To be clear, you should always run a background check on potential employees who fill out job applications. They should be informed in advance that the check is taking place, and what all it entails. Armed with that knowledge, they should also have a chance to explain their side of any negative indications that might come up. We are all human. Our lives are complex, and at times, messy. Things happen that don’t always translate well on paper. When it comes to hiring, a little benefit of the doubt goes a long way.

Just don’t mistake the benefit of the doubt for leaping before looking. And the thing you should be looking at closely is the background report. There are many indicators of a candidate’s worthiness that come up in the interview. Within a very short time, you can learn that the candidate is incapable of professional, verbal communication. It is not a trivial matter of accent or dialect. And if that candidate cannot communicate professionally to you, don’t expect them to do any better with a high-value client. When it comes to financial services, some things simply don’t show up in the interview. Here are a few things to look out for:

Tips To Stop Employee Tax Fraud & Other Criminal Activity

Negative Tax Status

Tax Attorneys

Not all background checks are created equally. Be sure your company contracts for background checks that include tax status. Not all tax issues end in audits. And not all audits end in a ruling of fraud. So be sure to learn the difference between an honest error and fraudulent activity. Even honest errors can be red flags if they are made too frequently. It suggests that one is not very well-versed in the paperwork and process, or they’re not very careful when filling out crucial documents. Financial services are all about the paperwork that has to be meticulously handled. Putting the wrong person in that job could mean tax troubles for your clients and your company.

Tax fraud is a gateway drug to all manner of other types of fraud. Once a person enjoys a small success in financial fraud, they get a taste for it and always go back for more. A person who is fudging the books with regard to their personal taxes is not going to be any more scrupulous with regard to your clients. If you want a preview of the way a candidate will handle your money, take a good look at how they handle their own.

Negative Credit Implications

Consider filing the taxes yourself

Good credit starts around 670. That is the low end of good. Ideally, what you want to see is something in the mid-700s and higher. When you are hiring someone for a financial services position, you should ask yourself the following question: Based on their credit report, would you give them a substantial loan? If you wouldn’t, you should probably not give them responsibility for your money, and the money of your high-value clients. A person who wouldn’t qualify for a loan should not qualify for the best-paying jobs in financial services.

It is not a matter of discrimination. A person with no credit has no useful experience with money. They are hardly in a position to advise someone else about it. The same is true for a person with poor credit except for the fact that their experience tells you that at best, they only have a textbook knowledge of handling money. When it comes to financial services, the life experience of maintaining good credit is an indicator that they have something useful to say to a client.

Criminal Behavior

criminal defense attorney

You would be surprised by the off-work activities that could get you fired in an at-will state. You could be fired for criminal behavior. Just ask any number of prominent athletes who lost their job after being found guilty of abuse, DUIs, and other criminal activities. It is easier not to hire a person than it is to fire them. One reason you want to be extra careful is that off-work behavior can affect your company’s good name and reputation. There is a difference between second chances and opening your business to unstable and dangerous individuals. Be wise. Unpaid parking tickets are not the same as domestic violence.

The business of financial services is based on trust. When your clients lose trust in your company, you lose clients. Use the background check to find people you can trust. Those are usually the people who do not have negative tax implications, a negative credit report, and a history of criminal behavior.

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