International Screening: Preventing Fraud from Abroad

This is the ninth instalment in our 10-part series on unmasking insider fraud and implementing effective risk mitigation strategies.

In our globalised economy, organisations are increasingly hiring talent from around the world. While this opens up a wealth of opportunities, it also presents unique challenges in managing the risks associated with international hires. In this post, we'll highlight the challenges organisations face when screening candidates from abroad, offer practical solutions, and emphasise the importance of comprehensive global checks to prevent fraud.

Recruiting internationally can introduce several complexities that aren't present in domestic hiring processes. These challenges include:

1. Limited Access to Records

   Different countries have varying levels of record-keeping and accessibility. In some regions, criminal records, employment histories, or educational qualifications may be difficult to verify due to:

   • Lack of Centralised Databases: Some countries don't maintain centralised records, making verification time-consuming.

   • Privacy Laws: Strict data protection regulations can limit access to personal information.

   • Political Instability: Regions experiencing unrest may have disrupted administrative services.

2. Language Barriers

   Documentation and communication in foreign languages can hinder the verification process. Translating documents accurately is essential to avoid misunderstandings.

3. Cultural Differences

   Different cultural norms can affect how information is recorded and presented. Understanding these nuances is crucial for accurate interpretation.

4. Fraudulent Documents

   The risk of counterfeit or altered documents increases with international hires. Without familiarity with foreign documentation standards, detecting forgeries becomes more challenging.

5. Time Zone Differences

   Coordinating with international institutions or references can be complicated due to time zone discrepancies, potentially delaying the hiring process.

Background: Peter Omoruyi, a convicted individual abroad, managed to secure employment working with vulnerable teenagers in the UK due to gaps in international screening. The failure to uncover his criminal history overseas exposed the organisation to significant risks and highlighted the importance of thorough global checks.

Solutions for Effective International Screening

Despite these challenges, there are effective strategies organisations can implement to mitigate risks associated with international hires.

1. Partner with Global Screening Providers

   Engage with reputable background screening companies that have international expertise. These providers offer:

   • Local Knowledge: Understanding of local laws, regulations, and processes.

   • Global Networks: Established connections with international institutions and authorities.

   • Multilingual Capabilities: Ability to handle documentation and communication in various languages.

2. Conduct Comprehensive Checks

   Implement a thorough screening process that includes:

   • International Criminal Record Checks: Verify any criminal history in all countries where the candidate has lived or worked.

   • Education Verification: Confirm educational qualifications with foreign institutions directly.

   • Employment History Verification: Contact previous employers abroad to validate work experience and performance.

   • Reference Checks: Speak with professional references who can attest to the candidate's character and capabilities.

3. Utilise Technology and Databases

   Leverage technology to access international databases and watchlists, such as:

   • Interpol Notices: Alerts on individuals wanted for criminal activities.

   • Sanctions Lists: Records of individuals under economic or legal sanctions.

   • Global Compliance Databases: Aggregated data on regulatory and compliance-related issues.

4. Verify Identity Rigorously

   Ensure the candidate's identity is authentic by:

   • Checking Passports and Visas: Validate the authenticity of travel documents.

   • Biometric Verification: Use biometric data where permissible to confirm identity.

   • Address Verification: Confirm residential addresses in previous countries of residence.

5. Understand Legal and Compliance Requirements

   Be aware of the legal considerations when conducting international checks:

   • Data Protection Laws: Comply with the data privacy regulations of both the UK and the candidate's country of origin.

   • Consent Requirements: Obtain explicit consent from candidates for international screening activities.

   • Employment Laws: Adhere to employment regulations regarding discrimination and fair hiring practices.

6. Provide Training for HR Teams

   Equip your HR professionals with the knowledge and skills to manage international screenings:

   • Legal Training: Understand international labour laws and compliance requirements.

   • Cultural Awareness: Recognise cultural differences that may impact the screening process.

   • Language Skills: Encourage proficiency in relevant languages or provide access to professional translation services.

Implementing global checks is crucial for several reasons:

1. Protecting Organisational Integrity

   Thorough screening helps maintain a trustworthy workforce, safeguarding the organisation's reputation and assets.

2. Ensuring Compliance

   Adhering to legal obligations in international hiring prevents regulatory breaches and potential penalties.

3. Mitigating Risks

   Identifying potential red flags early reduces the likelihood of fraud, misconduct, or other issues that could harm the organisation.

4. Enhancing Workplace Safety

   Ensuring that employees do not have a history of violent or unethical behaviour contributes to a safe and positive work environment.

Addressing challenges in international screening requires proactive measures:

Language Barriers

Solution: Utilise professional translation services and hire multilingual staff to accurately interpret documents and communications.

Time Zone Differences

Solution: Plan communications and requests considering time differences, and set realistic timelines for obtaining information.

Data Accessibility

Solution: Work with local authorities or partners who have access to necessary records, and stay informed about countries with restricted data access.

Cultural Sensitivities

Solution: Show respect for cultural norms and practices, and adjust approaches accordingly to build trust and facilitate cooperation.

Case Study: Strengthening Screening Processes

An international corporation faced challenges when a new hire from abroad was found to have misrepresented their qualifications and employment history. The incident led to project delays and financial losses.

In response, the company revamped its international screening process by:

• Partnering with a Global Screening Provider: Engaged a specialist firm with expertise in international checks.

• Implementing Tiered Screening Levels: Adjusted screening depth based on role risk levels.

• Enhancing Verification Methods: Introduced additional checks for education and employment history.

The result was a more robust screening process that significantly reduced the risks associated with international hires.

Advancements in technology have made international screening more efficient:

Automated Screening Platforms

Use platforms that integrate various checks into one system, streamlining the process and reducing manual effort.

Artificial Intelligence (AI) and Machine Learning

AI can help identify patterns and anomalies in data that might indicate fraud or misrepresentation.

Blockchain Verification

Emerging technologies like blockchain can provide secure and tamper-proof verification of qualifications and records.

Conclusion

As the workforce becomes increasingly global, organisations must adapt their screening processes to address the challenges of international hires. By implementing comprehensive global checks, partnering with experts, and leveraging technology, businesses can mitigate risks and prevent fraud from abroad.

HR professionals and compliance officers play a vital role in this effort, ensuring that international hires contribute positively to the organisation without compromising safety or integrity.

In our final post of this series, we'll summarise the key takeaways and provide a roadmap for implementing effective fraud prevention strategies in your organisation.

Stay tuned for Part 10: "Implementing an Effective Fraud Prevention Roadmap" coming soon.