By Lynn H. Levy

9/11/01 Identity Theft Employee mass murders

The corporate world has changed, along with the political and environmental environments in which we now operate. Terms, such as "ground zero," "terrorist," "anthrax," "exit interviews for disgruntled employees" were certainly not common prior to 2001. Today hiring managers need to be even more aware of their new recruits, particularly at the executive level, to ensure the person they hire really is who they say they are.

According to the American Society of Industrial Security, an alarming 2% of workers surveyed admitted threatening a supervisor or co-worker in the last 24 months. Computer hacking, feuding among co-workers, external violence from relatives, friends and former employees, not to mention a possible terrorist threat, cause executives of corporations -- large and small, great worry.

A comprehensive background investigation conducted prior to hiring can often prevent hundreds of dollars being spent later building a dossier to fire the employee, not to mention the investment in executive orientation once on board.

It is unfortunate that criminals in the 21st century are sophisticated enough to con even the savviest hiring managers. Identity theft is rampant. Criminals use the system and do not care if they illegally obtain a place in the corporate world.

While in most cases, executive level candidates are free from crime, have no debt, possess an excellent driving record, and are alcohol and drug free, corporations need to know as much about them as possible before their first day on the job. An executive background check is one way to confirm the good vibes hiring managers have had during the interview process.

Step 1: Read the resume carefully and confirm the facts.

When Radio Shack Corporation President and CEO resigned in March 2006 due to questions about his résumés accuracy, the whole company's integrity was brought into question. He left the company after receiving a huge payout.

To avoid such public embarrassment, not to mention shareholder trust, employee morale and bottom line costs, fact-checking is typically conducted by the Human Resources Department or by the firm hired to conduct the search. Education, prior employment and professional references are called and notes taken relative to any information provided.

Step 2: Hire an objective firm to carefully conduct a thorough background check.

A real estate corporation hired a finance executive after conducting its own pre-employment background investigation. It interviewed her carefully and checked references on her resume. Once on board, however, the new hire began to take long absences from work and exhibit other oddities in her job performance. The company subsequently hired a private investigative firm to determine whether anything could be found as proof to fire her. It discovered the two year gap on her resume (which she had previously explained as ?time off to care for her ailing mother?) coincided with her employment at a firm from whom she had embezzled money using a prior married name. The investigative search to uncover this illegal activity only cost $600, a small price to pay before hiring someone.

Professional background investigators typically research:

• Past residences
• Criminal searches
• Social security number
• Civil records (bankruptcy, high debt to income ratio, judgments)
• Motor Vehicle records
• Academic records
• Past Employment
• Military records
• Credit report (as long as a legal release form is obtained)
• Newspapers and business journals
• Worker's Compensation indices

Costs of background checks range from under $100 to several thousands of dollars, depending on the level of employment. If the person has access to company money or vehicles, enters homes or businesses, it is essential to conduct a detailed background investigation to prevent future liability issues. Salaried executives should be well-scrutinized. Litigation costs and EEO lawsuits are only some considerations.

A comprehensive background investigation, although not fool-proof, could be one venue to prevent future aggravation and expense to the Board of Directors or executives of the firm.

ABOUT THE AUTHOR

Lynn Levy has over twenty-five years experience in the investigative field. Ms. Levy has taught many seminars relative to security, identity theft and entrepreneurship.

She has appeared on both radio and television, including the USA Channel, WABC and Fox TV. She also has been featured in the Baltimore Business Journal, the Maryland Daily Record, Baltimore Magazine and the Baltimore Jewish Times.

She has been President-elect for the Baltimore National Association of Women Business Owners (NAWBO), and is a board member of the Professional Investigator?s Alliance of Maryland . She has been named Investigator of the Year for 2004 by that association. She can be reached at www.i-investigate.com.

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