Pre-Employment Screening as the First Step to Fraud Prevention
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Transcript of Pre-Employment Screening as the First Step to Fraud Prevention
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Pre-Employment ScreeningBy Kelvin Ko and Andy Cheung
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Meeting You Today
Kelvin Ko, Managing Director of Verity Consulting Limited 15 years of investigation practice Ex-HK Police Inspector Experience from US listed Risk Management
company
Andy Cheung, Founding Principal of MAWSL Consulting ICAC Forensic investigation of Big Four accounting firm Experience in business ethics & investigation
function of a MNC’s Asia Pacific arm
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Covering Topics
Current Events – Global & Local Importance of Screening – Employers & Job Seekers Typical Lies on a CV Pre-screening Documentation Level 1 – Basic Level 2 – Advanced Level 3 – Integrity Interview Interview Skills
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Current Events Around the Globe
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How Often Do People Lie on Their CVs?
According to statistics provided by a HR firm: 80% of all resumes are misleading 20% state fraudulent degrees 30% show altered employment dates 40% have inflated salary claims 30% have inaccurate job descriptions 27% give falsified references
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Importance of Screening – Employers
Better candidates leads to better workforce, higher productivity, reduce turnover
Prevent long term costs and inefficiency Promote a safe and ethical working environment Protect company, maintain trust and good reputation
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Importance of Screening – Job Seekers
Ensure credibility Disqualify from other openings in the company Lost of future job opportunities Damaged reputation in the industry Discharge from company
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Typical Lies on a CV
1. Salary package2. Change dates to hide gaps3. Academic qualification4. Job title or designation5. Reasons for leaving6. Responsibilities and role7. Work experience8. Size of department9. Business interests10. Language fluency
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Case Study – Employment Dates
Overview
Findings
Result
Account manager position Claimed ex-company has been dissolved Provided reference letter copy
Research on ex-company Ex-company dissolved before stated
employment period
False employment date provided Potentially false reference letter were provided Candidate was not hired for the position
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Case Study – Conflict of Interest
Overview
Findings
Result
MNC Merchandiser position
Candidate was a shareholder of another company
Same industry
Information was not declared by candidate Conflict of interest with hiring company Candidate was not hired for the position
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Pre-Screening: Documentation
Complete curriculum vitae Design your own application form Statement of qualification Declaration of clear conflict of interest A guarantee and a understanding of liability Interview summary Authorization from the candidate
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Levels of Screening
1. Basic
2. Advanced
3. Integrity Interview
Junior staff and executives Job nature & role – any
First and Mid-Level management Job nature & role – sensitive Tiebreaker
Upper-Level management Job nature & role – sensitive Tiebreaker
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Level 1 - Basic
Verify educational qualifications• Confirm courses taken and certificates• Authenticate degrees and diplomas
Verify employment history• Previous positions and responsibilities• Salary history• Reason for leaving• Employment gap, unstated positions
Telephone enquiries with referees• Relationship with candidates• Cross-check with HR
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Level 2 – Advanced
Records• Business interest, conflict of interest, undisclosed business
Property• Lifestyle and income match
Legal proceedings• Legal and financial issues
Credit• Financial credibility
Media• Reputation and character
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Level 3 – Integrity Interview
Andy Cheung, CFE
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Guided by principles Doing what is right Not crossing the line
Transparency Trust Consistency
What is Integrity?
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1. Gather information
2. Solicit thoughts
3. Assess integrity
Objectives of an Integrity Interview
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Competence
Experience
Education Salary
Character Integrity
What Will You Consider Before Hiring a Candidate?
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Apply to all positions
In particular:a) Leaderb) Senior rolesc) Sensitive position
Could be performed by professional or in-house resources
Who Will be the Interviewee?
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Past behaviors + Scenarios Future Behaviors
What is the Theory Behind?
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1. Study CV
2. Self performed background enquires
3. Study pre-employment check report by professional
4. Prepare questions and scenarios probe into ethics standard and value (generic + job specific)
Before the Interview
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1. Build rapport
2. Use “softer” words
3. Express understanding
4. Avoid negative signals
5. Open questions
6. Body language
7. Thorough (action, thinking, feeling)
Interview Skills
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Q: What is the biggest mistake you have ever made and what have you learned from it?
1.What did he/she do? (action)
2.Why he/she did it? (thinking)
3.How he/she felt about doing it? (feeling)
Action Thinking Feeling‧ ‧
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Something to Share – How People See Integrity?Corruption Perception Index 2011
Source: Transparency InternationalNote: The Index ranks 182 countries on a scale of 10 (very clean) to 0 (highly corrupt)
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Something to Share – How People See Integrity?Corruption Perception Index 2011
Rank Country/Territory 2011 Score 2000 Score 1995 Score
1 New Zealand 9.5 9.4 9.1
2 Denmark 9.4 9.8 9.3
3 Finland 9.4 9.4 8.87
5 Singapore 9.2 9.1 9.26
12 Hong Kong 8.4 7.7 7.12
32 Taiwan 6.1 5.5 5.08
75 China 3.6 3.1 2.16
95 India 3.1 3.2 2.79
143 Russia 2.4 2.5 N/A
182 Somalia 1.0 N/A N/A
Source: Transparency InternationalNote: The Index ranks 182 countries on a scale of 10 (very clean) to 0 (highly corrupt)
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Contact Information
Kelvin Ko – Verity Consulting Limited
Phone: (852) 2581 9696
Fax: (852) 2581 9096
Email: [email protected]
Website: www.verity.com.hk
Andy Cheung – MAWSL Consulting
Phone: (852) 3693 5714
Email: [email protected]
Website: www.mawsl.com