Q&As

How can I protect my firm from fraudulent employees?

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Published on LexisPSL on 10/01/2020

The following Practice Compliance Q&A provides comprehensive and up to date legal information covering:

  • How can I protect my firm from fraudulent employees?
  • Vetting
  • Applicant declaration
  • References
  • Criminal record checks
  • Qualifications and regulatory record checks
  • Online tools
  • Screening requirements in the MLR 2017

You are at risk of being targeted by fraudsters who may seek to become an employee. These are known as infiltrators.

Your firm could be more vulnerable to infiltration and exploitation by criminals if you do not have the appropriate level of vetting relevant to a particular role in place.

You should therefore first consider your approach to vetting staff. In particular:

  1. staff in higher-risk roles should be subject to more thorough vetting

  2. temporary staff in higher-risk roles should be subject to the same level of vetting as permanent members of staff in similar roles

  3. if you use employment agencies, you should take steps periodically to satisfy yourself that the agency is adhering to the agreed vetting standard

  4. how frequently you refresh your screening during the course of the appointment

Vetting

There are various methods of vetting to consider, including:

  1. applicant declaration

  2. references

  3. criminal record checks

  4. qualifications and regulatory record checks, and

  5. online tools

Applicant declaration

You may wish to include in your employment application form(s) an ‘Applicant Declaration’ requiring confirmation by each applicant of their understanding that if false information is provided which leads to their appointment, or it is subsequently discovered that false information has been supplied, it will render them liable to dismissal without notice.

References

It is common practice for employers to give a reference almost as a matter of course unless there are good reasons for not

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