Background Verification in the Banking Industry: Why is it needed and how it’s done

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Background Verification in the Banking Industry: Why is it needed and how it’s done

Because banking occupations require access to financial and sensitive personal information, background verification in the banking industry is rigorous. The banking business in India has been steadily expanding over the last several years.  Rising rural penetration, strict regulatory control, rising disposable incomes, and the spread of internet and mobile banking services are all contributing factors. 

The value of public sector bank assets climbed from USD 1.52 trillion in FY17 to USD 1.56 trillion in FY18, according to an IBEF analysis. Because of India’s liberal regulatory regulations, the insurance market is predicted to reach USD 280 billion by 2020. When it comes to NBFCs (Non-Banking Financial Companies), their lending capacity have increased by as much as 18 percent in the previous five years. The causes for this include leaner cost structures, improved risk management skills, and improved product lines, among others. 

 

However, not everything in our country’s financial industry is perfect. The banking industry is synonymous with cases of identity theft, accounting fraud, asset appropriation, and money laundering. What may surprise you is that insiders are responsible for 50% of all frauds! 

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In 2018, the sector’s disparity rate was 10.13 percent. In other words, the BFSI sector has the greatest rate of persons misrepresenting their qualifications or lying on resumes. 

That is why background verification is vital.

While background verification is becoming common in most industries, banks and financial institutions use them at all levels of their workforce. 

 

Pre-employment background checks are essential in the banking business, where employees manage sensitive financial and personal data on clients, stakeholders, and insurers. Customers’ bank records, passwords required for cash transfers, and business protocol are among the sensitive data. The importance of an ethical workforce in the BFSI sector cannot be overstated. 

 

Naturally, efforts should be made to safeguard the financial facility’s security and repute. Preventative measures, such as personnel background verification, can help to address the trust deficit in this business. 

The Reason:

To guarantee that consumer information is kept safe

A banking facility has access to cash, accounts, and a variety of sensitive papers. They must guarantee that consumer information is kept safeguarded in a world when cyber intrusions and data breaches are common. 

They may double-check the potential recruits’ work history, how compliant they are with banking sector rules, and if they have done the task, they claim to have done by doing a background check. Banking institutions need assurance; otherwise, their reputations and clients are at risk of being defrauded. 

To adhere to the industry's best practices when it comes to money transfer permits

The requirements for acquiring a money transmitter license are stringent. If a financial institution goes through the time-consuming process of obtaining money transfer permits, new employees must be thoroughly scrutinized. 

Failure to do so may result in legal action against the business facility, as well as the loss of their money transfer license. It is simple to guarantee that the candidate has the requisite professional license and clean work history by doing relevant background checks.

To provide an exceptional client experience

Customers place a high value on banking services to meet their financial demands. That’s why it’s critical to recruit people that are naturally smart, pleasant, and problem-solvers. A thorough employee background verification can assist in determining whether a candidate will fulfill not just the company’s but also the customers’ expectations.

How to Do It

The purpose of bank background checks is to ensure that candidates are being truthful about their previous job, educational qualifications, and professional credentials. Some banks examine a customer’s credit history to learn more about their spending habits and tendencies. 

 

The banks must adhere to the Fair Credit Reporting Act (FCRA) and the Equal Employment Opportunity Commission’s requirements at all times (EEOC). Banks in the United States are required to conduct criminal background checks in accordance with Section 19. Before performing a background check for the banking business, the employer (banking or financial institute) must provide the applicant with a disclosure document detailing the consumer report that the employer would get in order to hire them. 

 

The applicant must sign a document acknowledging their permission to a pre-employment background check. 

The majority of firms in the BFSI sector have a background verification policy. It outlines the actions, processes, and deliverables that the applicant will face. 

Conclusion

In banking, where organizations rely on safe and responsible procedures to prosper, hiring trustworthy and competent personnel is critical. Regardless of whether the information gathered from the verification is favorable or negative, the bank should treat the candidate’s data with care and responsibility as an employer. This information has the potential to affect a wide range of individuals, including the candidate’s professional life and the reputation of the company. This component in the talent management process necessitates careful consideration at all stages of the lifecycle. 

Fortunately, technological solutions are always improving to make this process easier, more dependable, and less prone to mistakes.

How can MIMO help?

By partnering with a third-party background screening company, you will be able to receive all the information you need quickly. Working with a reputable background check firm will save you time and money while also ensuring that you remain compliant in the customer screening process. 

