Although a compelling cover letter, impressive interview, and strong work history can lead hiring managers to feel confident in extending an offer of employment to a candidate, there are other key verification processes that should be completed before taking this step. In addition to essential services like employment verification, education verification, and professional reference verification, identity tracing is crucial in reducing the risk of fraud, protecting sensitive information, and ensuring workplace safety.
Whether a candidate is using stolen/false personal information to pursue insider fraud, or they are a victim of identity theft with compromised personal information, it’s vital to use identity verification methods and technologies to avoid damage to your organization, remain legally compliant, and facilitate informed hiring decisions.
In this article, we’ll discuss the purpose and benefits of identity verification and explore which information is revealed during a search to safeguard your business, employees, and job candidates.
Why Should I Use Identity Verification?
Identity theft is an increasingly common problem and, at times, stolen, exposed, or expired personal information may be used by criminals to gain employment while presenting someone else’s personal identifiable information (PII). A candidate could use a falsified SSN, driver’s license, or even financial or medical records to pose as someone else and gain access to your organization to commit insider fraud. Due to technological advancements in graphics technology (and editing), criminals can more easily falsify documents like a government-issued identification or gain access to SSNs through rogue websites or other means. For these and other reasons, it’s essential for organizations to implement a process for fully verifying that any candidate-submitted PII or identification is accurate. Identity verification protects your organization, existing workforce, and even candidates who may be victims of identity theft (sometimes alerted to this issue through the identity verification process).
At its core, identity verification significantly reduces the risk of impersonation, insider fraud, and keeps your hiring process legally compliant, eliminating future liability that results from hiring an impersonator with malicious intent.
How Does Identity Verification Work?
As part of the general application and background screening process, a candidate will need to provide their name, address, SSN, and date of birth. Through an identity verification process, all of this information is investigated to ensure a match in multiple reputable databases. Identity verification not only tests the veracity of applicant-submitted PII, but also reveals all of the following and more:
- If the candidate’s submitted SSN has already been reported for fraud
- If the candidate’s submitted SSN has been connected to a deceased person alert or used in a death benefit claim
- If the candidate’s submitted name or SSN is associated with any active (military) duty alert(s)
- If the candidate’s submitted name or SSN is associated with any initial or extended fraud alert(s)
All of this information is acquired quickly and, when necessary, can also involve verification of government-issued IDs that were submitted for the background screening process. If an ID is considered suspect based on initial review, the ID can be forensically authenticated using facial recognition technology, all designed to prevent impersonation, fraud, and to expedite the hiring process. This step supports all organization types, but is especially indispensable for global organizations that must process and review international candidates and IDs with some regularity. When identity verification is paired with responsible I-9 verification, as well as education and employment verification, it massively reduces the risk of future criminal activity, including fraud.
What Does Identity Verification Prevent?
In addition to ensuring legal compliance and providing peace of mind about informed hiring decisions, identity verification protects your organization, employees, and clients from all of the following issues:
- Internal fraud or data breaches that financially harm your organization
- Financial losses for individuals impacted by credit damage, identity theft, or direct theft
- Liability in the event that a misguided hiring decision leads to compromised employee personal or financial data
- Penalties for non-compliant hiring
- Financial and reputational damage to vendors, merchants, clients, and others associated with your organization.
Additionally, any misguided hiring decision that results from false or fraudulent candidate information could later lead to significant employee turnover costs. The Center for American Progress reports that the average cost of replacing an employee can range from 16% among hourly employees to up to 213% of yearly salary for advanced or executive positions, most commonly landing between 50-60% of an employee’s salary. These figures don’t account for the additional disruptions to productivity and workflow among the remaining workforce following an employee’s dismissal.
Verify Candidates and Hire Confidently with The Orsus Group
Identity verification protects your organization, employees, and clients from acts of fraud that could cause financial and reputational damage. It also keeps your background screening process robust and comprehensive, providing peace of mind about all of your hiring decisions and the ongoing well-being and productivity of your employees.
Contact The Orsus Group today to significantly reduce the threat of fraud, ensure a safer workplace, and make trustworthy hiring decisions. Our expert team can guide you through implementing thorough identity verification methods that keep you ahead of evolving threats and protect your organization's reputation.