August 21 2007 - The Nation's financial institutions may be exposing themselves to potential fraud
when hiring temporary workers; a recent survey shows.
The survey, which was conducted by City pre-employment screening firm
Powerchex, reveals that 89% of undisclosed criminal records were found on the
CVs of temporary employees.
As the City relies more on temporary staff to deliver its back office and
administrative work, the findings are worrying. "Most financial firms have become
good at screening their top employees," said Powerchex managing director
Alexandra Kelly.
"But an army of unchecked workers are potentially inside the nation's banks and
financial institutions. And as our findings show, potential fraudsters are more
likely to come in as temps."
The UK's financial institutions increasingly rely on temporary workers. It is
estimated by the Office of National Statistics (ONS) in March 2007 that up to
176,000 contract personnel work in the financial services.(1) This could cover back
office, support and most worryingly, IT staff.
"Computer workers pose the biggest threat," said Kelly. "Their backgrounds
should be checked through the same process as anyone else who works in a
bank."
Recent high profile cases of misplaced or stolen personal data have increased
the focus on financial companies to take all the necessary steps to prevent fraud.
The Financial Services Authority (FSA) states, "there is evidence that organised
crime groups deliberately target firms to place staff to commit financial crime,
particularly identity theft. Firms must vet staff carefully before confirming their
appointment."(2)
1 Labour Force Survey, ONS
2 Financial Crime Sector Report, The Financial Services Authority
About Powerchex
Powerchex is the UK's premier pre-employment screening firm for financial institutions.
Based in the City of London, Powerchex checks the background, employment history,
criminal records and professional qualifications of applicants on behalf of financial
institutions. It sets the industry benchmark of 5 days for a background check.
.
For more information please contact:
Alexandra Kelly
0207 709 2058
akelly@powerchex.co.uk
Contact
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