative when making the recruitment decision. At Powerchex we talk to referees and this helps us communicate to the resourcing team our observations on the fit of the applicant. It is quite often that an offer is retracted based on this criteria. Now that the labour market is a bit looser, I would recommend to companies to take the time and effort to establish the right fit when making their decision.
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Finding the right fit with a new recruit is truly the "Holy Grail" in resourcing. Time and again we interview line managers who give every indication that an applicant would not be the right fit for the organisation they are joining. Subsequent research proves that indeed the longevity of the employee is short and the performance leaves a lot to be desired. The skills and abilities may be there, but further assessment is imperative when making the recruitment decision. At Powerchex we talk to referees and this helps us communicate to the resourcing team our observations on the fit of the applicant. It is quite often that an offer is retracted based on this criteria. Now that the labour market is a bit looser, I would recommend to companies to take the time and effort to establish the right fit when making their decision.
Thursday, 8 January 2009
Checking Suppliers is Good Corporate Governance
The Financial Services Authority (FSA) has today fined Aon Limited (Aon Ltd) £5.25 million for failing to take reasonable care to establish and maintain effective systems and controls to counter the risks of bribery and corruption associated with making payments to overseas firms and individuals.
According to the report published today by the FSA, between 14 January 2005 and 30 September 2007, “Aon Ltd failed to properly assess the risks involved in its dealings with overseas firms and individuals who helped it win business and failed to implement effective controls to mitigate those risks. As a result of Aon Ltd’s weak control environment, the firm made various suspicious payments, amounting to approximately US$7 million, to a number of overseas firms and individuals. “
Margaret Cole, director of enforcement, said: “This is the largest financial crime related fine imposed by the FSA to date. It sends a clear message to the UK financial services industry that it is completely unacceptable for firms to conduct business overseas without having in place appropriate anti-bribery and corruption systems and controls.”
In April 2008 the FSA published its paper on Data Security where it states that firms should conduct due diligence on third party suppliers including ensuring third party suppliers’ vetting standards are adequate.
__________________________________________________
It is not unusual for companies with robust employee vetting programmes to neglect to apply the same standards to the third parties they deal with. This case and the size of the fine levied, clearly demonstrate the perils that this practice can entail.
According to the report published today by the FSA, between 14 January 2005 and 30 September 2007, “Aon Ltd failed to properly assess the risks involved in its dealings with overseas firms and individuals who helped it win business and failed to implement effective controls to mitigate those risks. As a result of Aon Ltd’s weak control environment, the firm made various suspicious payments, amounting to approximately US$7 million, to a number of overseas firms and individuals. “
Margaret Cole, director of enforcement, said: “This is the largest financial crime related fine imposed by the FSA to date. It sends a clear message to the UK financial services industry that it is completely unacceptable for firms to conduct business overseas without having in place appropriate anti-bribery and corruption systems and controls.”
In April 2008 the FSA published its paper on Data Security where it states that firms should conduct due diligence on third party suppliers including ensuring third party suppliers’ vetting standards are adequate.
__________________________________________________
It is not unusual for companies with robust employee vetting programmes to neglect to apply the same standards to the third parties they deal with. This case and the size of the fine levied, clearly demonstrate the perils that this practice can entail.
Jail time for applicants who lie on their CVs
NHS’s pre-employment screening practices come under scrutiny after director jailed for CV exaggerations. A senior director at the NHS has been jailed for exaggerating his qualifications during his job application.
In January 2007 Lee Whitehead was appointed director of planning and modernisation at Stoke-on-Trent Primary Care Trust (PCT) after falsely claiming that in addition to being a member of the British Psychological Society (BPS) he had a first class bachelors degree, a Master’s degree and a doctorate, when in fact he only held a second class BSc in Psychology and was not a member of the BPS.
6 months after bring appointed Mr Whitehead resigned his £78,000 a year job after suspicions were raised by a coworker and Mr Whitehead was unable to provide proof of his qualifications. Even though the post-holder was not required to hold either a Master's or a PhD, or be a member of the BPS, the court handed out a 12 week prison sentence after Mr Whitehead pleaded guilty to obtaining a pecuniary advantage by deception and making a false instrument.
The lies were not discovered by pre-employment screening checks but by a suspicious coworker and Mr Whitehead had made the same claims on applications going back to June 2003. These included the Vale of Aylesbury PCT, where he had worked from April 2005 until he started employment with Stoke PCT.
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It is very surprising that the NHS has chosen to appoint a senior official without checking their qualifications. Mr Whitehead occupied a position of public trust in a Primary Care Trust and there is no excuse that his background wasn’t thoroughly investigated at the recruitment stage.
This is not the first time that the NHS has failed to spot fraudulent applicants for senior positions. In 2003, Neil Taylor produced a bogus degree certificate to land the position as head of the Shrewsbury and Telford Hospitals NHS Trust. The risks that the NHS takes when they skimp on the background investigation or when they start an applicant prior to the checks being completed can have very serious repercussions and it is a particularly risky approach when the qualifications are of a clinical nature. This can endanger patients' lives.
In January 2007 Lee Whitehead was appointed director of planning and modernisation at Stoke-on-Trent Primary Care Trust (PCT) after falsely claiming that in addition to being a member of the British Psychological Society (BPS) he had a first class bachelors degree, a Master’s degree and a doctorate, when in fact he only held a second class BSc in Psychology and was not a member of the BPS.
6 months after bring appointed Mr Whitehead resigned his £78,000 a year job after suspicions were raised by a coworker and Mr Whitehead was unable to provide proof of his qualifications. Even though the post-holder was not required to hold either a Master's or a PhD, or be a member of the BPS, the court handed out a 12 week prison sentence after Mr Whitehead pleaded guilty to obtaining a pecuniary advantage by deception and making a false instrument.
The lies were not discovered by pre-employment screening checks but by a suspicious coworker and Mr Whitehead had made the same claims on applications going back to June 2003. These included the Vale of Aylesbury PCT, where he had worked from April 2005 until he started employment with Stoke PCT.
______________________________________________
It is very surprising that the NHS has chosen to appoint a senior official without checking their qualifications. Mr Whitehead occupied a position of public trust in a Primary Care Trust and there is no excuse that his background wasn’t thoroughly investigated at the recruitment stage.
This is not the first time that the NHS has failed to spot fraudulent applicants for senior positions. In 2003, Neil Taylor produced a bogus degree certificate to land the position as head of the Shrewsbury and Telford Hospitals NHS Trust. The risks that the NHS takes when they skimp on the background investigation or when they start an applicant prior to the checks being completed can have very serious repercussions and it is a particularly risky approach when the qualifications are of a clinical nature. This can endanger patients' lives.
Wednesday, 24 December 2008
Employment Offers in the City Continue to Tumble
Financial services firms’ recruitment drops significantly in response to the turmoil in the markets.
London, December 24th, 2008. Employment offers across financial services companies fell by 20% in November compared to the previous month. IT contractors working in financial services fell by 75% for the corresponding period, according to research carried out by Powerchex Limited, a pre-employment screening firm for financial institutions.
Investment Banks continued to cut back significantly on their new hires with a 55% drop in employment offers from October to November. Hedge funds and stock broking firms registered similar drops in offers made and accepted. Insurance firms bucked the trend with an increase of 10% in offers made in the past month.
“Recruitment is the financial sector is taking an unsurprising hit as companies are contracting in response to dramatically changing circumstances.” says Alexandra Kelly, Managing Director of Powerchex. “Applicants will need to adjust their expectation and take a more structured approach in their job search. Even though the temptation is there, applicants should not risk losing a good opportunity by exaggerating their credentials.”
London, December 24th, 2008. Employment offers across financial services companies fell by 20% in November compared to the previous month. IT contractors working in financial services fell by 75% for the corresponding period, according to research carried out by Powerchex Limited, a pre-employment screening firm for financial institutions.
Investment Banks continued to cut back significantly on their new hires with a 55% drop in employment offers from October to November. Hedge funds and stock broking firms registered similar drops in offers made and accepted. Insurance firms bucked the trend with an increase of 10% in offers made in the past month.
“Recruitment is the financial sector is taking an unsurprising hit as companies are contracting in response to dramatically changing circumstances.” says Alexandra Kelly, Managing Director of Powerchex. “Applicants will need to adjust their expectation and take a more structured approach in their job search. Even though the temptation is there, applicants should not risk losing a good opportunity by exaggerating their credentials.”
Friday, 19 December 2008
FSA Signals Tougher Vetting Requirements For Approved Persons Warns Pre-Employment Screening Company Powerchex
The credit crunch and bank bailouts have resulted in a global enhancement (and enforcement) of regulation. Pre-employment screening, especially in the financial services sector has also gotten a good deal of attention with new directives and guidance coming from different regulatory bodies.
______________________________________
The Financial Services Authority (FSA) has today published a consultation paper (CP) that clarifies the FSA’s expectations of those within firms that perform a ‘significant influence’ functions. The CP proposes several significant amendments to the FSA handbook.
In a move reminiscent of the Sarbanes Oxley legislation in the US, the FSA vows to pursue cases against individuals who breach the FSA’s Principles and the Code of Practice for Approved Persons.
“The FSA has made a strategic decision to investigate more individuals” says Alexandra Kelly, MD of City pre-employment screening company Powerchex, “they (the FSA) believe that this increased scrutiny will discourage questionable individuals from applying for significant management roles within the industry.”
The FSA has already started to interview more applicants for 'significant influence’ posts at high impact firms and is planning enforcement action if an individual is offered a post and subsequently fails to meet the required standards.
“This represents a significant change for financial firms. By introducing fines the FSA is sending a clear sign to companies that they should focus on undertaking proper due diligence.” claims Kelly. “As a further safeguard, firms should keep proper documentation of their vetting process in case they need to justify their decision on a particular applicant. They also need to be aware that this new process will introduce delays to the deployment of senior managers and plan accordingly.”
