Expert reveals insider fraud concerns are being exacerbated by inconsistent employee checks

ceo fraud

Analysis from Sterling has exposed a concerning level of inconsistency in background screening across the charity sector, with a lack of robust employment checks exposing many organisations to the risk of insider fraud.

Insight from the global leader in background and identity services – which included conversations with recruitment screening professionals from across multiple not-for-profit organisations – revealed that while the Charity Commission offer clear guidance around safeguarding and background checks, many of those responsible for vetting employees in the sector feel they risk operating in a silo.

Some expressed concern that they have little to no connection with other experts in this field with whom they can share challenges or discuss best practice when it comes to carrying out right to work checks and other crucial employment screening activity.

At a time when insider fraud continues to blight the charity arena, Sterling has urged screening professionals to seek out expert advice and work together to share best practise in order to reduce the risks of hiring the wrong person

Steve Smith, managing director of Sterling EMEA, commented: “The growth of insider fraud in the charity sector is concerning to say the least. Given the great work that not-for-profits do for global communities and those in need, it’s disheartening to know that there are some individuals who would take advantage of these organisations and drain vital funds.

However, it is possible to mitigate much of the risks by conducting the right checks on potential employees. Given that so many of those responsible for vetting staff in the charity arena feel as if they are working in silos, it’s perhaps no surprise that how candidates are screened is, in many instances, ad hoc or sporadic.”

“As fraudsters become more sophisticated, charities themselves also need to be armed to protect their funds, and ultimately their brand from the likes of insider fraud.

In order to help equip talent acquisition managers and background screening professionals from across the charity sector with the tools to tackle insider fraud, we are hosting a webinar with the Charity Commission on Thursday 6th June. This free session will identify the risks of insider fraud and outline the best practice approach to minimise harm.”