August 2014
Part of Capita plc
Watchdog Employment Screening
News from employment screening and advisory experts Security Watchdog
In this issue: p4. Staff fraud on the rise
p10. The importance of knowing your staff
p6. Delight through Excellence
p11. Language test cheating threat to Sponsor Licence
Security Watchdog News Essential new guidance on overseas criminal records checks After many months of collaboration between Security Watchdog and the Centre for the Protection of National Infrastructure (CPNI), new guidance on obtaining overseas criminal record checks and personnel security in offshore centres has been published. The guide provides advice for employers on how to obtain criminal record disclosures on individuals in 63 countries (within the European Economic Area (EEA) and outside of the EEA). A second report published in April by the CPNI and Security Watchdog offers employers essential advice on offshoring. Titled ‘Personnel Security in Offshore Centres’, it provides guidance on background checking in 14 countries worldwide, and includes those countries that are amongst the leading providers of offshoring and outsourcing services. Ewan Tweedie, Director of The Advisory Bureau said: “It’s advisable to understand what the key laws or regulations that relate to job applications are. There are a number of security screening measures that are available to employers planning to offshore services. These take into account legal, practical and cultural sensitivities during the recruitment process and on an on-going basis. Our report, written in association with the CPNI, will make it very clear to employers exactly what’s involved. “The new Personnel Security in Offshore Centres Report will provide employers with the latest guidance on the critical legal parameters that need to be taken into account when implementing security measures for international employees.” Both reports can be downloaded for free at the CPNI’s website (www.cpni.gov.uk).
Security Watchdog client showcase day ‘Mitigating Risk through Innovation’
Charity night raises £560 for poverty stricken children
We are currently hard at work behind the scenes preparing
money for a very worthy
for this year’s Client Showcase Day.
Security Watchdog held a charity fundraiser to raise cause. After a cake sale
The theme will be ‘Mitigating Risk through Innovation’
during office hours, Security
and will be held on Tuesday 28th October at the Capita
Watchdog employees headed
offices in Gresham Street, London.
out for a night of fun filled activities and managed to raise
Speakers will cover key topics and provide an update on the
£560 for the Mary’s Meals charity.
employment screening industry with an insight into future
Mary’s Meals is a global movement that sets up school feeding
developments.
projects in some of the world’s poorest communities, such as
Invitations are to be sent out in the coming weeks and we hope that you will be able to attend what promises to be a highly informative day.
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India and Malawi, where hunger and poverty prevent children from gaining an education. The results of the fundraising will make a difference to the lives of 55 children in these regions.
Criminality Update The Disclosure & Barring Service The Supreme Court has ruled that certain past minor cautions and convictions should not have to be disclosed during criminal record checks. The decision upholds an earlier ruling by the Court of Appeal, stating that certain convictions should remain part of a protected private life and any requirement to disclose would be incompatible with human rights legislation. The case was brought to court after an unnamed man was refused a job because of two police cautions received aged 11. The man had been DBS checked when he applied for a part-time job at a local football club aged 17 and later for a university course in sports studies. An unnamed woman also challenged the checks after being refused a job in a care home eight years after receiving a caution for shoplifting. The Supreme Court judges said the disclosures the two candidates had been required to make “were not necessary in a democratic society” and “were not based on any rational assessment of risk”. Following the Court of Appeal’s ruling, a system to filter certain old and minor cautions and convictions from being disclosed on a DBS Disclosure Certificate was introduced by the Home Office last year. Under the new filtering system, cautions given to adults are removed from criminal records checks after six years, whilst cautions to children are filtered out after two years.
The Department for Education has changed the criteria for an individual to be classed as working in regulated activity with children. The change affects the ‘frequency’ criteria that
The criminality report Our criminality experts identified over 600 anomalies in all disclosure applications submitted to the Disclosure and Barring Service in the first quarter of 2014.
an individual must meet to be classed as being in
The highest percentage of anomalies for the quarter
regulated activity with children.
related to ‘Driving a Motor Vehicle with Excess Alcohol’,
Frequency is now defined as an activity carried out by the same person once a week or more, or on four or more days in a 30day period. The requirement for this activity to be at the same location, or with the same children has been removed. Typically this now incorporates roles such as general careers advisors, school’s liaison for major employers, travelling educational actors and service providers dedicated to the
which accounted for 14.5 per cent of the total number of anomalies, representing a 2 per cent increase from the previous quarter. ‘Speeding Offence’ saw an increase of 9 per cent, the largest increase on the previous quarter, and offences for failing to comply to community order requirements and making indecent photographs of children rose by nearly 4 per cent.
educational and school sectors. General service providers e.g.