The other significant amendment proposes to extend the rule obliging firms to provide references for applicants of the CF30 (customer function) to all controlled functions if requested to do so.
“With this amendment the FSA is closing a gap in the referencing for approved persons” states Kelly. “There are no good reasons why the rule should not be extended to significant management functions, in fact, there are very good reasons why it should.
“It is critical, not just for the firm, but for market confidence that our major institutions are soundly run by individuals who have clearly demonstrated that they have the necessary skills, experience and integrity” states Graeme Ashley-Fenn, director of permissions, decisions and reporting division at the FSA. “Our vetting process is not intended to be a substitute for a firm undertaking proper due diligence itself – responsibility for this still lies with a firm’s senior management. These proposals align with a shift in FSA focus: where a significant influence holder shows incompetence or dishonesty, we will consider enforcement action against him or her.”
The consultation period closes on 31 March 2009. The FSA will then finalise the proposals and publish revised rules in a policy statement during the second quarter of 2009.
____________________
CP 08/25: The approved persons regime – significant influence function review can be found on the FSA website.
______________________________________
The Financial Services Authority (FSA) has today published a consultation paper (CP) that clarifies the FSA’s expectations of those within firms that perform a ‘significant influence’ functions. The CP proposes several significant amendments to the FSA handbook.
In a move reminiscent of the Sarbanes Oxley legislation in the US, the FSA vows to pursue cases against individuals who breach the FSA’s Principles and the Code of Practice for Approved Persons.
“The FSA has made a strategic decision to investigate more individuals” says Alexandra Kelly, MD of City pre-employment screening company Powerchex, “they (the FSA) believe that this increased scrutiny will discourage questionable individuals from applying for significant management roles within the industry.”
The FSA has already started to interview more applicants for 'significant influence’ posts at high impact firms and is planning enforcement action if an individual is offered a post and subsequently fails to meet the required standards.
“This represents a significant change for financial firms. By introducing fines the FSA is sending a clear sign to companies that they should focus on undertaking proper due diligence.” claims Kelly. “As a further safeguard, firms should keep proper documentation of their vetting process in case they need to justify their decision on a particular applicant. They also need to be aware that this new process will introduce delays to the deployment of senior managers and plan accordingly.”
The other significant amendment proposes to extend the rule obliging firms to provide references for applicants of the CF30 (customer function) to all controlled functions if requested to do so.
“With this amendment the FSA is closing a gap in the referencing for approved persons” states Kelly. “There are no good reasons why the rule should not be extended to significant management functions, in fact, there are very good reasons why it should.
“It is critical, not just for the firm, but for market confidence that our major institutions are soundly run by individuals who have clearly demonstrated that they have the necessary skills, experience and integrity” states Graeme Ashley-Fenn, director of permissions, decisions and reporting division at the FSA. “Our vetting process is not intended to be a substitute for a firm undertaking proper due diligence itself – responsibility for this still lies with a firm’s senior management. These proposals align with a shift in FSA focus: where a significant influence holder shows incompetence or dishonesty, we will consider enforcement action against him or her.”
The consultation period closes on 31 March 2009. The FSA will then finalise the proposals and publish revised rules in a policy statement during the second quarter of 2009.
____________________
CP 08/25: The approved persons regime – significant influence function review can be found on the FSA website.
Friday, 12 December 2008
HR Will See Increase In Corporate Fraud
Aliah D Wright, online editor for SHRM reports on a very disturbing trend which is emerging as the labour and financial markets become tighter. Our experience here at Powerchex, further re-enforces the results of this study, as we have seen a significant increase in application fraud.
_________________________________
Corporate fraud is on the rise, and, despite new laws to curb such abuse, this trend will significantly impact human resource professionals, says an expert in business intelligence. According to recently released Global Fraud Report, the average company loss to fraud has increased by 22 percent. The losses are largely driven by the credit crunch and troubled economic climate attributable to the subprime mortgage nightmare.
On average, businesses have lost $8.2 million to fraud in the past three years, compared with the 2007 figure, which stood at $7.6 million. The figures come from a study commissioned from the Economist Intelligence Unit based on a survey of 890 senior executives worldwide.What Types of Fraud?
The fastest-growing types of fraud were information theft (27 percent, up from 22 percent) and regulatory and compliance breaches (25 percent, up from 19 percent).
A closer look revealed that more than four out of five companies surveyed (85 percent) have suffered from corporate fraud in the past three years, up from 80 percent in the 2007 survey. For large companies, the proportion suffering from fraud rose to 90 percent, according to the study.
When it comes to breaches in compliance, HR is in the middle of the fray, having to manage compliance because of Section 404 of the Sarbanes-Oxley Act of 2002, which requires U.S. public companies and their independent auditors to show the Securities and Exchange Commission (SEC) that their financial numbers are accurate and that they have processes in place to ensure that accuracy.
And the cost of complying isn't cheap.
According to the Financial Executives International's seventh Sarbanes-Oxley (SOX) compliance survey, the average 2007 SOX compliance cost was $1.7 million.
"Federal authorities--the SEC, Department of Justice and the U.S. attorney's office will apply regulations in new and unique ways in order to stem corporate improper activities and make sure there is more corporate accountability," Coppotelli said.
This might make HR's job even more challenging--especially given today's climate in which the federal government is willing to step in and aid those who might have committed corporate malfeasance in the subprime mortgage debacle.
"I think the whole subprime issue has yet to be fully addressed in terms of malfeasance," Coppotelli said.
$7.6M AMOUNT LOST BY BUSINESSES IN 2007 ATTRIBUTABLE TO CORPORATE FRAUD.
~~~~~~~~
By Aliah D. Wright
Aliah D. Wright, an online editor/manager for SHRM.
_________________________________
Corporate fraud is on the rise, and, despite new laws to curb such abuse, this trend will significantly impact human resource professionals, says an expert in business intelligence. According to recently released Global Fraud Report, the average company loss to fraud has increased by 22 percent. The losses are largely driven by the credit crunch and troubled economic climate attributable to the subprime mortgage nightmare.
On average, businesses have lost $8.2 million to fraud in the past three years, compared with the 2007 figure, which stood at $7.6 million. The figures come from a study commissioned from the Economist Intelligence Unit based on a survey of 890 senior executives worldwide.What Types of Fraud?
The fastest-growing types of fraud were information theft (27 percent, up from 22 percent) and regulatory and compliance breaches (25 percent, up from 19 percent).
A closer look revealed that more than four out of five companies surveyed (85 percent) have suffered from corporate fraud in the past three years, up from 80 percent in the 2007 survey. For large companies, the proportion suffering from fraud rose to 90 percent, according to the study.
When it comes to breaches in compliance, HR is in the middle of the fray, having to manage compliance because of Section 404 of the Sarbanes-Oxley Act of 2002, which requires U.S. public companies and their independent auditors to show the Securities and Exchange Commission (SEC) that their financial numbers are accurate and that they have processes in place to ensure that accuracy.
And the cost of complying isn't cheap.
According to the Financial Executives International's seventh Sarbanes-Oxley (SOX) compliance survey, the average 2007 SOX compliance cost was $1.7 million.
"Federal authorities--the SEC, Department of Justice and the U.S. attorney's office will apply regulations in new and unique ways in order to stem corporate improper activities and make sure there is more corporate accountability," Coppotelli said.
This might make HR's job even more challenging--especially given today's climate in which the federal government is willing to step in and aid those who might have committed corporate malfeasance in the subprime mortgage debacle.
"I think the whole subprime issue has yet to be fully addressed in terms of malfeasance," Coppotelli said.
$7.6M AMOUNT LOST BY BUSINESSES IN 2007 ATTRIBUTABLE TO CORPORATE FRAUD.
~~~~~~~~
By Aliah D. Wright
Aliah D. Wright, an online editor/manager for SHRM.
Tuesday, 9 December 2008
Festive scam alert
Scam-artists are more likely to target their victims during the festive period and in an economic downturn, the Office of Fair Trading (OFT) has warned. From miracle slimming products which would be aimed at those hoping to lose weight after Christmas parties, to the threat of online identity theft, consumers should be extra careful with their identities and their money. Scam-artists offering swift cash rewards were likely to be more active during the economic downturn. Consumers should regularly monitor their bank accounts and alert their bank whenever they see transactions which they do not recognise.
Wednesday, 26 November 2008
Powerchex wins the "NatWest Business of the Year 2008" Award
Six hundred people attended the NatWest Thames Gateway Business Awards last Friday, 21st November at the Excel, London in a celebration of entrepreneurship designed to recognise and honour the Thames Gateway’s top businesses.
Powerchex, the leader in pre-employment screening solutions for financial firms scooped the top award for the evening presented by TV chef and former star of Strictly Come Dancing James Martin. In addition to winning the Business of the Year Award, Powerchex was also highly commended in the Innovation category for its accredited graduate development programme “STARS”.
Powerchex has beaten off stiff competition to win Business of the Year in the 2008 NatWest Thames Gateway Awards – the region’s premier showcase for the most promising businesses and the inspirational entrepreneurs behind them.
Alexandra Kelly, the MD of Powerchex, originally asked the BBC dragons to invest in her idea for a company specialising in staff referencing for the financial services industry. But when they said no, she decided to go it alone – and four years later Powerchex is the fastest-growing vetting and job referencing service in the UK boasting an office in the city, 40 staff, and an impressive roster of first rate financial clients.
“Being recognised as the Business of the Year in these prestigious awards is the crowning achievement in a year that can only be described as incredible” said Alexandra. “Having doubled in size and revenues in the past year, Powerchex is now ready to start a new year of success and innovation.”
"The 11th Archant London Thames Gateway Business Awards was a huge success” added Enzo Testa, Executive Managing Director of Archant the event’s organisers.
