Are Employee Background Checks Enough?

We all want to trust the people who work with us and for us. But, we also recognize a certain level of due diligence is required to protect our businesses. So, we pay services to run employee background checks before we hire a candidate. If someone has a criminal history most employers at least want to be aware before that person is on-boarded. That should be enough right?

The problem is over 80% of fraud perpetrators have no criminal history at all (ACFE Occupational Fraud 2026: A REPORT TO THE NATIONS). Most people who end up committing fraud don't go into a job aiming to commit a crime. it's a gradual process that involves internal and external pressures such as demands for higher performance or personal financial problems, combined with an opportunity and the belief that they're unlikely to get caught.

Unfortunately, both the pressures and opportunities to commit fraud are increasing. Global economic uncertainty, increased rates of gambling and substance addiction, and many other factors have placed a lot of people in difficult financial situations. The widespread use of AI has made it easier than ever to falsify IDs, invoices, receipts, shipping manifests, and just about any other document needed to commit fraud. These two factors combined are driving up rates of fraud both globally and nationally.

While there isn't much business owners can do about the drivers of fraud, there is a lot you can do to limit the opportunities for fraud within your organization. It's important to have a concrete written plan for what to do if fraud is suspected. Read more about how a written fraud policy can benefit your business here.