Our e-Bulk online disclosure system continues to process
security or engineering contractors who may have schools
DBS and Disclosure Scotland applications faster than ever.
within their catchment but cannot guarantee attending sites
Over half of all applications are being returned within 24
regularly, will remain outside of regulated activity.
hours, whilst responses taking more than ten days have
The sender organisation would require the enhanced DBS
dropped by 5 per cent.
check to be carried out, and the host organisation would obtain confirmation from the sender organisation that this check had been carried out and that the person is suitable to work with children.
www.securitywatchdog.org.uk 3
Staff fraud on the rise Fake job applications most common entry point for fraudsters Organisations need to be sure that any new recruits are precisely who they claim to be after the latest report from CIFAS revealed that employers are most at risk from fraudsters at the recruitment stage. In their report detailing employment fraud during 2013, CIFAS revealed that there was an 18 per cent rise in confirmed cases filed to their Internal Fraud Database committed by insiders or an organisation’s employees. The most commonly recorded type of internal fraud was employment application fraud, accounting for over 50 per cent of all cases, with many potential employees caught concealing unspent criminal convictions.
Other examples of falsehoods include using fake referees,
In what should be seen as a sign that pre-employment screening checks are catching fraudsters before they are able to gain employment, cases of successful applicant fraud
falsified documentation to support their application or stating false education or professional qualifications, most prevalent with graduate and first time job seekers.
dropped by 8 per cent whilst cases of unsuccessful application
As long as the employer has a rigid vetting procedure in place
fraud, where a falsehood was identified prior to the position
this discrepancy will be uncovered, but still could represent a
being offered and the application was rejected as a result, rose
significant waste of both time and resources on an undesirable
by 70 per cent.
candidate who should not have been in the system to begin with.
Some candidates mistakenly feel that there is little wrong
It is clear that carrying out comprehensive vetting procedures
in ‘embellishing the truth’ in an attempt to appear more
before a chosen candidate has been appointed should be a
employable than they actually are, particularly when they’re
priority. Some organisations have discovered that having a
faced with a high level of competition from other more
screening policy in place deterred potential fraudsters due to
desirable candidates.
the thoroughness of the checks, making them more likely to
Concealing unspent convictions, dismissal from previous
withdraw their applications as a result.
employment, or adverse relevant credit history is usually
An employee who makes a fraudulent job application may not go
information that the applicant would rather withhold, fearing it
on to commit further fraud within the organisation, however this
may hold them back when compared to the other candidates
person poses a significant risk to the employer, especially if they
they are in competition with.
are not qualified or deemed suitable for the job.
“
The most commonly recorded type of internal fraud is employment application fraud – accounting for over 50 per cent of all internal fraud cases.
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Immigration watch Increase in fine for employing illegal workers Following a consultation on proposed changes
Further changes in relation to the
to the Immigration Bill in the summer of 2013
calculation and enforcement of the fine,
the maximum penalty for employing an illegal worker doubled
including measures to allow recovery
at the beginning of May 2014.
of civil penalties from directors and
This means businesses that employ individuals who do not have the right to work in the UK will now face a fine of up to £20,000 per illegal worker dependent on the level of statutory excuse they can demonstrate. Furthermore, if an employer knowingly employs an illegal worker they may face a jail sentence of up to two years in addition to an unlimited fine. The Government is also increasing the maximum fine for employers paying below the minimum wage from £5,000 to £20,000 in an effort to deter unscrupulous employers from taking advantage of individuals who, due to their immigration status, are not protected by the UK legal system.
partners of limited liability businesses following failure to pay by the business, will be announced later in the year. A number of proposals to aid legitimate businesses are also to be introduced including a reduction in the number of documents an employer needs to check to establish a right to work, and replacing annual follow-up checks for non-EEA nationals with ones to coincide with the expiry of permission to be in the country.