“The calibre of entries from businesses and individuals was extremely high and the evening was recognition of the drive and determination within the community to ensure that the area thrives over the coming years."
In addition to winning the Thames Gateway Business of the Year Award, Powerchex participated in the Thames Valley Business Awards, where it was awarded a high commendation in the Small Business category. The award was presented by Rt Hon Margaret Beckett MP, former Foreign Secretary and deputy leader of the Labour Party and was sponsored by Regus.
Thursday, 20 November 2008
Criminal records on sale for just £37
Employers have been found to abuse the system in obtaining CRB checks for roles which do not justify this type of in-depth criminal search. The Sunday Times investigated the allegations and came up with some very interesting findings (see article below). CRB criminal searches are different from Basic Criminal Searches (offered through Disclosure Scotland) which are available and legal for any level of employee.
Basic Criminal Searches only disclose unspent criminal convictions
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Police files that were opened up with the aim of helping to protect children from sex offenders are being sold for as little as £37 to employers who simply want to find out more about job applicants.
The Criminal Records Bureau (CRB), an executive agency of the Home Office, was set up six years ago to carry out checks on prospective employees whose work would bring them into contact with children and vulnerable adults. Its declared aim is to identify those unsuitable for such work.
But a Sunday Times investigation has established that the CRB is passing files to more than 50 recruitment agencies and corporate investigators which check the background of people applying for jobs that may have nothing to do with children or other vulnerable groups.
Some offer unlawful checks of potential business partners and staff, ranging from web designers to clerical workers. The disclosures mean further questions for Jacqui Smith, the home secretary, already embroiled in a row over the loss of criminal data.
Last week Paul Cavadino, the chief executive of Nacro, a charity that works to reduce crime, called for an inquiry into the trade in CRB records. He said: “The law is clearly being flouted in some cases and it is outrageous that it has been allowed to happen.”
One of the agencies accredited by the CRB — the United Criminal Records Bureau — offers criminal record checks for potential employees for £37. For an extra £5 it can supply an enhanced check that may include unproven police intelligence.
Operating out of a detached house in Bexleyheath, Kent, it claims to scrutinise thousands of police records each year. When approached last week by an undercover reporter asking for information about medical sales staff, it offered checks on a range of employees “as long as you are willing to pay upfront”.
Meena Thiagarajan, a director of the company which operates United Criminal Records Bureau, recommended enhanced checks for administrative staff who were handling confidential company documents. “Whatever they’ve done in their entire life will come up on their enhanced disclosure,” she claimed.
She said an employee’s agreement should be obtained for a request for the file but admitted that she did not obtain original documentation, such as a passport, to check the validity of the application. The reporter did not follow up her offer by submitting an application.
When confronted by The Sunday Times, Thiagarajan said all applications were carefully checked and she would not have submitted an unlawful one. In some cases enhanced checks on administrative staff were justified, she said.
The CRB was established under the Police Act 1997, which stipulates that checks be confined to those working with children and vulnerable adults, and some specific jobs such as police officers, lawyers and accountants. It was launched in March 2002 with the objective of improving access to criminal records in the interests of public safety.
The owner of another CRB-accredited agency, who asked not to be identified, said legal checks on credit card ratings, mortgage details and driving records were routinely checked for job applicants. She said some companies were also offering unlawful checks on criminal records, with a complete background check costing as much as £100.
“It’s easy to abuse the system,” she said. “You can get almost anyone’s criminal record because there are no proper checks to ensure you’re complying with the law.”
At least some of the information held by the CRB appears to have been sent to companies overseas. The CRB lists one company on its website, Personnel Profile Specialists Ltd (PPSL), at a residential address in Upminster, Essex, but its head office is in Auckland, New Zealand.
The PPSL website states: “PPSL are unique in New Zealand as we are the only organisation with an office in the UK registered to access records from the Criminal Records Bureau . . . this has proven exceptionally useful to our clients.”
Richard Peach, who owns the company, said it was not currently accredited by the CRB but had always complied with rules when checking British criminal records.
The law was a “grey area”, he said. But he believed a criminal record, once in the public domain, should be accessible.
Many employees are worried by the ease with which dubious or borderline checks can be made because of the minor misdemeanours and unproven allegations that can be unearthed. In one case, the subject of a complaint to the information commissioner, a CRB search revealed the theft of a packet of meat worth 99p in 1984 when the person involved was 16.
Nacro now gets about 20,000 calls a year from people with concerns about the CRB system, including unlawful checks, compared to about 7,000 a year when it was first launched.
A CRB helpline offers little support. One caller who complained of an unlawful check last week was told there was little the CRB could do to help, even though it was accepted by the telephone operator that the rules appeared to have been broken. “If you don’t comply, obviously they will not employ you,” the caller was told.
In a landmark case Derek Howman, 46, from Weaverham, Cheshire, who was fired from his job as a gardener at a residential home after an enhanced CRB check, is taking legal action. He claims the check, which revealed two spent offences, was unlawful. He is seeking compensation.
His case is backed by the information commissioner, who concluded that the CRB check appeared to be unwarranted.
Nacro says it would prefer new a system where employees in the caring professions are vetted by a licensing authority without the criminal records being sent to employers.
The Home Office stated that agencies could have their accreditation removed if they carried out improper checks.
Basic Criminal Searches only disclose unspent criminal convictions
...............................................................................................
Police files that were opened up with the aim of helping to protect children from sex offenders are being sold for as little as £37 to employers who simply want to find out more about job applicants.
The Criminal Records Bureau (CRB), an executive agency of the Home Office, was set up six years ago to carry out checks on prospective employees whose work would bring them into contact with children and vulnerable adults. Its declared aim is to identify those unsuitable for such work.
But a Sunday Times investigation has established that the CRB is passing files to more than 50 recruitment agencies and corporate investigators which check the background of people applying for jobs that may have nothing to do with children or other vulnerable groups.
Some offer unlawful checks of potential business partners and staff, ranging from web designers to clerical workers. The disclosures mean further questions for Jacqui Smith, the home secretary, already embroiled in a row over the loss of criminal data.
Last week Paul Cavadino, the chief executive of Nacro, a charity that works to reduce crime, called for an inquiry into the trade in CRB records. He said: “The law is clearly being flouted in some cases and it is outrageous that it has been allowed to happen.”
One of the agencies accredited by the CRB — the United Criminal Records Bureau — offers criminal record checks for potential employees for £37. For an extra £5 it can supply an enhanced check that may include unproven police intelligence.
Operating out of a detached house in Bexleyheath, Kent, it claims to scrutinise thousands of police records each year. When approached last week by an undercover reporter asking for information about medical sales staff, it offered checks on a range of employees “as long as you are willing to pay upfront”.
Meena Thiagarajan, a director of the company which operates United Criminal Records Bureau, recommended enhanced checks for administrative staff who were handling confidential company documents. “Whatever they’ve done in their entire life will come up on their enhanced disclosure,” she claimed.
She said an employee’s agreement should be obtained for a request for the file but admitted that she did not obtain original documentation, such as a passport, to check the validity of the application. The reporter did not follow up her offer by submitting an application.
When confronted by The Sunday Times, Thiagarajan said all applications were carefully checked and she would not have submitted an unlawful one. In some cases enhanced checks on administrative staff were justified, she said.
The CRB was established under the Police Act 1997, which stipulates that checks be confined to those working with children and vulnerable adults, and some specific jobs such as police officers, lawyers and accountants. It was launched in March 2002 with the objective of improving access to criminal records in the interests of public safety.
The owner of another CRB-accredited agency, who asked not to be identified, said legal checks on credit card ratings, mortgage details and driving records were routinely checked for job applicants. She said some companies were also offering unlawful checks on criminal records, with a complete background check costing as much as £100.
“It’s easy to abuse the system,” she said. “You can get almost anyone’s criminal record because there are no proper checks to ensure you’re complying with the law.”
At least some of the information held by the CRB appears to have been sent to companies overseas. The CRB lists one company on its website, Personnel Profile Specialists Ltd (PPSL), at a residential address in Upminster, Essex, but its head office is in Auckland, New Zealand.
The PPSL website states: “PPSL are unique in New Zealand as we are the only organisation with an office in the UK registered to access records from the Criminal Records Bureau . . . this has proven exceptionally useful to our clients.”
Richard Peach, who owns the company, said it was not currently accredited by the CRB but had always complied with rules when checking British criminal records.
The law was a “grey area”, he said. But he believed a criminal record, once in the public domain, should be accessible.
Many employees are worried by the ease with which dubious or borderline checks can be made because of the minor misdemeanours and unproven allegations that can be unearthed. In one case, the subject of a complaint to the information commissioner, a CRB search revealed the theft of a packet of meat worth 99p in 1984 when the person involved was 16.
Nacro now gets about 20,000 calls a year from people with concerns about the CRB system, including unlawful checks, compared to about 7,000 a year when it was first launched.
A CRB helpline offers little support. One caller who complained of an unlawful check last week was told there was little the CRB could do to help, even though it was accepted by the telephone operator that the rules appeared to have been broken. “If you don’t comply, obviously they will not employ you,” the caller was told.
In a landmark case Derek Howman, 46, from Weaverham, Cheshire, who was fired from his job as a gardener at a residential home after an enhanced CRB check, is taking legal action. He claims the check, which revealed two spent offences, was unlawful. He is seeking compensation.
His case is backed by the information commissioner, who concluded that the CRB check appeared to be unwarranted.
Nacro says it would prefer new a system where employees in the caring professions are vetted by a licensing authority without the criminal records being sent to employers.
The Home Office stated that agencies could have their accreditation removed if they carried out improper checks.
Wednesday, 19 November 2008
The 2007 International Privacy Ranking
We are often asked about data privacy and data protection globally. We hope that the country rankings of Privacy International together with the individual country comments will help answer some of your questions.
