Prevent Embezzlement With Credit Checks

Prevent Embezzlement With Credit Checks

In recent years, an increase in embezzlement cases rocked the business world and robbed many companies of vital revenue. According to CNBC, US companies lose approximately $50 billion a year from workplace crime. As a result, many business owners rightfully harbor suspicions about where their hard-earned money ends up.

Knowing your employees’ financial history protects you and reduces your liability from employee financial theft. Simply running credit checks can prevent embezzlement.

When an employer runs a credit check, they they receive a modified credit report showing debt and payment history, not the employee’s credit score. The type of report avoids violating equal employment regulations. However, it does show the potential hire’s payment record, whatever debts they have and their available credit — helping employers to spot the warning signs of a potential embezzler. All credit checks run by Grand Slam Investigations are compliant to the Fair Credit Reporting Act.

Signs of Fraud in Credit Reports

Employers wary of fraud often search for signs of financial distress in their potential hire’s credit history. Financial distress may indicate a risk of fraud or theft. Late payments and excessive debt signal a person’s money problems. The blemishes found on their credit not only hint at a potential for theft, but may also prove that they are not fit to handle the company’s money.

These are not the only signs that an employer should look for in the hiring process. claims that more than a third of job applicants confess to lying on their resumes. Matching up their credit report with their employment history can spot holes in a resume. A resume littered with false information presents additional warning signs of an embezzler. If the potential hire shows salary information from their previous job, that does not match up with the  amount of debt they carried at that time, they may be lying.

For more information about running credit checks to prevent embezzlement from the experts at Grand Slam Investigations, please contact us here or call us directly at 231.359.1555.