 

The simple truth is that recruiting the best personnel is a rigorous competition, and you must be at the top of your game to attract and keep the best. Making the right hiring decisions will have a significant influence on your business, resulting in higher productivity and decreased turnover. MIMO offers all-inclusive background verification services with a focus on protection to provide you with the most reliable and up-to-date details. 

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Importance of Education Verification Checks in Modern Hiring

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Importance of Education Verification Checks in Modern Hiring

When applying for a job, you will almost certainly be required to demonstrate that you have met a minimal academic requirement. While some positions may just demand a high school diploma, others will require a college diploma or perhaps more. 

 

When writing a CV, be sure to include a list of your academic accomplishments. However, some people, believe it or not, are not always entirely honest. According to one estimate, up to 40% of individuals have lied on their resume, with schooling being one of the most typical areas where people mislead. According to the same poll, 46% of resumes had some type of contradiction between an applicant’s academic claims and their educational institution’s records. 

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It’s no surprise, therefore, that education backgrounds are one of the first things businesses look at when doing background checks on potential employees. 

 

But what would an education verification check on your schooling reveal? What kind of information would your new supervisor be able to obtain? Where should you embellish a little on your resume, and where should you give the truth? We’ll cover all you need to know about education verification checks in this post, as well as how to do your own background check to discover what your future boss could find out.

The Importance of Education Verification Checks

Before you employ, conduct an Education Verification check to ensure that a candidate’s claims about their education, degree, training, or certification are accurate and to identify any potential anomalies. This service, also known as an Education Background Check or an Education Check, is used to verify academic experience at high schools, universities, colleges, and vocational institutions. 

Education verification checks assist you to:

What Does a Background Check for Education Verification Show?

To verify credentials, education verification checks contact the candidate’s universities, colleges, vocational schools, and high schools that include: 

Professional License Verifications: When Should You Use Them?

A Professional License Verification guarantees that the applicant is licensed to operate in a certain occupation and gives the credential title, current status, issue, and expiration dates as some professions require both specific training and a valid professional license. 

It is possible to examine licenses for occupations such as: 

Why Should Employers Verify Education Credentials?

1. To protect against Claims of Negligent Hiring

Employers are obliged to take reasonable precautions to safeguard their business and workers. A small business may be exposed to liability if a new recruit engages in risky behavior or injures a coworker while on the job. Pre-employment screening can help identify warning signs that a person and a position aren’t a suitable match. 

2. Verify that an applicant possesses the necessary certifications

Certain occupations, particularly in the fields of healthcare, fitness, and teaching, need a high level of competence supported by specialized certificates and degrees. If a candidate does not have the necessary skillset to execute the job, the organization may be exposed to a great deal of risk. 

3. Fraudulent Credentials and/or Degrees

Employers may use school verification to ferret out diploma mills, phony academic degrees, and desperate people trying to pad their applications with downright fraudulent information.

4. Feel secure in the knowledge that your organization follows all privacy and data security regulations.

It’s vital to safeguard the confidentiality and security of sensitive information about your applications. To secure data and the sensitive information you receive about your candidates, you need to follow privacy rules and utilize encryption.

How can MIMO help?

By partnering with a third-party background screening company, you will be able to receive all the information you need quickly. Working with a reputable background check firm will save you time and money while also ensuring that you remain compliant in the customer screening process. 


The simple truth is that recruiting the best personnel is a rigorous competition, and you must be at the top of your game to attract and keep the best. Making the right hiring decisions will have a significant influence on your business, resulting in higher productivity and decreased turnover. MIMO offers all-inclusive background check services with a focus on protection to provide you with the most reliable and up-to-date details. 


For more information and to avail of our Background verification services, please contact us at https://mimo-technologies.com/

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How the Gig Economy Can Benefit from Blockchain-Enabled Employee Verification

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How the Gig Economy Can Benefit from Blockchain-Enabled Employee Verification

It’s becoming increasingly important for organizations to maintain the safety and competency of their human resources as their workforce evolves by hiring more freelancers. The recruiting process for freelancers is easier and faster than for permanent staff. Many businesses don’t even have a documented recruiting procedure in place for hiring and managing freelancers. However, as more workers are employed as freelancers, the chance of avoiding the background check increases. 

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With more unidentified persons having access to sensitive data, financial assets, corporate knowledge, and customer records, it’s more important than ever to protect businesses and their customers against data breaches and fraud. Employees are the face of the firm for many companies and online startups. A cab driver or delivery person’s behavior, for example, has a direct influence on the public image of the company they work for. As a result, putting money into a solid background check programme has become critical. 

Traditional Background Verification's Challenges

Traditional verification services providers are also encountering significant issues in performing faultless inspections owing to a lack of reliable data. 