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Each year since 1997, the US-based Electronic Privacy Information Center and the UK-based Privacy International have undertaken what has now become the most comprehensive survey of global privacy ever published. The Privacy & Human Rights Report surveys developments in 70 countries, assessing the state of surveillance and privacy protection.
The most recent report published in 2007, available at http://www.privacyinternational.org/phr , is probably the most comprehensive single volume report published in the human rights field. The report runs over 1,100 pages and includes 6,000 footnotes. More than 200 experts from around the world have provided materials and commentary. The participants range from eminent privacy scholars to high-level officials charged with safeguarding constitutional freedoms in their countries. Academics, human rights advocates, journalists and researchers provided reports, insight, documents and advice. In 2006 Privacy International took the decision to use this annual report as the basis for a ranking assessment of the state of privacy in all EU countries together with eleven non-EU benchmark countries (click here for the 2006 results). Follow this link for more details of last year's results.
The new 2007 global rankings extend the survey to 47 countries (from the original 37) and, for the first time, provide an opportunity to assess trends.
Summary of key findings
The 2007 rankings indicate an overall worsening of privacy protection across the world, reflecting an increase in surveillance and a declining performance o privacy safeguards.
Concern over immigration and border control dominated the world agenda in 2007. Countries have moved swiftly to implement database, identity and fingerprinting systems, often without regard to the privacy implications for their own citizens
The 2007 rankings show an increasing trend amongst governments to archive data on the geographic, communications and financial records of all their citizens and residents. This trend leads to the conclusion that all citizens, regardless of legal status, are under suspicion.
The privacy trends have been fueled by the emergence of a profitable surveillance industry dominated by global IT companies and the creation of numerous international treaties that frequently operate outside judicial or democratic processes.
Despite political shifts in the US Congress, surveillance initiatives in the US continue to expand, affecting visitors and citizens alike.
Surveillance initiatives initiated by Brussels have caused a substantial decline in privacy across Europe, eroding protections even in those countries that have shown a traditionally high regard for privacy.
The privacy performance of older democracies in Europe is generally failing, while the performance of newer democracies is becoming generally stronger.
The lowest ranking countries in the survey continue to be Malaysia, Russia and China. The highest-ranking countries in 2007 are Greece, Romania and Canada.
The 2006 leader, Germany, slipped significantly in the 2007 rankings, dropping from 1st to 7th place behind Portugal and Slovenia.
In terms of statutory protections and privacy enforcement, the US is the worst ranking country in the democratic world. In terms of overall privacy protection the United States has performed very poorly, being out-ranked by both India and the Philippines and falling into the "black" category, denoting endemic surveillance.
The worst ranking EU country is the United Kingdom, which again fell into the "black" category along with Russia and Singapore. However for the first time Scotland has been given its own ranking score and performed significantly better than England & Wales.
Argentina scored higher than 18 of the 27 EU countries.
Australia ranks higher than Slovakia but lower than South Africa and New Zealand.
...................................
Each year since 1997, the US-based Electronic Privacy Information Center and the UK-based Privacy International have undertaken what has now become the most comprehensive survey of global privacy ever published. The Privacy & Human Rights Report surveys developments in 70 countries, assessing the state of surveillance and privacy protection.
The most recent report published in 2007, available at http://www.privacyinternational.org/phr , is probably the most comprehensive single volume report published in the human rights field. The report runs over 1,100 pages and includes 6,000 footnotes. More than 200 experts from around the world have provided materials and commentary. The participants range from eminent privacy scholars to high-level officials charged with safeguarding constitutional freedoms in their countries. Academics, human rights advocates, journalists and researchers provided reports, insight, documents and advice. In 2006 Privacy International took the decision to use this annual report as the basis for a ranking assessment of the state of privacy in all EU countries together with eleven non-EU benchmark countries (click here for the 2006 results). Follow this link for more details of last year's results.
The new 2007 global rankings extend the survey to 47 countries (from the original 37) and, for the first time, provide an opportunity to assess trends.
Summary of key findings
The 2007 rankings indicate an overall worsening of privacy protection across the world, reflecting an increase in surveillance and a declining performance o privacy safeguards.
Concern over immigration and border control dominated the world agenda in 2007. Countries have moved swiftly to implement database, identity and fingerprinting systems, often without regard to the privacy implications for their own citizens
The 2007 rankings show an increasing trend amongst governments to archive data on the geographic, communications and financial records of all their citizens and residents. This trend leads to the conclusion that all citizens, regardless of legal status, are under suspicion.
The privacy trends have been fueled by the emergence of a profitable surveillance industry dominated by global IT companies and the creation of numerous international treaties that frequently operate outside judicial or democratic processes.
Despite political shifts in the US Congress, surveillance initiatives in the US continue to expand, affecting visitors and citizens alike.
Surveillance initiatives initiated by Brussels have caused a substantial decline in privacy across Europe, eroding protections even in those countries that have shown a traditionally high regard for privacy.
The privacy performance of older democracies in Europe is generally failing, while the performance of newer democracies is becoming generally stronger.
The lowest ranking countries in the survey continue to be Malaysia, Russia and China. The highest-ranking countries in 2007 are Greece, Romania and Canada.
The 2006 leader, Germany, slipped significantly in the 2007 rankings, dropping from 1st to 7th place behind Portugal and Slovenia.
In terms of statutory protections and privacy enforcement, the US is the worst ranking country in the democratic world. In terms of overall privacy protection the United States has performed very poorly, being out-ranked by both India and the Philippines and falling into the "black" category, denoting endemic surveillance.
The worst ranking EU country is the United Kingdom, which again fell into the "black" category along with Russia and Singapore. However for the first time Scotland has been given its own ranking score and performed significantly better than England & Wales.
Argentina scored higher than 18 of the 27 EU countries.
Australia ranks higher than Slovakia but lower than South Africa and New Zealand.
National Hunter: The secret credit agency
When we read this story in the Guardian we thought it was a hoax. All these years in the industry and we had never heard of it. Kind of an eye opener and how far off the beaten track personal information travels...
........................................................
It does not publicise its phone number or give an address beyond a PO box number belonging to a small office on a run-down street in Stoke-on-Trent.
Its name is unknown to the public. Yet it carries out around 100,000 credit checks every day, probing applications ranging from mortgages to car loans and store cards. Ask a bank or finance company why you've been rejected, and you will probably be told to contact one, or all, of the credit reference agencies - Callcredit, Equifax, and Experian - to see what they have on you. Send them £2 and you'll get a copy of your file by return.
Now Guardian Money can reveal there's a fourth agency, called "National Hunter", whose approval - or otherwise - can make or break an application. But, unlike the others, you won't find out the information it holds on you for £2, or be invited to apply online to check your data. Instead, National Hunter charges £10, the maximum allowed under the Data Protection Act.
Last year, 5m applications for credit were turned down across the industry, but how many were as a result of National Hunter is unknown. And, until now, the organisation's extremely low profile has meant that few individuals rejected for credit will have thought to check with National Hunter.
It was set up by a group of banks in 1993, but is now co-owned by 60 banks, building societies and specialist lenders. Its official headquarters are in Stoke-on-Trent though little of what it does takes place in the building. Although it's owned by the banks, National Hunter is managed and operated on a day-to-day basis by Experian, the giant of the credit agencies, based in Nottingham.
It does not assess creditworthiness in the same way as the other agencies - its sole purpose is fraud prevention. It is one of the most important weapons used by lenders in the continuing battle against financial crime.
National Hunter will warn a lender if its checks suggest that an application is "suspect". In turn, the lender's computer may then turn down an application, without informing the applicant precisely why, or which database was checked. The vast majority of its rejections are likely to be for entirely legitimate reasons.
But quite how many files National Hunter holds on individuals is unknown. And what if the "suspect indication" arises because of human or computer error - or because you presented the lender with facts that it cannot easily check?
"Suspect" or "inconsistent" facts, which may cause applications to be flagged as fraud risks, can include:
· Change of employer over a short period;
· Differences in spelling of a surname, initial, or date of birth;
· Change in driving licence number or a variation in other identification documentation;
· The same mobile phone number from more than one applicant;
· A substantial change in stated salary over a short period;
· Income which is difficult or impossible to verify;
· Applicants using details that are apparently from a deceased person.
Barclaycard is a major user of National Hunter. "Every night, we send it almost all our card applications. Next morning, its computers send them back, either with OK or showing a potential fraud," a spokesperson says. "If it's the latter, then we might decide to contact the applicant, although that may depend on other factors."
Mortgage lenders that we spoke to said they use the standard Experian and Equifax systems first, then decide whether to lend. Only then do they contact National Hunter to check it is not potentially dishonest.
But while the system weeds out many possibly fraudulent applications, legitimate applicants could fall foul of a check for innocent reasons - you might have had a big salary increase, or simply handed over an old mobile to a member of your family. According to a recent National Hunter presentation, to be "inconsistent" there has to be "a clear discrepancy between information provided by the consumer and information found, or not able to be found or verified elsewhere".
So the information you provide could be true, but it will be treated as potentially fraudulent if National Hunter cannot find enough information to check what you say. But if you question the rejection, banks will generally send a standard letter pointing you to one or more of the three credit agencies.
You won't be told about National Hunter - although you have a right under the Data Protection Act to demand a "subject access request" requiring a company to reveal what it holds on you.
The difficulty is, very few know about National Hunter's existence, let alone what it does. Managing director Tracy Wingrove told Guardian Money: "Any member of the public who wishes to obtain details of information we hold about themselves as individuals can request them under Section 7 of the Data Protection Act."
But she agrees that "sometimes it is not that easy to know about us".
