Do You Really
Know Who You Are Hiring?
By Universal Underwriters Group's
Loss Prevention Department
Background checks can help
"I can't believe that employee would steal $100,000
.he was like one of the family."
It's a fact of life, employees handle large amount
of cash at most businesses. They may also have access to parts,
supplies, equipment, vehicles, customer credit card numbers and
your own business checks. The potential for internal theft is extensive
and difficult to control. Some believe that the proliferation of
gambling across the country may be adding to this problem.
You need employees you can trust and strong internal
controls for accountability. Hiring the best people available to
the first step to controlling internal theft at your place of business.
When implementing the practices outlined below,
businesses must comply with all guidelines set forth by the Fair
Credit Reporting Act (FCRA) throughout the hiring process.
Obtain a resume from applicants whenever possible
to determine if they are qualified to apply for the position they
are interested in.
All applicants should complete a full comprehensive
At least two managers or owners should interview
each applicant to verify information on the application and/or resume.
Verify work history by contacting former employers.
Check references provided by job applicants.
Obtain transcripts to verify educational background.
These should be requested by the applicant and sent directly from
the school to you.
Conduct a criminal history check on those applying
for positions that involve money handling.
Require prospective employees to bring their
Motor Vehicle Record (MVR) to their job interview.
There are vendors that perform background investigations
at a reasonable cost.
Require separation of duties in the business
office. Someone not authorized to deposit or withdraw from the business
should reconcile bank accounts.
Require dual signatures on all business checks.
An independent accountant should conduct a surprise
audit on an annual basis.
Have bank statements delivered directly to the
owner/manager for review.
All incoming checks should be stamped with "For
Deposit Only" upon receipt.
Never cash personal checks for customers or employees.
Cash, checks and deposits should be kept in
a locked safe, never a desk drawer.
Reconcile cash drawers at the end of each employee's
Proper employee selection and tough internal controls
are your best defense against internal theft.
Gerry Cecil is the National Account Executive
for the Special Account Services division of Universal Underwriters
Group. For more information about how Universal Underwriters Group,
Special Account Services can help your automotive recycling business
needs call 800-840-8842, ext. 4845, visit www.uuic.com/specaccts/ara.asp
or e-mail: firstname.lastname@example.org.