Minimising Fraudulent Activities: How To Detect And Prevent Business-Related Deception Via AI-Based Background Screening
About 43 per cent of enterprises globally witnessed employment fraud as they did not run efficient background checks before employee onboarding, as per Association of Certified Fraud Examiners report
Cutting-edge technologies have redefined the ways organisations conduct their business. It has enabled them to be more accessible and visible while also improving their internal processes, products, and services. For instance, AI (artificial intelligence) has facilitated automation, which is aiding enterprises to save cost, effort, and time by streamlining tedious tasks. According to Grand View Research, AI will continue to revolutionise many different industries, with a projected CAGR of 37.3 per cent between 2023 and 2030. However, AI has also emerged as a successful tool to reduce fraud.
In today’s dynamic job market, organisations are required to stay on their toes while on boarding new employees. The dedicated person must be well qualified and experienced for the role for which they are hired. Therefore, rigorous background screening is an obvious step that can help enterprises hire the right employee. However, a better approach is to integrate technology such as AI for background screening. This is because a traditional manual process is time-consuming and does not ensure 100 per cent accuracy due to human intervention. Thus, having an AI-based screening solution can not only detect fraudulent activities but also prevent them.
Reducing deception with AI
The number of candidates providing false information in terms of educational qualifications, past salaries, and experience has risen sharply. According to an ACFE (Association of Certified Fraud Examiners) Report to the Nations 2022, 43 per cent of enterprises globally witnessed employment fraud as they did not run efficient background checks before employee onboarding.
This happened due to tight market conditions when several employers bulk hired in order to fulfil the demand pipeline. However, certain areas in the recruitment process were prone to being overlooked, and the organisation ended up hiring employees who were not fit for the role. Therefore, in order to safeguard themselves from fraudulent activities, the organisations must adapt new-age solutions such as AI-based background screening, as it can aid them in accurate background screening in a speedy manner, which in turn reduces costs and fraudulent activities.
Detailed and accurate analysis
Background screening, when done manually, can be daunting for organisations as it is prone to human errors. Usually, the absence of a system to conduct a detailed analysis is a challenge for enterprises. Primarily, some mistakes may appear to be small and are initially ignored. However, in the long run, they can harm an organisation’s reputation. The greatest solution to these issues is to use artificial intelligence for background checks. The background screening system with AI integration conducts in-depth studies and identifies the elements that might result in violations of regulations. With algorithms and pattern recognition, AI detects discrepancies and helps organisations make the right hiring decisions accurately.
Identifies risks and threats
Small risks that are frequently ignored can cause systemic flaws and increase an organisation's susceptibility to fraud. Every person who is considering working for a certain organisation can have their possible connections, intersections, and links mapped out when an AI-based system is in place. In this aspect, AI is able to handle large data sets and accurately identify potential hazards. A business may now cast a broader net and assess all potential hazards involved with the hiring process because any questionable behaviour is now more visible. As a result, an automated system that generates a thorough risk assessment report can help businesses hire people with the best records, thereby reducing the chance of fraud.
Speeds up the process
The manual background screening process is complex and time-consuming. The organisations may spend a lot of time and resources on background screenings, reviewing resumes, decoding the relevance of information, and then ending up taking a decision. However, AI-based screening can help organisations automate these tasks, leaving only the final decision to the humans who are hiring. The result of this automation in a fast-paced environment is a faster vetting process, which also reduces the hassle for the hiring managers as they can screen more candidates in less time.
All things considered
The hiring landscape is getting fast-paced and dynamic as businesses are growing rapidly. However, in this regard, fraudulent activities are also on the rise, which pose a potential threat to organisations. Employers who generally place bets on promising candidates without optimum background screening fall prey to fraud. As a result, it not only spoils the reputation of the organisation but also poses a risk to confidential data.
However, thanks to cutting-edge AI technology, the risks can be curbed and companies can hire the perfect employee in a hassle-free and speedy manner. AI-based background screening, with its attention to detail and accuracy, can screen large amounts of data and find potential risks and threats, which allows organisations to negate any challenges leading to fraudulent activities. As a result, it can turn out to be an ideal system to accelerate and secure pre-employment formalities while reducing fraud and deception.
The writer is the co-founder at TraqCheck.
[Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal.]
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