White-collar crime is on track to cost the USA more than $300 billion annually, with the trend steadily growing as technology takes a prominent role in day-to-day business, according to the FBI. White-collar crime is defined as nonviolent financial crimes – commercial or consumer fraud, embezzlement, bribery, etc.
Recently, Mike Levy, Chief of Computer Crimes, U.S. Attorney’s Office, presented “White-Collar Crime: Are You At Risk?” to Fort Washington Business Alliance (FWBA) members at Talamore Country Club in Pennsylvania. Mr. Levy shared how businesses can proactively prevent cyber-crime by managing disgruntled employees, installing software updates and uncovering phishing scams.
Mr. Levy gave insight into the minds of white-collar criminals by explaining that employees who feel “wronged” by their employers or bosses may seek illegal retribution. Such employees, he explained, were most at risk to leak or steal company trade secrets, as well as customer lists if proper steps are not taken.
Mr. Levy’s recommendation to the FWBA about preventing white collar crime was that employees have restricted access to areas of the company that are not pertinent to their role, additionally, employees should be explicitly informed that customer lists, sales leads and other intellectual property are company property, and may not be removed or shared with third parties.
This comes in the wake of the now infamous case of Edward Snowden, a former government contracted employee working for the National Security Agency (NSA). After Snowden leaked government information to the public, one of the first questions being asked by his employers was “how this could have been prevented?”
Although similar processes were in place at the NSA, many news outlets have reported that when looking into Snowden’s path leading up to his acquisition of a high level position in the NSA, researchers uncovered that the company responsible for his background check may have had some discrepancies regarding its procedures. The gravity behind these allegations is that if the background check was in fact flawed, then it is possible that Snowden should have never been granted employment and particular government clearance(s).
HR Expert Opinion
One of the best ways to prevent white-collar crime from occurring is to avoid hiring candidates with a higher propensity towards the crime via a proper background check.
A typical background check includes an identity validation, criminal records research, employment and education verification and credit check based on the position – from a background screening company that thoroughly and consistently investigates each client’s individual applicants and employees.
It is important to vet candidates before they are hired, while following all federal, state and local regulations regarding background screening. In doing so, you are establishing insurance and a best practice program from being on the losing end of a hiring/firing lawsuit.