 

Accuracy of data on education credentials, employment experience, and even police verification has become a significant concern. And, on occasion, due to intrinsic obstacles in the process, freelancer data is not accessible in a timely manner. Despite these obstacles, huge firms spend anywhere from $1.5 million to $2 million on the personnel background check procedure. However, owing to financial constraints, small businesses cut corners and do not always complete the strict background check process. 

 

Several organizations do two or three background checks. The entire procedure takes weeks and a significant amount of money. This results in a delayed onboarding process and a negative impact on the company’s bottom line. 

How can Blockchain-Based Employee Verification Benefit Companies?

A blockchain, or distributed ledger, is a system for storing large amounts of data in blocks that are linked to each other without the need for a single administrator. 

Every new addition is verified by all of the nodes on the blockchain. 

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What role does it play in employee background checks?

You can reorganize an employee’s whole CV by saving each experience and certification milestone as a separate block. This is how it will help: 

These advantages can help recruiting managers save time and money. Furthermore, owing to a lack of resources or time, the HR teams will not bypass any background checks. 

Time for blockchain-based employee verification to go mainstream?

Multiple issues in the recruiting process can be solved with an automated and distributed blockchain-enabled employee background verification. 

Employers will be able to hire high-quality employees in less time and for less money if blockchain-enabled employee background verification becomes more widely used. 

What is in store for Freelancers/Gig Workers?

Here’s how it can assist:

Conclusion

Working remotely will become more popular in the coming years as more companies embrace digital transformation. More professionals will work in the gig economy as a result of the goal to “do what you love.” At scale, using a blockchain-enabled employee background verification system can assist freelancers and employees in working in a safe and secure environment. 

How can MIMO help?

Here at MIMO, we are aware of the high levels of transparency, complex legislation, and laws that the financial sector and other industries must adhere to and comply with. MIMO offers all-inclusive background check services with a focus on protection to provide you with the most reliable and up-to-date details. 


With the latest technology in operation, MIMO’s background screening services can be used to perform verification quickly and easily by organizations. Companies need to send a request to MIMO for a background check and they can receive all relevant records without delay. This will help you save a lot of time, which you can then utilize for more productive tasks. 

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5 Common Mistakes in Background Screening and How to Avoid Them

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5 Common Mistakes in Background Screening and How to Avoid Them

The mere notion of mistakes in background checks sends shivers down the spines of most HR managers. A mistake in personnel screening can have serious implications, ranging from disciplinary action to the loss of a potential recruit. Unfortunately, you won’t be able to protect yourself by omitting any job background checks. A bad hiring can expose your company to theft, lost time, and excessive turnover expenses. 

 

Background Screening is an absolute must. As a result, you must use caution when you conduct such checks. Fortunately, the majority of mistakes in background screening are quite simple to prevent. 

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Here are some of the most typical mistakes made during employment screening:

You Don't Have a Screening Policy That Is Consistent

Many errors in background screening may be traced back to one fundamental mistake: 

You took a decision that may be considered discriminatory. In many situations, it’s just an issue of inconsistent procedures. 

 

For e.g.: You may have run a credit check on one accounting applicant but not the other. Perhaps you ran a thorough background check on one candidate while settling for a short criminal report on another. It makes no difference how reasonable your reasoning is. When you subject various candidates to different standards, it always looks bad 

The Solution: Set a standard and stick to it.

Determine what information about a candidate for a given position is absolutely important to know. Do you have a criminal record? What is your credit score? Is there a cultural fit? 

 

Then devise a formal process for vetting each and every candidate in the same manner. Different methods might be established for various roles. However, if two candidates are seeking the same position, you should ensure that they are being reviewed using the same criteria. 

You don't allow applicants to correct background screening errors.

It’s easy to treat a background check report as a yes-or-no question when you’re in a hurry to make a hiring choice. Is the applicant’s record free of blemishes? If the answer is no, they’re out. If yes, they’re in. 

Pre-employment background checks, however, cannot disclose the whole story. 

The Solution: Provide applicants with an opportunity to reply to their screening results.

Asking otherwise potential prospects if they can explain a blemish on their record is always a good idea. Naturally, this adds to your HR manager’s workload. In reality, because follow-up takes time, failing to ask questions is probably a typical oversight. 

You Failed to Get Permission

Before performing background screening, you must get written authorization. This may seem too apparent to include among the most common background screening errors, but it does happen. 

The Solution: Ensure that the screening process cannot begin until your prospective employee gives written consent.