She adds: "Our members are required to include certain key elements within the declaration/fair processing notices section of their application forms. The wording should indicate that applicants can find out which fraud prevention agencies are used and the method by which they can find this out.
"Our members must ensure that this information is made readily available to the applicant and preferably by means of a dedicated telephone contact number. If you ask your bank, it has to tell you about our existence."
Wingrove says banks should not turn someone down simply on the basis of one of its alerts. "Our rules say members can't make automated decisions. We would be concerned if banks did that."
The information commissioner, responsible for data protection issues, has expressed "strong views" on rejecting applications on fraud suspicion grounds alone, realising that no database is 100% foolproof.
Firms involved with fighting fraud recognise there is a clash between those who believe visibility harms fraud prevention and those who believe better knowledge of what can happen to a false application is a deterrent to potential fraudsters.
Wingrove accepts that National Hunter could be more visible. "We are providing a service to cut back on fraud and on identity theft. But we are happy to take Guardian Money's comments and concerns on board, and to address the issue of our low profile. We are moving to reveal more of our decision making over the next few months."
• National Hunter's website is nhunter.co.uk. Its address is N Hunter Limited, PO Box 2756, Stoke-on-Trent, ST6 9AQ. It has no telephone or email address for the public to use.
........................................................
It does not publicise its phone number or give an address beyond a PO box number belonging to a small office on a run-down street in Stoke-on-Trent.
Its name is unknown to the public. Yet it carries out around 100,000 credit checks every day, probing applications ranging from mortgages to car loans and store cards. Ask a bank or finance company why you've been rejected, and you will probably be told to contact one, or all, of the credit reference agencies - Callcredit, Equifax, and Experian - to see what they have on you. Send them £2 and you'll get a copy of your file by return.
Now Guardian Money can reveal there's a fourth agency, called "National Hunter", whose approval - or otherwise - can make or break an application. But, unlike the others, you won't find out the information it holds on you for £2, or be invited to apply online to check your data. Instead, National Hunter charges £10, the maximum allowed under the Data Protection Act.
Last year, 5m applications for credit were turned down across the industry, but how many were as a result of National Hunter is unknown. And, until now, the organisation's extremely low profile has meant that few individuals rejected for credit will have thought to check with National Hunter.
It was set up by a group of banks in 1993, but is now co-owned by 60 banks, building societies and specialist lenders. Its official headquarters are in Stoke-on-Trent though little of what it does takes place in the building. Although it's owned by the banks, National Hunter is managed and operated on a day-to-day basis by Experian, the giant of the credit agencies, based in Nottingham.
It does not assess creditworthiness in the same way as the other agencies - its sole purpose is fraud prevention. It is one of the most important weapons used by lenders in the continuing battle against financial crime.
National Hunter will warn a lender if its checks suggest that an application is "suspect". In turn, the lender's computer may then turn down an application, without informing the applicant precisely why, or which database was checked. The vast majority of its rejections are likely to be for entirely legitimate reasons.
But quite how many files National Hunter holds on individuals is unknown. And what if the "suspect indication" arises because of human or computer error - or because you presented the lender with facts that it cannot easily check?
"Suspect" or "inconsistent" facts, which may cause applications to be flagged as fraud risks, can include:
· Change of employer over a short period;
· Differences in spelling of a surname, initial, or date of birth;
· Change in driving licence number or a variation in other identification documentation;
· The same mobile phone number from more than one applicant;
· A substantial change in stated salary over a short period;
· Income which is difficult or impossible to verify;
· Applicants using details that are apparently from a deceased person.
Barclaycard is a major user of National Hunter. "Every night, we send it almost all our card applications. Next morning, its computers send them back, either with OK or showing a potential fraud," a spokesperson says. "If it's the latter, then we might decide to contact the applicant, although that may depend on other factors."
Mortgage lenders that we spoke to said they use the standard Experian and Equifax systems first, then decide whether to lend. Only then do they contact National Hunter to check it is not potentially dishonest.
But while the system weeds out many possibly fraudulent applications, legitimate applicants could fall foul of a check for innocent reasons - you might have had a big salary increase, or simply handed over an old mobile to a member of your family. According to a recent National Hunter presentation, to be "inconsistent" there has to be "a clear discrepancy between information provided by the consumer and information found, or not able to be found or verified elsewhere".
So the information you provide could be true, but it will be treated as potentially fraudulent if National Hunter cannot find enough information to check what you say. But if you question the rejection, banks will generally send a standard letter pointing you to one or more of the three credit agencies.
You won't be told about National Hunter - although you have a right under the Data Protection Act to demand a "subject access request" requiring a company to reveal what it holds on you.
The difficulty is, very few know about National Hunter's existence, let alone what it does. Managing director Tracy Wingrove told Guardian Money: "Any member of the public who wishes to obtain details of information we hold about themselves as individuals can request them under Section 7 of the Data Protection Act."
But she agrees that "sometimes it is not that easy to know about us".
She adds: "Our members are required to include certain key elements within the declaration/fair processing notices section of their application forms. The wording should indicate that applicants can find out which fraud prevention agencies are used and the method by which they can find this out.
"Our members must ensure that this information is made readily available to the applicant and preferably by means of a dedicated telephone contact number. If you ask your bank, it has to tell you about our existence."
Wingrove says banks should not turn someone down simply on the basis of one of its alerts. "Our rules say members can't make automated decisions. We would be concerned if banks did that."
The information commissioner, responsible for data protection issues, has expressed "strong views" on rejecting applications on fraud suspicion grounds alone, realising that no database is 100% foolproof.
Firms involved with fighting fraud recognise there is a clash between those who believe visibility harms fraud prevention and those who believe better knowledge of what can happen to a false application is a deterrent to potential fraudsters.
Wingrove accepts that National Hunter could be more visible. "We are providing a service to cut back on fraud and on identity theft. But we are happy to take Guardian Money's comments and concerns on board, and to address the issue of our low profile. We are moving to reveal more of our decision making over the next few months."
• National Hunter's website is nhunter.co.uk. Its address is N Hunter Limited, PO Box 2756, Stoke-on-Trent, ST6 9AQ. It has no telephone or email address for the public to use.
Senior Directors & Inflated Academic Credentials
From the WSJ: Inflated Credentials Surface in Executive Suite
Chris MacDonald, Ph.D - Business Ethics St Mary's University Canada
Inflated academic credentials in the nation's executive suites may be more common than generally thought.A survey of 358 senior executives and directors at 53 publicly traded companies has turned up at least seven instances of claims that individuals had academic degrees they don't have. In some cases, the slip-ups don't appear to have been intentional, and may have been caused by misunderstandings.Among the executives whose credentials don't check out: Dennis Workman, chief technical officer at Trimble Navigation Ltd., a big maker of global-positioning-system devices; and James DeHoniesto, until Wednesday the chief information officer at Cabot Microelectronics Corp., a supplier of chemicals and pads used to polish microchips.The details are not exactly eye-popping. A few execs said they completed degrees they only started, one said he got a Bachelor's degree when all he really got is an Associate's degree. But still. Their information was inaccurate, and that's bad. It's dishonest (though the WSJ acknowledges that some cases might best be chalked up to misunderstandings) and it sets a lousy example for people lower down the corporate ladder.Perhaps this story speaks some combination of the following things:
People's general willingness to exaggerate on their CV's. (Note that it's not a scientific survey, and only 1.9% of execs had exaggerated.)
The willingness of people at the executive level to exaggerate on their CV's.
The willingness to exaggerate on education in particular. Is that a sign that education matters ("It matters enough to lie about!") or a sign that it's held in low esteem ("Oh, it's just a college degree!")
............................................
We have to agree with the professor. Our experience at Powerchex also indicates that academic qualifications are frequently falsified. What is interesting is that applicants do not consider this to be a major "faux pas", and are usually very surprised when an offer is withdrawn.
Chris MacDonald, Ph.D - Business Ethics St Mary's University Canada
Inflated academic credentials in the nation's executive suites may be more common than generally thought.A survey of 358 senior executives and directors at 53 publicly traded companies has turned up at least seven instances of claims that individuals had academic degrees they don't have. In some cases, the slip-ups don't appear to have been intentional, and may have been caused by misunderstandings.Among the executives whose credentials don't check out: Dennis Workman, chief technical officer at Trimble Navigation Ltd., a big maker of global-positioning-system devices; and James DeHoniesto, until Wednesday the chief information officer at Cabot Microelectronics Corp., a supplier of chemicals and pads used to polish microchips.The details are not exactly eye-popping. A few execs said they completed degrees they only started, one said he got a Bachelor's degree when all he really got is an Associate's degree. But still. Their information was inaccurate, and that's bad. It's dishonest (though the WSJ acknowledges that some cases might best be chalked up to misunderstandings) and it sets a lousy example for people lower down the corporate ladder.Perhaps this story speaks some combination of the following things:
People's general willingness to exaggerate on their CV's. (Note that it's not a scientific survey, and only 1.9% of execs had exaggerated.)
The willingness of people at the executive level to exaggerate on their CV's.
The willingness to exaggerate on education in particular. Is that a sign that education matters ("It matters enough to lie about!") or a sign that it's held in low esteem ("Oh, it's just a college degree!")
............................................
We have to agree with the professor. Our experience at Powerchex also indicates that academic qualifications are frequently falsified. What is interesting is that applicants do not consider this to be a major "faux pas", and are usually very surprised when an offer is withdrawn.
Prepare for more information access requests
Compliance firm Shoosmiths raises awareness on the possibility of an increase in Subject Access Requests (see article below):
Companies should be prepared for an increase in the use of subject access requests (SARs) by individuals affected by the economic downturn.
This should not present a problem as long as businesses follow basic rules for identifying and dealing with the requests.
Individual employees facing redundancy or disciplinary action, or debtors being chased for repayment, are increasingly seeking to use their rights under the Data Protection Act 1998 to request the personal information held about them by their employers.