“
Businesses that employ individuals who do not have the right to work in the UK will now face a fine of up to £20,000 per illegal worker.
Romanian and Bulgarian immigration down despite lifting of EU work restrictions
”
The number of Romanians and Bulgarians working in the UK has fallen by 4,000 since employment restrictions were lifted in January, figures show. There had been predictions that there would be a flood of migrant workers entering the UK after the EU work restrictions on Romania and Bulgaria were lifted on 1st January 2014, however these figures show that this has so far not been the case, although the total figures are up 29,000 compared with a year ago. Bulgarians and Romanians gained the right to visa-free travel to the UK in 2007 when their countries joined the EU, but there were temporary restrictions on the kind of jobs they could hold. These expired on 1st January 2014.
The Office for National Statistics (ONS) figures showed that 140,000 people from Eastern Europe were employed in the UK between January and March 2014.
www.securitywatchdog.org.uk 5
Delight through Excellence Client and candidate experience is at the heart of our service offering. Our core values act to underpin our “delight through excellence” programme whereby all at Security Watchdog are encouraged to enrich and enhance our services. At the core lies the Security Watchdog operations team, the heartbeat of our operation without whom there would be no facility to “delight through excellence”. At our Client Showcase Day last year we held an open panel session where our clients were able to liaise directly with our industry experts to address their ideas and queries around our service, allowing us to better understand how we can improve. Their idea of the ideal candidate experience included zero duplication of data, speed and simplicity, visibility and transparency, with clearer communication and guidance on workaround requests provided. Sara-Jane Bartle, Operations Director for Security Watchdog’s Alton office said: “Over the past year we have seen the average SLA attainment rise by around 6 per cent. Although our aim is to achieve SLAs 100 per cent of the time, in some cases there are outside factors at play to prevent this, such as being unable to contact a candidate’s current employer or indeed the candidates themselves. “We pride ourselves in our ability to innovate, and in a move to counter difficulties in contacting the candidate and increase SLA attainment, we have introduced SMS texting as a new channel of communication. After much research we found candidates might be unwilling to answer calls received from a number they don’t recognise, however would more than likely read a text that comes through to their phone.”
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Our core values act to underpin our “delight through excellence” programme whereby all at Security Watchdog are encouraged to enrich and enhance our service offering.
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The SMS text service has been trialled successfully on
Providing this workflow information in advance allows us to
a number of our client base, and so far we have found
ramp up our operation accordingly. Knowing a client is going
candidates are responding far quicker than before. The service
to be sending over large numbers of candidates for a project,
is scheduled to be rolled out across all accounts during the
or is expecting a large influx of candidates, we can pull in
course of this year.
additional resource to manage workloads. The operational management team structure in Alton has changed with the addition of two experienced operations managers. Some of the feedback we received was focused on escalations during the screening process; by introducing a new level of management we will be able to handle each escalation more effectively. Our operations managers are responsible for five service delivery managers in Alton, with our Sheffield office, which processes all our DBS checks, providing
This innovation follows the Candidate Zone, which launched
additional support to our operational core.
last year. This is an online portal designed to assist candidates
Sara-Jane continues: “No matter how big or small the account
in gleaning a further understanding of the screening checks we
is, all of our clients are treated equally. We provide the
will be performing on them. This is a forum designed to work
same personal service to all of our clients, whether they’re
in conjunction with their screening packs, where they are able
sending through 7,000 files or just ten. Every client is assigned
to ask questions on any part of the screening process that
a dedicated client relationship manager, service delivery
they are unsure of.
manager and screening team.”
As well as the feedback received during the Client Showcase Day, a survey was circulated to all of our client base in early 2014 in order to glean information on our successes and areas for improvement, and the results centred mainly on proactivity and communication. Security Watchdog always aims to be a proactive operation. Encouraging a close working relationship between our Client Relationship Managers (CRMs) and the clients within their portfolio ensures a permanent point of contact who is always on hand to address queries and handle any changes that may be required. This is not just over the phone; all CRMs should have regular face-to-face contact with their clients and this allows us to keep up to speed with any projects or intensive hiring periods that our clients have in the pipeline.