Asking for too much

Few employers are so keen to safeguard their company that they perform every background check they can think of. Imagine being pulled over for speeding and being asked for your driver’s license, registration, college transcript, work history, and three-character references. You’d most likely get defensive. You could also consider it a violation of your privacy. The majority of the documents had nothing to do with the officer. 

 

If you ask to view your credit report and driving record, a graphic designer is likely to feel the same way. It’s like digging into someone’s personal life for information that has nothing to do with the candidate’s potential to serve your organization.

The Solution: Only look at records that are relevant to the position—no more, no less.

Take a step back and consider what you truly need to know about a prospect before you can trust them with your organization.

Conducting Social Media research personally

Of course, one of the most typical mistakes in background screening would be using social media. Is there any element of modern professionalism that hasn’t been impacted by social media? Many companies, understandably, use social media to assess candidates for cultural fit. It’s reasonable, but it’s also inconvenient. Why? 

 

Because social media has a lot of information you don’t want to know the information you couldn’t lawfully question in an interview. You could find out about a candidate’s age, religion, sexual orientation, or political views. You may learn whether they have children or if they’ve had any recent health problems. Anyone would have a hard time proving you discriminated against them based on this information. However, as a general rule, it’s preferable to stay away from acquiring this information while making recruiting decisions. 

The Solution: For cultural fit tests, use a professional employment background screening agency.

An employment screening agency can assess a potential hire’s character objectively. They can give data that helps you to make informed human capital decisions while concealing information that could lead to unconscious prejudice. Furthermore, when it comes to human capital due diligence, a professional background screening business is likely to be more experienced. It is, after all, what they do on a daily basis. They understand what to search for, where to look for it, and how to interpret the information. 

Professionals should handle social media screening and other cultural fit studies. 

How can MIMO help?

By partnering with a third-party background screening company, you will be able to receive all the information you need quickly. Working with a reputable background check firm will save you time and money while also ensuring that you remain compliant in the customer screening process. 

 

The simple truth is that recruiting the best personnel is a rigorous competition, and you must be at the top of your game to attract and keep the best. Making the right hiring decisions will have a significant influence on your business, resulting in higher productivity. MIMO offers all-inclusive background check services with a focus on compliance adherence to provide you with the most reliable and up-to-date details. 

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How Technology is Revolutionizing the Employee Screening Process

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How Technology is Revolutionizing the Employee Screening Process

Is it necessary to digitize personnel records? If that’s the case, how can it be of assistance?

Digitalization of data may be extremely beneficial in one area, namely conducting background checks on prospective workers. According to a recent poll done by EY, organizations may use technology-driven tools and solutions to complete employee screening in the wake of the Covid-19 epidemic and shutdown.

An online poll was used to interview top executives from HR departments around the firm. According to the findings, 68% of respondents had difficulty conducting background checks during the lockdown. 

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Technology has influenced nearly every aspect of our lives today, so it’s no wonder that it’s changed the way employee screening is conducted. The speed with which background screening can be conducted is one of the most important effects of technology. What used to take days, weeks, or even months to properly examine may now be found practically immediately. 

 

Individuals, small companies, and others who would have found the processing time and expenses prohibitive in the not-too-distant past now have the capacity to perform simple employee screenings thanks to technological advancements. 

Background Verification Benefits from the Technological Revolution

A HR department’s major job is to find and hire qualified and dependable employees for the firm. Employee Screening has been totally transformed by modern technology, making the process of recruiting new employees far less labor-intensive. If a recruiter begins reviewing a large number of applications and then verifies the given information, it may quickly become a tedious and time-consuming process, causing them to overlook a suitable applicant. So, by incorporating cutting-edge technology into the recruiting process, a firm may not only improve its efficiency but also save a significant amount of time. 

AI and Machine Learning

Employee Screening has been reimagined thanks to artificial intelligence (AI) and machine learning. The advanced algorithms can scour a much bigger dataset for links that can be used to piece together a coherent background report from sources all around the country and the world. 

 

Machine learning lets the computer “learn” as new information is absorbed, and AI can detect trends and patterns. The algorithms can then take the massive amount of data, put it into pre-defined data points, and spew out results that are simple to read and comprehend. 

 

People-oriented research has nearly vanished from the employee background screening process, leaving people free to decide how information should be presented and used rather than sifting through countless databases in search of answers. 

Predictive Technology

Employee screening using predictive technology is a cutting-edge use of technology that has been available for a long. The underlying idea is that by combining AI and machine learning, a person’s background knowledge may be used to generate reasonably accurate predictions about future behavior. 

 

The programme, which comes in a variety of flavours, detects potentially dangerous behaviour and assesses the risk it poses in various circumstances. For example, the predictive analysis for someone looking into a possible child care provider will differ from someone looking into the same individual as a potential manufacturing machine operator. 