Often, the request will be deliberately broadly framed to cause maximum inconvenience, and may cover information considered by the business to be commercially sensitive, contain information about other individuals, or cover legal advice that has been obtained.
Fortunately for businesses, data protection legislation contains a number of exemptions from disclosure, which balance the rights of the individual against the interests of the business.
Nevertheless, businesses need to respond formally to any subject access request within the permitted time frame. To avoid the SAR gaining its own momentum, steps should be taken early on to clarify and contain the scope of the request, and identify the location of information that needs to be disclosed.
The fact that a business may be in litigation or potential litigation with an individual does not relieve that business from its obligations to comply with a valid SAR.
The individual is not required to give a reason for seeking the information, and, indeed, the individual’s motive for making the request has no bearing on the business’ obligations. Where litigation has been commenced care needs to be taken not to disclose documents that are subject to legal privilege and which are exempt from disclosure.
Golden rules
appoint someone within the organisation responsible for responding to SARs, and train staff to recognise a SAR
the response from the business must be prompt, and in any event within 40 days of the date on which a SAR was received
establish quickly if it is a valid SAR if the scope of the request is unclear, or if the fee is missing write back promptly, and do not wait until the deadline for a response
check that the information requested relates to the individual making the request, and that the request is genuine (seek further verification if in doubt)
create a process for dealing with retrieval of information in response to a SAR that allows a full response within the time allowed
Where a SAR is made by a representative on behalf of an individual, businesses should satisfy themselves that the representative is indeed authorised to make the SAR. If in doubt, documentary proof of such authorisation should be sought.
An analysis of the exemptions from disclosure available to a business in response to a SAR is outside the scope of this note. However, be aware that they broadly cover:
information which includes other people’s personal information
confidential references given by the business
information covered by legal profession privilege
management forecast information
information relevant to negotiation with the requester
information relevant to crime prevention and detection
..........................
At Powerchex we often receive calls from applicants who have either been rejected or who are curious to see what their referees have to say about them. We aim to comply with all formal SARs requests that we receive in a timely manner, however from our experience most applicants lose interest after a few days and rarely follow up with a written request. As the economic outlook deteriorates we are preparing for more formal requests and we are urging HR departments to do likewise and establish a formal process that everyone is aware of.
Companies should be prepared for an increase in the use of subject access requests (SARs) by individuals affected by the economic downturn.
This should not present a problem as long as businesses follow basic rules for identifying and dealing with the requests.
Individual employees facing redundancy or disciplinary action, or debtors being chased for repayment, are increasingly seeking to use their rights under the Data Protection Act 1998 to request the personal information held about them by their employers.
Often, the request will be deliberately broadly framed to cause maximum inconvenience, and may cover information considered by the business to be commercially sensitive, contain information about other individuals, or cover legal advice that has been obtained.
Fortunately for businesses, data protection legislation contains a number of exemptions from disclosure, which balance the rights of the individual against the interests of the business.
Nevertheless, businesses need to respond formally to any subject access request within the permitted time frame. To avoid the SAR gaining its own momentum, steps should be taken early on to clarify and contain the scope of the request, and identify the location of information that needs to be disclosed.
The fact that a business may be in litigation or potential litigation with an individual does not relieve that business from its obligations to comply with a valid SAR.
The individual is not required to give a reason for seeking the information, and, indeed, the individual’s motive for making the request has no bearing on the business’ obligations. Where litigation has been commenced care needs to be taken not to disclose documents that are subject to legal privilege and which are exempt from disclosure.
Golden rules
appoint someone within the organisation responsible for responding to SARs, and train staff to recognise a SAR
the response from the business must be prompt, and in any event within 40 days of the date on which a SAR was received
establish quickly if it is a valid SAR if the scope of the request is unclear, or if the fee is missing write back promptly, and do not wait until the deadline for a response
check that the information requested relates to the individual making the request, and that the request is genuine (seek further verification if in doubt)
create a process for dealing with retrieval of information in response to a SAR that allows a full response within the time allowed
Where a SAR is made by a representative on behalf of an individual, businesses should satisfy themselves that the representative is indeed authorised to make the SAR. If in doubt, documentary proof of such authorisation should be sought.
An analysis of the exemptions from disclosure available to a business in response to a SAR is outside the scope of this note. However, be aware that they broadly cover:
information which includes other people’s personal information
confidential references given by the business
information covered by legal profession privilege
management forecast information
information relevant to negotiation with the requester
information relevant to crime prevention and detection
..........................
At Powerchex we often receive calls from applicants who have either been rejected or who are curious to see what their referees have to say about them. We aim to comply with all formal SARs requests that we receive in a timely manner, however from our experience most applicants lose interest after a few days and rarely follow up with a written request. As the economic outlook deteriorates we are preparing for more formal requests and we are urging HR departments to do likewise and establish a formal process that everyone is aware of.
SAFER
Recruiter Magazine
Paul Wilson, who appears in, writes and produces the BBC Three TV programme “The Real Hustle”, kicked off the official launch on Tuesday of the Recruitment Industry’s Counter-Fraud Forum with sage counsel: “A con only works if the market doesn’t know what’s happening.”
Recruiters and the Metropolitan Police have joined forces to alert employers, their fellow recruiters and jobseekers to fraud and other criminal activities taking place within the recruitment marketplace. Founder members include Adecco, executivesontheweb.com, fish4jobs, Guardian Jobs, Hays, Impellam, Jobsite, Kelly Services, Monster, Reed and Totaljobs, together with the Recruitment and Employment Confederation.
“It is clear that the key to combating and keeping one step ahead of the ever-evolving nature of fraud is by working together in partnership,” said Nigel Mawer, Detective Chief Superintendent of the Met’s Economic and Specialist Crime Command. “The best protected organisations and individuals are those who recognise the threat and share best practice.”
The forum has set up a dedicated, publicly accessible website, to raise awareness and to offer impartial advice: http://www.safer-jobs.com/
..................................
Recent fraud cases have included information stolen by fraudster from legitimate sites where applicants have been uploading their CVs. When applicants are uploading their CVs they should ensure that the site is secure and can only be accessed by authorised individuals. If in doubt, applicants should specify to the recruiting organisation how their data should be handled. Organisations that solicit CVs over the internet, have to also treat this personal information with respect and ensure that it remains confidential and secure.
Paul Wilson, who appears in, writes and produces the BBC Three TV programme “The Real Hustle”, kicked off the official launch on Tuesday of the Recruitment Industry’s Counter-Fraud Forum with sage counsel: “A con only works if the market doesn’t know what’s happening.”
Recruiters and the Metropolitan Police have joined forces to alert employers, their fellow recruiters and jobseekers to fraud and other criminal activities taking place within the recruitment marketplace. Founder members include Adecco, executivesontheweb.com, fish4jobs, Guardian Jobs, Hays, Impellam, Jobsite, Kelly Services, Monster, Reed and Totaljobs, together with the Recruitment and Employment Confederation.
“It is clear that the key to combating and keeping one step ahead of the ever-evolving nature of fraud is by working together in partnership,” said Nigel Mawer, Detective Chief Superintendent of the Met’s Economic and Specialist Crime Command. “The best protected organisations and individuals are those who recognise the threat and share best practice.”
The forum has set up a dedicated, publicly accessible website, to raise awareness and to offer impartial advice: http://www.safer-jobs.com/
..................................
Recent fraud cases have included information stolen by fraudster from legitimate sites where applicants have been uploading their CVs. When applicants are uploading their CVs they should ensure that the site is secure and can only be accessed by authorised individuals. If in doubt, applicants should specify to the recruiting organisation how their data should be handled. Organisations that solicit CVs over the internet, have to also treat this personal information with respect and ensure that it remains confidential and secure.
Data Security and Pre-employment Screening
BARELY a day passes, it seems, without a new headline appearing about how our personal information has been lost from yet another database. This month, the Information Commissioner, Richard Thomas, revealed that the number of reported data breaches in the UK has soared to 277 since HMRC lost 25 million child benefit records nearly a year ago. "Information can be a toxic liability," he commented.
Such data losses are bad news on many fronts. Not just for us, when it's our personal information that is lost or misplaced, but because it also undermines trust in modern technology (Jerry Fishenden reporting for the Scotsman).
...............................................................
In terms of pre-employment screening firms need to understand the security pitfalls when they transmit personal data across the internet. Such data has to traced both in terms of the form of transmisssion but also in terms of the security at the recipient's site. Applicants who are asked to fill out forms on line have to question the security of the website prior to disclosing their personal information. Using encrypted emails or password protected PDFs is a more secure way to transmit this type of information.
.................................................................
Read more:
http://www.out-law.com/page-9540
https://www.eversheds.com/uk/home/articles/index.page?ArticleID=templatedataEvershedsarticlesdataenLocal_governmentLocal_Government_briefing_note_44_2008
Such data losses are bad news on many fronts. Not just for us, when it's our personal information that is lost or misplaced, but because it also undermines trust in modern technology (Jerry Fishenden reporting for the Scotsman).
...............................................................
In terms of pre-employment screening firms need to understand the security pitfalls when they transmit personal data across the internet. Such data has to traced both in terms of the form of transmisssion but also in terms of the security at the recipient's site. Applicants who are asked to fill out forms on line have to question the security of the website prior to disclosing their personal information. Using encrypted emails or password protected PDFs is a more secure way to transmit this type of information.
.................................................................
Read more:
http://www.out-law.com/page-9540
https://www.eversheds.com/uk/home/articles/index.page?ArticleID=templatedataEvershedsarticlesdataenLocal_governmentLocal_Government_briefing_note_44_2008
An extensive membership list of the far-right British National Party (BNP) has been stolen and leaked online
Yahoo News
The BNP has confirmed that the list from November 2007 has been leaked, but said that some addresses have been added since then.
