Sterling Report Advocates for Background Checks to Reduce Employee Fraud

Sterling has released a new report that examines the gig economy within the context of identity fraud and broader hiring trends. The White Paper was published in collaboration with HR.com’s Research Institute, and was based on a survey of 300 HR professionals from large and small organizations alike.

The least surprising finding in the study is the fact that the gig economy has indeed had a noticeable impact on hiring practices, especially with regard to the screening of temporary gig workers. Roughly half (48 percent) of the respondents had experienced at least one identity fraud incident involving an employee, and 64 percent of the respondents expressed confusion about the many laws and regulations they are expected to follow during the screening process.

At the same time, most companies are not taking advantage of some of the more effective screening tools that are currently available. 38 percent of the companies that carry out continuous employee background checks have discovered criminal activity, while an additional 18 percent have unearthed employee fraud. Only 20 percent of companies screen social media profiles, though the practice is expected to become much more common in the next few years.

Sterling and HR.com also advocate for biometric screening, but note that the majority of companies (69 percent) do not utilize fingerprint recognition.

“This whitepaper underscores the need—across many sectors—for effective, accurate, and compliant background checks,” said Sterling Gig Economy General Manager David Bloom.

“The modern HR team must be informed, resourceful, and forward-thinking,” added HR.com CEO and Chief Investigator Debbie McGrath. “Among the tools available that maximize safety and minimize risk are continuous monitoring, social media checks, and biometrics scanning.”

It’s worth noting that employers interested in biometric screening need to make sure they comply with more stringent privacy regulations like the Illinois Biometric Privacy Act, which has ensnared companies like Dr. Pepper and Burger King in the past few months. Sterling launched its own Sterling Identity division earlier this year to provide corporate customers with identity verification and background check services.

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December 11, 2019 – by Eric Weiss