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We’re immensely proud of our people and the service we offer everyday - we never rest on our laurels.
”
Susie Thomson, Managing Director, Security Watchdog
www.securitywatchdog.org.uk 7
A Capita company promotion Is low trust killing passion and engagement in your business? Here are some startling statistics: • There are 53 per cent less sick days in organisations that are trusting of their employees • People are 87 per cent less likely to leave an organisation that is trusting of its employees • Out of a survey of 300,000 leaders in over 60 countries, 89 per cent of people put ‘honesty’ as the main trait they wanted to see in their leaders • The relationship with your boss is cited as the number one reason people leave an organisation
A lack of trust within an organisation will have a detrimental impact on financial success Scandals of mistrust come as no surprise to most of us, whether you’re the waitress in a bakery or the CEO of a bank. The CIPD’s quarterly report found that only 36 per cent of employees trust senior leaders and 58 per cent had adopted a ‘not bothered’ attitude at work. The symptoms of mistrust – hostile gossip, fruitless meetings and incompetent leaders - are daily realities for many in the workplace. Yet, high trust is a key characteristic of profitable and sustainable businesses. Trust not only provokes customers to buy, it encourages employees to stay loyal and turns process-clogged organisations into collaborative machines. It’s time we spoke up about the lack of trust in our organisations and took responsibility for change. Here are the three steps we take at Blue Sky when turning rhetoric into reality.
Take the trust blinkers off
Get buy-in from within
Start noticing the unquestioned low trust behaviours that
Finally, trust has to become a priority truly embraced by
happen within your business every day. Examples to look
people at all levels of an organisation to ensure cultural change.
out for include leaders talking the talk but not demonstrating
Naming the behaviours you identified in step one, and citing the
the competence or the character to live up to their senior
evidence that shows the impact of trust on the bottom line will
role; widespread grumbling behind the backs of colleagues; a
help win over cynics. With senior leaders as your champions,
reluctance to make decisions; not owning up to mistakes and
you then need to ensure that trust coaching spreads through
making self-serving decisions.
the ranks. As role models begin to emerge, the groundswell of
Break trust down into its elements
trust will begin to grow. To get started on the process, have a go at our online trust
Steven M.R Covey’s brilliant book ‘The Speed of Trust’
survey; this will help you identify the levels of trust you
emphasises that trust is a behaviour rather than a trait. By
currently have in your team and help you pinpoint the specific
breaking trust into 13 characteristics, including talking straight,
trust gaps that exist, to then focus your efforts on the right
righting wrongs, confronting reality, clarifying expectations and
behaviours to build a high trust team.
practicing accountability, he demonstrates that trust is under our control, and that it can be rebuilt, step by step – if we can find a way to commit to it.
8 www.securitywatchdog.org.uk
Email hello@blue-sky.co.uk for further information or call 01483 739400.
Financial Services Spotlight Dodd-Frank Act impacts on employer background checks In 2012, the Dodd-Frank Act (DFA) became law. The thrust of it is to implement preventative regulatory oversight of the financial services industry to avoid another financial meltdown. Specifically it provides requirement of registration and regulation of derivative SWAP dealers and major SWAP participants and imposes stringent clearing and trade execution requirements on standard SWAPs as well as stringent record keeping and reporting regimes for SWAPs. Proponents of Dodd-Frank believe that the Act will prevent our economy from experiencing a crisis like that of 2008 and protect financial institutions and consumers from the many abuses that contributed to that crisis. Certain brokers and lenders involved in derivative SWAP dealings had latched on
Most employers conduct routine background checks and
to the idea of making large sums of money and were willing
occasionally request credit reports on prospective hires and
to subvert sound business practices in the assessment of
current employees. The Dodd-Frank Act will not impact
potential borrowers. As a result, these brokers and lenders
the currently existing obligations of these employers under
took procedural shortcuts and enlisted cooperative appraisers
the Fair Credit Reporting Act (FCRA). Several employers,
to report inflated property values. In some circumstances,
however, are considering credit scores of prospective and
documentation was manipulated to create the illusion that
current employees in assessing the propriety of placement
the home was going to be owner-occupied, when, in fact, the
in financially sensitive positions – i.e positions in which
property was being purchased for the purpose of flipping it.