The list contains 10,000-12,000 names, addresses, phone numbers, email adresses and additional information, and was posted on a Google blog for a short while before being taken down.
"Detailed analysis by our membership department proves conclusively that the core list dates from between 30 November and 2 December 2007," said BNP leader Nick Griffin.
"We have already sent formal demands to the web hosts to remove the list, pointing out to them that the publication of this year-old list constitutes contempt of court because a court order preventing its release or use was made and consented to by the group of disgraced former employees who first misappropriated it."
Analysis of the members, all of whom have to be 'indigenous Caucasians' under party rules, has reportedly found 16 serving and more than 50 former soldiers, several police officers (who are barred from joining by law) and overseas members in California, Ireland and Saudi Arabia.
The publication of the names has sent the membership into a panic, according to postings on the NorthWestNationalists blog.
"I've just had a call, I'm on it too," wrote one anonymous poster. "I want my f****** member money back, like has been mentioned here, I could lose my f****** job. I'm bloody angry."
A serving soldier also expressed disbelief and called for Nick Griffin to stand down. "Me too, I'm on the list, I could be chucked out of the army. What is going on? Piss up in a brewery comes to mind. I want some answers, NOW," he wrote.
The leak is almost certainly the work of an insider, and highlights the dangers of not protecting important data from prying employees. While there are numerous technologies to do this, very few organisations implement them.
The BNP has confirmed that the list from November 2007 has been leaked, but said that some addresses have been added since then.
The list contains 10,000-12,000 names, addresses, phone numbers, email adresses and additional information, and was posted on a Google blog for a short while before being taken down.
"Detailed analysis by our membership department proves conclusively that the core list dates from between 30 November and 2 December 2007," said BNP leader Nick Griffin.
"We have already sent formal demands to the web hosts to remove the list, pointing out to them that the publication of this year-old list constitutes contempt of court because a court order preventing its release or use was made and consented to by the group of disgraced former employees who first misappropriated it."
Analysis of the members, all of whom have to be 'indigenous Caucasians' under party rules, has reportedly found 16 serving and more than 50 former soldiers, several police officers (who are barred from joining by law) and overseas members in California, Ireland and Saudi Arabia.
The publication of the names has sent the membership into a panic, according to postings on the NorthWestNationalists blog.
"I've just had a call, I'm on it too," wrote one anonymous poster. "I want my f****** member money back, like has been mentioned here, I could lose my f****** job. I'm bloody angry."
A serving soldier also expressed disbelief and called for Nick Griffin to stand down. "Me too, I'm on the list, I could be chucked out of the army. What is going on? Piss up in a brewery comes to mind. I want some answers, NOW," he wrote.
The leak is almost certainly the work of an insider, and highlights the dangers of not protecting important data from prying employees. While there are numerous technologies to do this, very few organisations implement them.
Friday, 14 November 2008
Insider Fraud - Should you be worried? by Arjun Medhi, Staff Fraud Adviser, CIFAS
While it goes without saying that most staff in any organisation are honest and trustworthy, there is a growing awareness and concern about the very real threat posed by the few who act dishonestly to defraud their employer. Fraud in the workplace can lead to an organisation experiencing a substantial internal impact, financial losses and unquantifiable damage to reputation. Most importantly, insider fraud is increasingly one of the biggest concerns for employers: Deloitte’s 2007 Global Financial Services Security Survey found that 91% of the respondents (from a range of 169 major global financial institutions) were concerned about the risks arising internally.
Insider fraud can take many forms: from deception through to stealing customer data and selling it on to organised criminals. Even at recruitment stage, fraud can be a problem, with lies included in application forms or on CVs.
click below for the full article
http://www.powerchex.co.uk/articles/detail/insider-fraud-should-you-be-worried/
While it goes without saying that most staff in any organisation are honest and trustworthy, there is a growing awareness and concern about the very real threat posed by the few who act dishonestly to defraud their employer. Fraud in the workplace can lead to an organisation experiencing a substantial internal impact, financial losses and unquantifiable damage to reputation. Most importantly, insider fraud is increasingly one of the biggest concerns for employers: Deloitte’s 2007 Global Financial Services Security Survey found that 91% of the respondents (from a range of 169 major global financial institutions) were concerned about the risks arising internally.
Insider fraud can take many forms: from deception through to stealing customer data and selling it on to organised criminals. Even at recruitment stage, fraud can be a problem, with lies included in application forms or on CVs.
click below for the full article
http://www.powerchex.co.uk/articles/detail/insider-fraud-should-you-be-worried/
The credit crunch and bank bailouts are forcing an "about turn" by the FSA from principles to rule‐based regulation.
FSA chairman Lord Adair Turner warned the City that the days of soft touch regulation are over. Turner admitted that the regulator ‘had been doing supervision on the cheap’ and said banks and insurance companies would have to pay higher fees as the FSA brings its supervision teams up to scratch.
‘We are going to have to do supervision at the quality that is required to do it really well. If that means the total cost has to go up somewhat then it has to go up,’ he told the FT. "There will be more people asking more questions and getting more information than we were getting before" Turner said. "There is no doubt the touch will be heavier. We have to make sure it is intelligent and focused on where the risks really are."
As part of a thematic review on financial crime, the FSA is currently in the process of visiting some 200 firms, both large and small, to assess the adequacy of their procedures. They expect to see comprehensive crime prevention procedures in place.
Findings from previous visits has showed that many firms allow new recruits to access customer data before vetting has been completed and it is common practice for temporary staff to receive less vigorous vetting than permanently employed colleagues.
Click below for the full press release:
http://www.powerchex.co.uk/interface/files/news/regulatory-tsunami.pdf
FSA chairman Lord Adair Turner warned the City that the days of soft touch regulation are over. Turner admitted that the regulator ‘had been doing supervision on the cheap’ and said banks and insurance companies would have to pay higher fees as the FSA brings its supervision teams up to scratch.
‘We are going to have to do supervision at the quality that is required to do it really well. If that means the total cost has to go up somewhat then it has to go up,’ he told the FT. "There will be more people asking more questions and getting more information than we were getting before" Turner said. "There is no doubt the touch will be heavier. We have to make sure it is intelligent and focused on where the risks really are."
As part of a thematic review on financial crime, the FSA is currently in the process of visiting some 200 firms, both large and small, to assess the adequacy of their procedures. They expect to see comprehensive crime prevention procedures in place.
Findings from previous visits has showed that many firms allow new recruits to access customer data before vetting has been completed and it is common practice for temporary staff to receive less vigorous vetting than permanently employed colleagues.
Click below for the full press release:
http://www.powerchex.co.uk/interface/files/news/regulatory-tsunami.pdf
Tuesday, 11 November 2008
DATA SECURITY IN FINANCIAL SERVICES
The FSA has published one of their most comprehensive and easy to read consultations on Data Security. A topical subject, it remains widely misunderstood and is generally applied badly. Recent blunders by the Home Office and other organisations have brought it to the forefront and organisations far an wide are encouranged to pay attention.
http://www.fsa.gov.uk/pubs/other/data_security.pdf
The FSA has published one of their most comprehensive and easy to read consultations on Data Security. A topical subject, it remains widely misunderstood and is generally applied badly. Recent blunders by the Home Office and other organisations have brought it to the forefront and organisations far an wide are encouranged to pay attention.
http://www.fsa.gov.uk/pubs/other/data_security.pdf
Illegal checks jeopardising jobs
Bosses in England and Wales are making illegal criminal record checks on staff, learning about spent convictions that should not be disclosed. Sensitive work, such as with children or vulnerable adults, is eligible for Criminal Records Bureau (CRB) checks.
But BBC Radio 4's Face the Facts has found requests to CRB for jobs such as train driver, gardener and bricklayer.
http://news.bbc.co.uk/1/hi/uk/7548467.stm
http://www.bbc.co.uk/radio4/facethefacts/transcript_20080808.shtml
Bosses in England and Wales are making illegal criminal record checks on staff, learning about spent convictions that should not be disclosed. Sensitive work, such as with children or vulnerable adults, is eligible for Criminal Records Bureau (CRB) checks.
But BBC Radio 4's Face the Facts has found requests to CRB for jobs such as train driver, gardener and bricklayer.
http://news.bbc.co.uk/1/hi/uk/7548467.stm
http://www.bbc.co.uk/radio4/facethefacts/transcript_20080808.shtml
Who is cutting jobs in financial services?
Research by Powerchex showed that Investment Banks made the biggest cutback with 52% less jobs being offered in September compared to 6 months ago. Uncertainty about the world economy heightened with the collapse of U.S investment bank Lehman Brothers, meaning that investment banks are reluctant to hire with the fear they may be the next to falter.
http://www.powerchex.co.uk/interface/files/news/investment-banks-make-52-percent-less-employment-offers.pdf
Research by Powerchex showed that Investment Banks made the biggest cutback with 52% less jobs being offered in September compared to 6 months ago. Uncertainty about the world economy heightened with the collapse of U.S investment bank Lehman Brothers, meaning that investment banks are reluctant to hire with the fear they may be the next to falter.
http://www.powerchex.co.uk/interface/files/news/investment-banks-make-52-percent-less-employment-offers.pdf
On the lighter side of referencing...
FIRMS NOT ALLOWED TO ASK WHY YOUR CV IS FILLED WITH LIES
POTENTIAL employers are to be barred from asking interviewees why their CVs are filled with rubbish from beginning to end.
'So, did you enjoy being an astronaut?'
A recent CBI study suggested that if workers were forced to tell the truth on their resumés, Britain's employment rate would drop to roughly zero.The government has now expanded the list of 'no-go' interview questions, allowing candidates to portray themselves as hard-working and intelligent, rather than lazy fantasists who spend all day playing Facebook Scrabble.
