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Forensic Accounting, Computer Forensics, & Corporate Investigations
The Kessler Report
THE KESSLER REPORT Continued
A Publication of Michael G. Kessler & Associates, Ltd.
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FraudBusters® Edition
Volume 3

Number 1

...Faking Your Way To The Top (Continued from page 2)


position, request credit reports and driving records. Many companies find they simply don’t find they have the time to do all this digging themselves, so they often turn to outside investigative firms for help.

If you are lucky enough to catch a fabrication before an applicant is hired, you may end the interviewing process right

then and there. Even if you don’t know of any fraud during the application process, but discover resume fraud while subsequently defending a discrimination lawsuit from an applicant you fail to hire, such "after-the-fact" evidence can be used to bolster your defense. Unfortunately though, these errors are often not caught until the person is already working for you. In these cases, falsifying information on a resume is considered "just cause" for immediate dismissal depending on how grave the misrepresentation. Historically in such cases, the employee has little room for claiming wrongful discharge.

 Confronting the Individual

It is important to distinguish in the verification process the difference

between puffery and deliberate misrepresentation. You must decide if an exaggeration is material enough to rule out the applicant. Give applicants a chance to defend themselves. It could be an honest mistake. When confronted with the discovery of a deliberately fictitious entry on their resume, many applicants will slink away in shame. But some will brazenly deny all,

(Continued on page 8)

...Are They Lying? (Continued from page 3)
When questioned as to whether the HR professional would hire an applicant based on a professional affiliation, which claimed expertise in a particular area, the response was positive. When we questioned them regarding certifications, which we knew to be phony, they were impressed with the affiliation, and surprised to learn that they were bogus. The fact that organizations exist simply to sell titles to individuals in the hopes that they will appear more qualified, was surprising to many of the human resource professionals to whom we spoke.

Is checking references an essential component to the hiring process?

This question produced an overwhelmingly positive response. Just about every respondent expressed the necessity of verifying an individual’s background, job experience, and character through previous employers or personal references. Most companies were very prudent in this respect. Many found that this was the quickest way to gain insight into the applicant. A seasoned professional recruiter could often learn more by the tone and manner in which an individual responded to a question, than from the actual content of their answers.

Are background checks performed either internally or through an outside service?

This question gained a mixed response. About half of those

questioned did in fact run a background check that included criminal record, drivers record, credit history, and employment history. Those that did so felt it was a necessity, and felt they would be at quite a disadvantage if unable to do so. As one respondent claimed. "At one point when I first started at this firm the extent of our background check was to make a few phone calls and check references given to us by the applicant. This proved a severely insufficient way to achieve the goal for which we were aiming. Of course an applicant applying for a job will only provide the references that he knows will provide a favorable recommendation. By doing the background check, the choice is now out of the employees hands and we can get an unbiased view of the individual whom we are about to hire. Background searches by a reputable organization are an essential recruiting tool."

Are background checks generally accurate?

We asked the members of our survey group if they felt that the background searches performed for them were handled correctly and if they amassed the results for which they were searching. This question resulted in a mixed response. There were claims from some that they were not thorough enough and that in a few instances individuals with criminal records had passed with flying colors. Apparently if the crimes occurred in another state it was harder to track the criminals down. Those

(Continued on page 6)


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Copyright © Michael G. Kessler & Associates, Ltd. 1998. All rights reserved.