 

Concerns about bias and accuracy have fueled opposition to predictive technology. Despite the fact that firms selling predictive technology describe it as nothing more than a tool to warn potential employers to potential problems, the potential for abuse in how the “predictions” are used still exists. Time and technology, on the other hand, march on, and predictive technology appears to be here to stay. 

Being technologically responsible

Data possesses enormous power; therefore, data privacy is a serious concern. In this sector, digitization comes with the duty of keeping user data secure and safe. As background verification rules and demands change, it becomes an inherent duty of service providers to handle this data appropriately, and all firms in this area must take this seriously. As a result, our area requires robust regulations, data security procedures, and adherence to worldwide norms. 

 

In the verification space, technology’s importance will only grow. Background data intelligence will help employers easily identify genuine candidates and hire employees with proven backgrounds of identity, profile, and reputation as more government bodies, educational institutes, and businesses move toward digitizing their databases and AI-technology becomes more intuitive with machine learning.

 

It may be argued that cutting-edge technology such as Artificial Intelligence and Machine Learning will help analysts replicate their cognitive processes by assisting them in identifying connections, deciphering their meaning, and raising red flags as needed. Data may be gathered from a variety of places online, including social media, blacklists, negative media, court records, and other internet platforms. 

 

This is the era when technology is dictating the process of employment background checks and how they should be used. So, like every other industry that technology has transformed, background screening will experience a transformation, although for the better, thanks to the tremendous power of technology! 

How can MIMO help?

With the latest technology in operation, MIMO’s background screening services can be used to perform verification quickly and easily by organizations. Companies need to send a request to MIMO for a background check and they can receive all relevant records without delay. This will help you save a lot of time, which you can then utilize for more productive tasks. 

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How Motor Vehicle Record Background Check can assist your organization on a safe journey?

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How Motor Vehicle Record Background Check can assist your organization on a safe journey?

Is it necessary for your staff to utilize vehicles in order to do their jobs?

If you answered yes, you must make sure that anyone driving on your behalf has a clean driving record. To do so, you must conduct annual motor vehicle record (MVR) checks on all of your drivers. 

Unsuitable drivers can be removed from your payroll, saving you time, stress, and money.

But what is a motor vehicle record? 

Let’s Find Out. 

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What Is Motor Vehicle Record Driving Record?

An MVR, or motor vehicle record check, is a record of a person’s driving history. Simply told, it refers to the pertinent information regarding a person’s driving history, such as license class, endorsements, restrictions, standing, suspensions, and expirations. 

 

Furthermore, while driving, a motor vehicle record includes tickets, traffic offences, and criminal convictions. Let us explore why an MVR is important for a company. 

Why Are Motor Vehicle Record Checks Important?

Wondering how a motor vehicle record check can benefit your company and those others on the road?

Here are a few reasons to convince you: 

Brand protection

When it comes to brand reputation management, you must always be alert. Swift and preventive capabilities are critical for protecting your company’s hard-won brand reputation and image. 


Your management team can stay one step ahead of any potential damage to your brand image by doing periodic motor vehicle record checks. 

Safety

Above and beyond the other advantages, you have the option of removing a potentially dangerous driver from the road—temporarily or permanently. So, why not use an MVR check to make the roads (and, as a result, the people) safer? 

MVRs provide details on a person’s driving behavior and how they will drive on your behalf. Certain employers think that a person’s personal driving habits have no influence on how they drive a work car. 

Others, on the other hand, believe that if a driver engages in unsafe behavior in their own vehicle, they will do so in the business vehicle as well. Increased traffic violations, avoidable accidents, insurance expenses, and other personal problems may result as a result of this. 

However, you must consider if a person would be more cautious if driving a business vehicle. Or would they be able to flip between several different driving styles and attitudes? We believe it makes perfect sense in this situation. When judging a driver’s record, you must exercise extreme caution. 

What do employers stand to gain with an MVR check?

Employers often use an MVR background check to establish how qualified and responsible an applicant is for a job that requires a lot of driving. Employers hire employees to drive for their firm or organization when they fill a driving role. As a result, the employer will have some responsibility for the driver’s actions behind the wheel. 

 

Hiring a driver with a history of license suspensions or a long list of traffic violations, or whose license does not fit the position’s criteria, is a legal, financial, and public image risk for a company. Employers will look for warning signs that indicate a candidate should not be trusted with a company car or the responsibility of representing their brand on the road. 