John Hutton, the secretary of state for business, said: "The last thing we need is to lift up this particular rock.
"Far better to carry on believing that everything is true and that everyone is just great." Mr Hutton added: "When I look at my own CV it says that I am a good team player, I use my initiative and that I have a triple first in maths, sculpture and heart surgery from Yale. Bollocks, the lot of it. "I'm actually profoundly under-qualified and unable to dress myself, but do you want to be the business secretary? Let me assure you, it's absolutely f***** tedious."
http://www.thedailymash.co.uk/news/business/firms-not-allowed-to-ask-why-your-cv-is-filled-with-lies-20080115659/
FIRMS NOT ALLOWED TO ASK WHY YOUR CV IS FILLED WITH LIES
POTENTIAL employers are to be barred from asking interviewees why their CVs are filled with rubbish from beginning to end.
'So, did you enjoy being an astronaut?'
A recent CBI study suggested that if workers were forced to tell the truth on their resumés, Britain's employment rate would drop to roughly zero.The government has now expanded the list of 'no-go' interview questions, allowing candidates to portray themselves as hard-working and intelligent, rather than lazy fantasists who spend all day playing Facebook Scrabble.
John Hutton, the secretary of state for business, said: "The last thing we need is to lift up this particular rock.
"Far better to carry on believing that everything is true and that everyone is just great." Mr Hutton added: "When I look at my own CV it says that I am a good team player, I use my initiative and that I have a triple first in maths, sculpture and heart surgery from Yale. Bollocks, the lot of it. "I'm actually profoundly under-qualified and unable to dress myself, but do you want to be the business secretary? Let me assure you, it's absolutely f***** tedious."
http://www.thedailymash.co.uk/news/business/firms-not-allowed-to-ask-why-your-cv-is-filled-with-lies-20080115659/
CPNI - Pre-employment screening best practices
The centre for the protection of National Infrastructure has developed a very detailed document on best practices in the provision of background checks and other pre-employment screening practices. The link below focuses on the verification of identity documents and what to look out for.
http://www.cpni.gov.uk/Docs/Document_verification_guidance_-_July_2007.pdf
The centre has also produced an excellent guide on personel security.
http://www.cpni.gov.uk/Docs/Pers_Sec_TCM_v2.pdf
The centre for the protection of National Infrastructure has developed a very detailed document on best practices in the provision of background checks and other pre-employment screening practices. The link below focuses on the verification of identity documents and what to look out for.
http://www.cpni.gov.uk/Docs/Document_verification_guidance_-_July_2007.pdf
The centre has also produced an excellent guide on personel security.
http://www.cpni.gov.uk/Docs/Pers_Sec_TCM_v2.pdf
Redundancies - References
I am sure that you are all aware of the increased number of redundancies especially in financial services firms. Here at Powerchex we have seen a significant increase in the number of bad references that we have been receiving. Several of the references state that the employee was dismissed, although a reason is seldomly disclosed. Employment references and the results of pre-employment screening checks certainly provide an interesting view of the state of the employment market. More on this as the crisis unfolds.
http://www.lawpack.co.uk/Knowledge/Business/HumanResources/article864.asp
I am sure that you are all aware of the increased number of redundancies especially in financial services firms. Here at Powerchex we have seen a significant increase in the number of bad references that we have been receiving. Several of the references state that the employee was dismissed, although a reason is seldomly disclosed. Employment references and the results of pre-employment screening checks certainly provide an interesting view of the state of the employment market. More on this as the crisis unfolds.
http://www.lawpack.co.uk/Knowledge/Business/HumanResources/article864.asp
Data Protection, Subject Access Requests and Employment References
Data Protection, subject access requests and employment references are often the topic of conversation in human resources circles. As a result, I am listing a few links which you may find useful when you are deciding how to respond to an inquiry:
http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/references_v1.0_final.pdf
You may also find the following articles of interest:
http://www.personneltoday.com/articles/2007/01/29/39053/information-commissioner-orders-tinies-nanny-agency-to-disclose-job.html
http://www.personneltoday.com/articles/2003/06/01/19189/courts-rule-against-data-access-requests.html
http://www.personneltoday.com/articles/2008/07/15/45177/how-to-spot-lying-on-application-forms.html
Data Protection, subject access requests and employment references are often the topic of conversation in human resources circles. As a result, I am listing a few links which you may find useful when you are deciding how to respond to an inquiry:
http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/references_v1.0_final.pdf
You may also find the following articles of interest:
http://www.personneltoday.com/articles/2007/01/29/39053/information-commissioner-orders-tinies-nanny-agency-to-disclose-job.html
http://www.personneltoday.com/articles/2003/06/01/19189/courts-rule-against-data-access-requests.html
http://www.personneltoday.com/articles/2008/07/15/45177/how-to-spot-lying-on-application-forms.html
Annual Pre-employment Screening Survey
Powerchex conducts an annual pre-employment screening survey analysing the trends in terms of CV discrepances. These surveys have been widely reported in the press including the FT http://www.ft.com/cms/s/0/f5112740-56bb-11dd-8686-000077b07658.html, BBC http://news.bbc.co.uk/1/hi/education/7517918.stm, and others.
The 2008 survey, reported widely on how the ranking of the university attended, influences the amount of discrepancies on CVs
Here is the press release that accompanied the survey:
NEWS RELEASE July 18th 2008
Grads from top-ranked universities less likely to lie on CVs.
If you graduated from one of the nation’s top 20 universities, you are less likely to lie on your CV to get a good job; a recent survey shows. On the contrary, if you graduated from one of the UK’s lowest ranked schools, you are more likely to embellish your background.
The survey, which was conducted by pre-employment screening firm Powerchex, reveals that 43% of applicants from the UK’s lowest ranking universities have some form of major embellishment hidden in their application, compared to just 14% of applicants from the Top 20 rated schools.
“What this survey says is that graduates from lesser-known universities may feel they need to alter their background to compete”, says Powerchex managing director Alexandra Kelly. “There appears to be a trend that the lower ranked the university, the higher the likelihood of discrepancies on a CV”, she added.
Kai Peters, Chief Executive at Ashridge Business School agrees with Kelly: "The survey suggests that individuals with the discipline to get into good universities are proud of their performance and see no need to embellish their CVs"
The survey also revealed a link between the subject area studied at university and the frequency of falsifications. More specifically, graduates in the subjects of arts and humanities had the highest rate of discrepancies (22%) whilst maths based students tend to have the lowest (6%). Contrary to popular opinion, graduates in finance also had a low rate of falsifications (13%), second only to maths when it comes to being honest on job applications.
It is not good news for some graduates: "The survey suggests that those who pursue creative writing degrees extend fiction writing to their CVs" continues Kai Peters.
This is however good news for business schools that have placed an emphasis on ethical behaviour and integrity. Mark Zupan, Dean of the Simon Graduate School of Business at the University of Rochester (recently ranked 3rd in the world for finance by the FT) commented, “Contrary to the common-held belief that finance students are less inclined to behave ethically, these results indicate that the exact opposite may be true.”
Here is a link to the actual survey.
http://www.powerchex.co.uk/interface/files/surveys/powerchex-annual-survey-2008.pdf
Powerchex conducts an annual pre-employment screening survey analysing the trends in terms of CV discrepances. These surveys have been widely reported in the press including the FT http://www.ft.com/cms/s/0/f5112740-56bb-11dd-8686-000077b07658.html, BBC http://news.bbc.co.uk/1/hi/education/7517918.stm, and others.
The 2008 survey, reported widely on how the ranking of the university attended, influences the amount of discrepancies on CVs
Here is the press release that accompanied the survey:
NEWS RELEASE July 18th 2008
Grads from top-ranked universities less likely to lie on CVs.
If you graduated from one of the nation’s top 20 universities, you are less likely to lie on your CV to get a good job; a recent survey shows. On the contrary, if you graduated from one of the UK’s lowest ranked schools, you are more likely to embellish your background.
The survey, which was conducted by pre-employment screening firm Powerchex, reveals that 43% of applicants from the UK’s lowest ranking universities have some form of major embellishment hidden in their application, compared to just 14% of applicants from the Top 20 rated schools.
“What this survey says is that graduates from lesser-known universities may feel they need to alter their background to compete”, says Powerchex managing director Alexandra Kelly. “There appears to be a trend that the lower ranked the university, the higher the likelihood of discrepancies on a CV”, she added.
Kai Peters, Chief Executive at Ashridge Business School agrees with Kelly: "The survey suggests that individuals with the discipline to get into good universities are proud of their performance and see no need to embellish their CVs"
The survey also revealed a link between the subject area studied at university and the frequency of falsifications. More specifically, graduates in the subjects of arts and humanities had the highest rate of discrepancies (22%) whilst maths based students tend to have the lowest (6%). Contrary to popular opinion, graduates in finance also had a low rate of falsifications (13%), second only to maths when it comes to being honest on job applications.
It is not good news for some graduates: "The survey suggests that those who pursue creative writing degrees extend fiction writing to their CVs" continues Kai Peters.
This is however good news for business schools that have placed an emphasis on ethical behaviour and integrity. Mark Zupan, Dean of the Simon Graduate School of Business at the University of Rochester (recently ranked 3rd in the world for finance by the FT) commented, “Contrary to the common-held belief that finance students are less inclined to behave ethically, these results indicate that the exact opposite may be true.”
Here is a link to the actual survey.
http://www.powerchex.co.uk/interface/files/surveys/powerchex-annual-survey-2008.pdf
As the MD in a company that specialises in pre-employment screening, I have often found that a great deal of information on the subject is either misunderstood or misinterpreted. I plan to use this blog as a central point of "all things pre-employment screening" and "all things referencing". This blog will obviously much more useful with input from other people with an interest and expertise on the subject, so please, contribute. There are also loads or resources on our website at www.powerchex.co.uk.
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