Secure employment verification is a vital function in the marketplace today. Not only is secure employment verification essential for employers and human resource professionals, but it’s also vital for government agencies and financial institutions. With identity fraud and falsified employment records rising and being used for various kinds of theft, it’s apparent that cybersecurity is essential in employment verification and reference checking.
In this article, we’ll examine why verification of employment (VOE) is crucial, what role cybersecurity has to play in VOE systems, and why robust security in the VOE process is essential to protect everyone from graft and fraud.
Why is Verification of Employment Important?
Verification of employment is crucial for employees, financial institutions, and government agencies for the following reasons:
- Verification of Employment is essential for employees to both apply for new jobs as well as to be able to collect government benefits and apply for various kinds of loan financing, usually for cars and homes. Verification of employment is also essential for small business owners who need to not only verify assets on hand but also show that they have had historically verifiable streams of income via previous employers. This reference check process is essential for creating a KYC (Know Your Customers) profile and work history. Vague answers are risky answers and solid information is essential when conducting reference checks.
- Verification of employment is also essential for banks and other lending institutions because they are on the other side of a loan transaction. Fake employment information can result in lending out of money to people who never intend to pay it back. Robust VOE systems reduce risk and bring down the cost of lending to everyone. Simply put, background checks reduce risk.
- Finally, verification of employment is essential for various government agencies. From Unemployment verification, qualification for FNMA and GNMA loans and SBA loans are all essential for government agencies to carry out these vital programs. Identity theft is as much a threat when dealing with unemployment insurance as with anything else.
Reference Checking For Your Company Or Agency
Being able to check references is important for the government, businesses, and individuals alike. As said before, this is especially important for the prevention of various types of fraud and financial projections. For example, if you’re a financial institution, you’ll need to construct a financial profile for applicants who come to you for home loans, lines of credit for business, and other needs.
Verifiable income history is essential in order to create a risk profile for an applicant. Since it’s no longer possible in many cases for an applicant to come into a branch and meet a bank manager face to face, the cybersecurity aspect of loan applications and KYC (Know Your Customer) is becoming more important by the day. Our globalized economy makes bank fraud globalized as well. Verification Of Employment is an important step in the KYC process, and directly affects a bank’s bottom line.
So Where Does Cyber Security Come In?
The old method of confirmation of employment history by mail or fax isn’t practical in today’s works. This means that any kind of reference check needs to be carried out online.
Just like everything else that has gone digital, electronic verification of employment is the future. It is quick and theoretically reliable– but just like online banking and other sensitive areas, electronic employment verification is highly susceptible to cyber security threats. As technology continues to advance, ill-meaning people seek to steal sensitive information. Be it a hiring process, a loan application or confirming a job title, a solid, confirmable background check is essential.
This is also essential for government agencies, as well. Secure Verification of Employment systems is critical in eliminating waste and fraud in the application process for various kinds of government benefits. The capture of government benefits by fraudsters who use false employment information robs those same benefits from people who really need them. Secure verification of employment systems protects working and saves governments money.
Quentelle is the Gold Standard in VOE and Reference Checking Verification
When you use Quentelle, you can save time and reduce administrative costs by automating your verification of employment using our VeriSafeJobs technology. We put a strong focus on your data’s security and privacy and are compliant with all CCPA, FCRA requirements, and other data and privacy laws.
Do you have questions about navigating the world of employment verification and cybersecurity in this world of growing online threats? Reach out to us. We’d be happy to answer your questions about cybersecurity and employment verification.