 

Is your driver’s license valid, or has it expired, been suspended, or been revoked? Is the driver qualified for the job if it requires a commercial driver’s license or a higher level of licensing class or endorsement? Has the motorist been in a high number of accidents or received a high number of speeding tickets? Has the driver ever been convicted of driving while intoxicated or other offences behind the wheel? 

 

These and other issues can be answered by an MVR check, which gives an employer a complete picture of the candidate and how responsible he or she is as a driver. 

How to conduct an MVR check:

Working with a reputable background check business is the best approach to obtain a candidate’s motor vehicle record. Background screening companies not only know which databases to examine at the Department of Motor Vehicles, but they also comprehend the particular “language” of driving record reports. 

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Why Effective Background Checks for Small Businesses are necessary

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Why Effective Background Checks for Small Businesses are necessary

It is a known fact that small businesses don’t employ as frequently as major corporations. When hiring, each new hire must be a good fit and when you bring a new member of your team on board, you should do so with an adequate amount of informationYou’ve worked hard to create your company and make a reputation for yourself. Hiring the incorrect individual might completely demolish all you’ve built. Fortunately, you have the option to do background checks on anyone you are thinking about hiring.  

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So, how can small businesses ensure that they employ the best and most cost-effective background checks?

Create a Background Screening Policy

Creating a standard by which to perform background checks is one of the simplest methods to save money on background checks. Background checks for small business should include: 

Working with a Professional Background Check Partner:

Because small businesses do not recruit as frequently as major corporations, it is critical to collaborate with a skilled background screening provider that will be a valuable partner. Here are some other requirements for a reliable background screening partner: 

Because every business’s needs are unique, it’s critical to choose a background check provider that’s right for you. Make a list of various background check choices and then select which one is ideal for your company. You can begin with the following checks:

Now, let us look at some of the reasons that make background checks for small businesses necessary:

Saves time and money

Hiring the incorrect employee as a small business owner can result in not just wasted compensation costs, but also time spent searching for and interviewing fresh prospects. 

 

Most small firms do not have the resources to go through lengthy litigation proceedings as a result of careless hiring, according to research. By properly conducting background check services, you can protect yourself from the unforeseen costs that can arise from non-compliance with legal rules pertaining to background checks.

A fair scrutinization of facts in the resume

As a small business, you want to hire someone who is trustworthy and who will fit in with your team. However, because people frequently lie on their resumes, it is difficult to determine whether the candidate is trustworthy. By conducting a background check, you can completely evaluate all of the information offered by the candidate in the resume, allowing you to make an informed decision. 


Only make a hiring decision after completing a thorough background check on the prospect. This will avoid the embarrassment of hiring the wrong person for your company and will also give you a good sense of whether the candidate is a good fit for your small business or not. 

Keeps your workplace safe and secured for existing employees

It is critical to guarantee that the workplace is a safe and secure place to work when working in a small business’s closely knit work environment. Workplace violence can have a negative impact on the entire working environment in small organizations. 

 

This emphasizes the need of hiring a professional background check service that can assist you in selecting the correct applicant by doing a criminal background check and an identity check to maintain your workplace safe and secure for current employees. 

Keep up with the legal compliance:

Because small firms do not hire as regularly as large enterprises, they may not be up to date on the current background check regulations. However, not knowing the laws can land your business in hot water while doing the checks. As a result, it is critical to seek the assistance of background check professionals to: 

How can MIMO help?

A professional background check service will provide you with appropriate guidance in selecting the diverse types of checks for the selection of a certain role. 

 

With the latest technology in operation, MIMO’s background screening services can be used to perform verification quickly and easily by small businesses. Businesses need to send a request to MIMO for a background check and they can receive all relevant records without delay. This will help you save a lot of time, which you can then utilize for more productive tasks. 

 

Working with a reputable background check firm will save you time and money while also ensuring that you remain compliant in the customer screening process. 

 

Here at MIMO, we are aware of the high levels of transparency, complex legislation, and laws that the financial sector and other industries must adhere to and comply with. MIMO offers all-inclusive background check services with a focus on protection to provide you with the most reliable and up-to-date details. 

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Role of employee background verification companies in pre-employment screening

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Role of employee background verification companies in pre-employment screening

Background verification, often known as a background check, is an in-depth inquiry into many areas of an employee’s background, such as job history, public (criminal) records, residence verification, and educational qualification. The best Background Verification Companies in India mostly provide pre-employment background checks in India for both large and small businesses. 

 

The most effective Background Check Companies in India serve as third-party agents for businesses and organizations. In India, they primarily conduct pre-employment background checks. Employers in India rely on the resumes supplied by prospective candidates. However, most resumes contain inconsistencies. According to a 2017 AuthBridge poll, one out of every six job seekers lie on their CV. 

