Why are background checks so important?
With employee-related risks like insider threats and theft on the rise, pre-employment background checks are more important than ever. Studies show that organizations are much more likely to experience insider attacks from employees than external attacks. In fact, an IBM report found that 66% of attacks against companies come from the inside.
So, what exactly constitutes a “red flag” on a background check? Red flags are indicators of potential issues that could negatively impact a company. These can range from minor inconsistencies to serious criminal offenses. The Association of Certified Fraud Examiners (ACFE) estimates that U.S. organizations lose 5% of their revenue to fraud each year. That’s a lot of money!
This article provides an overview of common red flags on background checks and offers guidance on how to address them appropriately.