the employee will have access to cash, credit and financial
In others, documentation was falsified to show employment
information and other valuable assets or data. These
and incomes that would make it appear that a borrower was
employers can use financial probity checks to identify
qualified when in fact he or she was not.
employees who, because of current or historical financial
The Dodd-Frank Act includes consumer protection provisions which will impact the manner in which some employers conduct
hardships, might be predisposed to misuse their access and misappropriate the employers’ assets and data.
background checks on prospective and current employees.
Peter Southgate, Finance Director at Security Watchdog
Parties involved in SWAP dealings should have the necessary
says: “We are at the forefront of employment screening
background checks (criminality and financial probity checks) and
best practice for financial services institutions in the UK
be registered with the DFA to avoid fraudulent activity.
and overseas. We understand the risks associated with unregulated SWAP derivative dealings. Many of the leading banks come to us for advice on the Frank-Dodd Act and what necessary checks are required to mitigate risk. We will always recommend the minimum checks that are role-specific.”
www.securitywatchdog.org.uk 9
Screening Focus The importance of knowing your staff The recent case of William Vahey has reinforced the need for vigilant employment screening procedures to ensure you really do know your staff, especially those who have worked around the globe. Vahey, a convicted sex offender in the United States, was not only allowed to leave the country unsupervised after two years on probation in 1972, but move freely from job to job across the world, gaining employment as a teacher in a number of prestigious international schools, including one in
The extent of his crimes were only uncovered when a maid
the UK. Could the whole situation have been prevented with
stole a hard drive from his Nicaraguan home and uncovered
just one look at Vahey’s criminal record?
photographs showing the teacher had molested hundreds of
All teachers working in the UK are subject to an Enhanced DBS check, which shows both spent and unspent convictions.
adolescent boys in his trust during a career spanning ten schools on four continents.
However international equivalents (Certificates of Good
As a result of a lack in best practice vetting procedures, young
Conduct or No Conviction) vary in what they disclose,
lives have been irreparably damaged. There could be future
although most report on an individual’s entire criminal
financial damage with former students of Southbank International
history. The problem is that these specific risk registers, such
seeking £1million compensation as a result of exposure to Vahey.
as the sex offenders register, are country specific (or state specific in the case of the US) and do not normally share that information outside of direct police enquiries.
Ewan Tweedie, Director of The Advisory Bureau said: “If an individual has a history of moving job roles and countries of residence this is often for a very good reason. You have to ask the
In Vahey’s case, despite the fact he was required to update his
question of why they are moving. What are they moving away
information on the sex offenders register each time he moved,
from? This is why it is essential that you take proper references
he was never chased by the authorities when the updates
from previous companies to establish their reason for leaving.
never came. And when the state sex offenders register was
Similarly, it is important to request criminal record checks
put online in 2004, Vahey’s name was not included because
in each country that they have resided in for any length of time
authorities discovered he was no longer living in California.
(certainly long enough to commit a crime and go through the
Upon appointment to Escuela Campo Alegre in Venezuela
judicial process).
in 2002, he was asked to provide a police record from his country of residence. The only stipulation was that he had to have lived there for five years. This allowed Vahey to present his record from Indonesia, but with no documented history of problems in the country, he was cleared to teach once again. In 2009 Vahey went to work for Southbank International School in London, which has approx 350 pupils from 70 countries, and was subjected to two UK criminal background checks where he had not lived before.
“
We would recommend media checks that are run on a global search to highlight any adverse publicity attached to an individual anywhere in the world, as a child sex crimes will invariably generate press coverage.