 

 

According to an AuthBridge analysis, the number of candidates with false CVs has increased over the last three years. The extent to which bogus resumes are on the rise poses a significant threat to employers. The top verification businesses in the globe have the enormous task of assisting the company in making the right employment decisions. 

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This is why a pre-employment background check in India is such a vital requirement before hiring.

When recruiting, a corporation is constantly at risk because the employer is liable for the activities of the employees. The finest background check businesses in India conduct a complete background check on the candidates, reducing risk. 

 

Candidates having a criminal history will jeopardize the company’s reputation as well as workplace safety. This should act as a motivator for employers to contact the best background verification businesses in India. 

 

 An in-depth pre-employment screening can assist preserve the company’s brand from unfavorable publicity caused by scandalous workers. The top employee background verification companies in India assist employers in selecting the best candidates for the job. 

The top employee background verification companies in India must do thorough research into these key components of the candidate.

Public records:employee background verification

Public records:

such as criminal offences, can be retrieved through courts of law and law enforcement organizations. This will ensure worker safety if a thorough background check is performed. It is also critical that the values of the employee and the organization are compatible with one another.

Educational qualifications:

Educational qualifications:

To check that the applicant’s educational qualifications are authentic, the employer may contact the college/university from which the candidate graduated. The credentials listed on the applicant’s resume are scrutinized. Aside from the qualifications, the employer may also question about the applicant’s overall conduct. 

Work history:

The employer can call the applicant’s prior employer to learn more about his or her work ethic, job role, job performance, length of employment, and overall conduct. 

Address verification:

Address verification:

Most background check organizations deploy a team of investigators to the applicant’s physical location. They may also consult with the applicant’s neighbors to get vital information. If the address turns out to be a forgery, it demonstrates the applicant’s determination to conceal his or her previous identity. 

Advances in digital technology are assisting Employee Background Verification Companies in India.

Aside from the CV, employee background verification companies can check the candidate’s online information. Furthermore, the Government of India has supported the background verification process by creating digital outlets where information is stored. 

 

Almost all information regarding the candidate is available in the Aadhar Verification, from residence address to biometrics. The National Academics Depository (NAD) was established to digitally store academic records. This aids to eliminate fraudulent practices such as faking certificates and marksheets. 

The government’s NSR (national skills register) is the largest database for working professionals. This makes it easy for businesses to verify the information provided by their employees. Because of technological improvements, it is simple for the top background verification businesses in India to collect information online. 

 

Social media is also an essential tool, and background verification companies in India make extensive use of it. This vital technology is used by the world’s best background verification companies to map out valuable information about personnel. Background check businesses can calculate the applicant’s interests, participation, actions, and affiliations. 

Background Verification Process in India

In India, background checks are performed either by the company or by third-party agencies. Large corporations or organizations engage the top employee background verification companies in India to do pre-employment background checks. 

 

Smaller businesses normally undertake the verification themselves with the assistance of an HR team. The employment verification process is determined by the many norms and the type of investigation required. 

A detailed report is supplied to the employer once the background verification company has completed the background verification process completely. After reviewing the complete report, the employer will decide whether or not to hire. In the event of a post-employment verification, the employer will decide whether or not to keep the employee. 

 

The background verification process typically takes 3-10 days; however, it may take longer if the background verification provider wishes to conduct a thorough background check. 

Top 10 Background Verification Companies in India

India is the world’s fastest expanding economy, bringing various firms and industries to the forefront. As a result, this has immediately paved the way for the establishment of a slew of background verification firms in India. 

 

Today, both large and small organizations have recognized the need for an efficient pre-employment background check system in India, which has resulted in companies trying to be the best background verification company in India. Here is our pick of the top 10 Background verification companies in India: 

CFirstCorp

CFirst Corp offers a cost-effective and personalized background check solution via an industry-leading, user-friendly web-based system. They are also an ISO 27001:2013 certified firm.

Corporate Investigation India

Corporate Investigation India provides pre-employment background checks, acknowledging the critical necessity to screen future employees at all levels. Other checks include the verification of white papers/documents, tenant screening, and drug testing. CII operates globally in accordance with the norms and regulations in effect in that jurisdiction.

JustVerified

JustVerified is India's first background verification company with a mobile application and a web-based application, providing clients with a convenient way of authentication and reliability.

The Fourth Force

Fourth Force ranks among the top ten finest background verification firms in India as a professionally managed background verification company with a staff of 100+ educated specialists delivering fair and dependable services in the validation of available information.

