While many believe background checks are most effectively used to screen entry level employees, I respectfully disagree. I believe the most important and cost effective screenings are at the executive or key personnel level. Do not let past accomplishments nor business prowess cause you to overlook the need for due diligence when filing executive level positions.

While any instance of employee theft can have a large impact nothing will rock the core of your organization like a large scale key personnel embezzlement.

The 2016 HISCOX Embezzlement Study:

“Four of every five victim organizations had fewer than 100 employees; just under half had fewer than 25 employees.”

“More than 40% of thefts were committed by an employee in the finance/accounting function.”

“Average loss = $807,443”

“Those with the most access to and control over the money take the most. The positions with the highest frequency of embezzlement are made up of employees with the access to money or more tenured managers who oversee the financial controls.”

“The type of fraud embezzlers can commit varies by industry. What doesn’t change, however, is the need for access to funds. In the majority of cases we studied, managers were more likely than employees to steal.”

While some may be first time offenders, many had a background that indicated a level of risk. Remember to be proactive and do not let this happen simply because you failed to check.

Call BGI to learn more about Executive Level/Key Personnel Background Checks.

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Published by cvancomp

Chris owns BGI Associates LLC. Chris is a licensed professional investigator with over 25 years of prior state and federal law enforcement experience. In his 25 years Chris was promoted from road patrol to Sergeant, Sergeant to Lieutenant, Lieutenant to Captain and then to Director of Law Enforcement. Chis has policed everywhere from rural Michigan to inner-city Chicago.

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