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Ewan Tweedie, Director of The Advisory Bureau 10 www.securitywatchdog.org.uk
Mandatory language test cheating threatens higher education sponsor licences
Since 2011 all overseas student visa applicants are required to
Without a licence the university would have to find other UK
prove they can speak English at an appropriate level, but over
or EU students to fill the empty places, and recoup the lost
48,000 of the language tests taken have been declared invalid
money in a climate where other higher education institutes are
or questionable following an investigation into systematic
currently recruiting aggressively. Reputational damage will also
cheating facilitated by organised criminals.
occur as a consequence of bad practice, increasing the risk of
As a result, a number of higher education institutes have had
prospective students not applying in the future.
their Tier 4 sponsor licences suspended, including Glyndwr
“The responsibility lies with the organisations to improve
University which had its licence suspended when it was
their practices to ensure they have a robust process that
found that over 230 non-EU sponsored students had invalid
shows they can comply,” advises Peju. “But often these
English test results - a figure that could rise to over 350 with
responsibilities are held by someone who does not have UK
questionable results taken into account.
immigration responsibilities as part of their day-to-day work,
Whilst the language tests in this case are provided by a third
and so the risk that it slips through the net is heightened.”
party company, who are currently undergoing a criminal
Peju continues: “UK immigration is dynamic and ever changing,
investigation, it is still the organisation holding a sponsor
therefore an organisation that will be on top of its sponsor
licence who are liable.
responsibilities must be constantly up to date with the UK
Peju Ojemuyiwa, The Advisory Bureau’s senior OISC regulated immigration consultant said: “It exposes the internal
immigration law and updating their processes to ensure its keeping up with any relevant changes.
processes of these institutions to the extent that it portrays
“At Security Watchdog, we are naturally risk averse and
them as being incapable of being trusted to hold a sponsor
ensure we work with our clients to identify where these
licence if such large quantities of fake tests can pass through
potentials risks are so together we can create solutions that
their systems.”
are dynamic and lasting to mitigate and remove such risks
Attracting overseas students from outside the EU has
permanently.”
generated additional revenue for higher education institutes, and around 100,000 students get their visas to stay in the UK extended each year. Whilst Glyndwr University has the right to appeal their suspension, having their licence revoked would result in severe financial and reputational damage.
www.securitywatchdog.org.uk 11
The Executive Screening Package The most comprehensive and thorough solution on the employment screening market, suitable for senior level hires Headhunting for human resources Before taking an executive or directorial position within a new organisation, it is imperative that the individual is thoroughly vetted against the highest possible standards.
How the Executive Screening Package works
A national legal services provider headhunted a director into an human resources position via an executive recruitment
Your executive candidate will provide you with all the
website in 2010. However, despite one candidate passing a directorship check, further investigation into the performance of the company demonstrated that despite truthfully claiming to be a ‘national HR advisory consultant’, the company only
necessary documentation required for us to perform the check without completing an online form. We will liaise directly with your HR or resourcing department in order to
had three small clients and the candidate did not have the
obtain this information.
experience necessary for the role.
Our expert client liaison officers will verify the candidate’s
Our client is now satisfied with the appointment, and the
identity and right to work documents, perform an enhanced financial probity check and obtain a criminal disclosure
director of human resources was later developed into a director of operations role.
certificate outlining any unspent criminal convictions under the
Why utilise the Executive Screening Package?
Our industry-leading screening executives will then verify
Rehabilitation of Offenders Act, 1974.
• The most extensive pre-employment screening package on the market • 100% compliance with all relevant UK and international employment and data handling legislation • Ideal screening solution for executive and directorial
the candidate’s employment history over a ten-year period, their highest academic or professional qualifications and memberships, and we will conduct International directorship checks and a media search. We carry this out using maximum sensitivity and diplomacy. Finally, the candidate will be referenced against international
appointments • Maximum risk mitigation and corporate responsibility
sanctions lists, the Financial Standards Authority and, for candidates coming into your business from outside the UK,
“
Security Watchdog’s Executive Screening Package is perfect for all new staff coming into an extremely sensitive operation. We would not settle for anything less.
”
Part of Capita plc
international criminality databases. The results from the checks will be compiled into an Executive Due Diligence Report, and we can be available to give real-time support in the appointment decision.
Head Office: Cross and Pillory House Cross and Pillory Lane Alton, Hampshire GU34 1HL
For further information on any of the articles, please contact us on +44 (0)1420 593830 or info@securitywatchdog.org.uk © 2014 Capita plc. Watchdog Magazine August 2014
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