2020 is just two months old and we’re already seeing rising employee frauds in major companies across India. From major MNCs to banks, frauds worth over INR 10 Crore have been already committed. Hard to believe isn’t it, that such big corporates are falling prey to employee fraud, that costing them so much money?

When it comes to employee fraud, Employee Crossings believes in the old age adage of “prevention is better than cure.” A thorough background verification of the candidates is essential, not only to get to know them better, but also to ensure security and growth to your company. 

Still thinking twice about background verification? Let us look at some of the top frauds that have taken place in the last couple of months alone, in India, which could have well been prevented with a more secure hiring process. 

1. INR 3.5 Crores embezzled by employee under the pretext of gift vouchers:
   

   A large MNC has recently filed a case on one of its employees, who allegedly embezzled Rs 3.5 crore under the pretext of ordering gift vouchers meant for the outperforming workers.

   To incentivise its close-to 15000 employees working in Mumbai, the company usually gives its token of appreciation in the form of gift vouchers worth INR 1000.
   The employee in question was in charge of procuring the gift vouchers from vendors, when team leaders raised requests for the same. But allegedly, over 2500 vouchers were found in her cabin, when only 242 such requests were raised.

   This raised eyebrows and, when investigated, it was learnt that she had used many a vouchers for her personal use and issued fake vouchers to employees with a show value of INR 1000.

   A thorough background check by Employee Crossings would have given the company her entire background information, her education, her past work, criminal records, all of her addresses and so on.

2. Sales Manager of bank commits fraud worth INR 10 Crores:
   

   The sales manager of a bank, branched in Mumbai, was arrested for an alleged fraud worth over INR 4 Crores. The employee, along with a lawyer and a couple of businessmen, made fake stamps, letter heads and even changed the mobile numbers of companies to transfer huge amounts from the company account to their personal accounts.

   Having more information about a person, checking his/her background, often tells us a lot about them and their work. A majority of fraudulent activities can be prevented by securing the loose ends while hiring employees, with background verification by Employee Crossings.

3. A fraud that costed the company nearly INR 20 Crores:
   

   3 employees of a famous company in India executed a fraud worth a whopping INR 20 Crores, forcing the company to not only wake up and take note but also to fire over 2000 employees pan India.
   The employees created fictitious clients and scooped out massive commissions from their company.

   The result of the fraud has left the company in big trouble, financially and as well as from a PR point of view.

   A background verification of the employees would have ensured that these employees would have been thoroughly checked out and their details, both professional and personal, were with the company.

Had the above mentioned companies and other corporations spent a little bit of money and time on getting a verification done before hiring a candidate, most of these frauds could have well been prevented. 

Realised the importance of employee fraud? Log on to www.ecrossings.in for more information about what all aspects and angles to check, how authentic the checks should be and how to balance the privacy of the employee while also verifying his/her details.