The business case is simple; due diligence dictates to perform a quick inexpensive periodic driver’s licence scan that limits liability.
In the United States Federal law specifies that all individuals and organizations within the United States are responsible for ensuring that they do not undertake business dealings with an individual or entity listed on the Office of Foreign Asset Control (OFAC) Specially Designated Nationals (SDN) and Blocked Persons List.
The primary corporate focus goes beyond item one above. Pre-Employment Compliance and Due Diligence is simply a demand on business to protect the company from unnecessary liabilities. Know who you hire and what are the liabilities associated with the individual.
Continuing Due Diligence involves employment screening, for example, in the case of corporate vehicle fleets where employees are operating company vehicles. It is the responsibility of all companies that operate fleet to perform due diligence and ensure that all employees operating their vehicles are legally valid to drive, have a valid and legal drivers licence.
For instance: The case where an employee who drives a company vehicle while under suspension is operating the vehicle outside the boundaries of the motor vehicle act as well as the contractual insurance policy.
HR employee review: Evaluate Prospective Employees’ Credit Histories
Insurance fraud isn’t limited to external sources. There’s a certain amount of it that originates with insurance companies’ own staffs. Claims adjustors cut a lot of checks, and unethical folks may try to skim a few bucks off the top. Agents can commit fraud by “stealing” customers’ car insurance or life insurance premiums. The agents take in customers’ money, then pocket it without ever actually purchasing the policies. Savvy insurance companies try to prevent such fraud by running credit checks on all prospective employees. Applications from those with bad credit or financial issues are flagged as those more likely to commit fraud.
One of the easiest ways for insurers to catch crooks is via a basic cross-check. All this involves is looking for simple patterns in the checks they’re sending out to pay claims. If the same person is receiving numerous checks, that’s a warning sign. So is the payment of several big claims to the same address, even if the name on the check is different.
Prevention takes the form of setting up algorithms for ID search, AKA awareness, fraud operating similarities based on previous claims, predictability and historic interactions.