Sleuths India

Sleuths India is well-known for providing unrivalled investigation services for individual cases, company cases, debtor concerns, pre-employment and post-employment checks.

IBC

The IBC is run by professionals with vast expertise in the global screening sector. They are also an ISO 9001:2015 and ISO:2015 certified organization.

iCrederity

iCrederity's goal is to provide a standard platform for background verification based on authentic credential analysis that is accessible globally and supported by a strong network.

iChek Services

With over ten years of expertise in pre-employment background checks, iChek has a wealth of industry knowledge.

SecUr Credentials

SecUr Credentials Ltd. is one of India's major background check firms, having pan-India coverage and global operational capabilities.

Prompt Personal

Prompt Personal is one of India's leading HR solutions providers, with over 22 years of expertise.

This is the era where technology is significantly affecting the method of employee background checks and how they can be used. So, like any other industry that technology has transformed, background screening will transform, but for the better, thanks to the immense power of technology. 

 

With the latest technology in operation, MIMO’s employee background screening services can be used to perform verification quickly and easily by organizations. Companies need to send a request to MIMO for a background check and they can receive all relevant records without delay. Working with a reputable background check firm can help save on time and money while also ensuring that the company remains compliant in the customer screening process. 

 

Here at MIMO, we are aware of the high levels of transparency, complex legislation, and laws that the financial sector and other industries must adhere to and comply with. MIMO offers all-inclusive background check services with a focus on protection to provide you with the most reliable and up-to-date details. 

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How Background Verification Checks work in India

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How Background Verification Checks work in India

Background checks are not a service that is “one size fits all.” In fact, it is strongly encouraged that specific searches be conducted by certain sectors based on the positions they fill. 

In addition, to the normal background check for entry-level positions, employers must identify each position within their business. Any unique industry-related background checks they feel would help them make an informed recruiting choice (i.e., criminal background check). 

The industries that use background checks and searches and how each industry might profit are mentioned here. A company needs to avoid this type of terrible hiring. Many organizations include a background verification check in their hiring process to ensure they choose the right employees. Organizations like Transportation, Educational, Financial Services, Healthcare, Retail, Non-profit organizations, Staffing, Technology, Childcare, Financial institutions, Residential and Commercial living, Tenant verification, etc., have a greater need for background verification. These organizations are more reputable among the people, and hiring the wrong employee can ruin their reputation.

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Profile verification during Customer onboarding

In order to know your customer’s backgrounds, banks and other financial institutions must confirm the identity of their customers. Here’s how to make these quickly and precisely. 

In addition to requiring compliance with international legislation, customer verification processes assist banks in evaluating potential legal risks associated with conducting business with potential customers and other cooperants.  

Customer verification processes are generally used when :

To make sure that their customers are who they say they are, banks and fintech use a process or combination of protocols. This process enables banks to confirm the legal status of prospective customers, whether they are individuals or companies, through appropriate and significant papers. 

Despite the best efforts of customer identification procedures, it does occasionally happen that one can falsify documents, or firm ownership can be concealed via shell corporations. 

There are emerging companies that can assist in preventing these particular types of events from happening, even when consumer verification methods are rigorous. 

Customer due diligence during a business partnership

Companies must perform CDD (customer due diligence) when creating a business partnership. For instance, businesses must ask for and confirm specific information before forging a relationship with another organization. 

Certain regulators permit a streamlined investigation known as Simplified Due Diligence (SDD) when there is a low risk of money laundering. Businesses may need enhanced due diligence, or more thorough verification, in situations with increased risks. 

Businesses are not usually required to undergo the entire verification process by financial regulators. SDD is an excellent option for low-risk clients, like well-known governmental entities or private individuals with steady funding sources. 

The CDD process has been divided into three parts :

  • Step 1: Obtain data

  • Step 2: Selecting the suitable due diligence path

  • Step 3: Complete Observation

Although CDD criteria vary per industry, they are generally similar. To fulfill AML (anti-money laundering rules) rules and reduce the risks associated with fraud, CDD makes sure you are aware of your business partner‘s identities (in particular, by checking the authenticity of provided documents). 

Third-party verification is the best option for companies that onboard businesses. It cuts onboarding time to a few minutes without the need to add more staff to manage the process and boosts conversion rates. 

Businesses can select between regular, enhanced, and simplified due diligence based on what they know about the business partner. For instance, it is necessary to acquire original or certified copies of the records that attest to the business’s legal foundation and shareholders to gather information about a client that is a company, including information on beneficial owners.

Why is Background Verification Important for Customers?

Taking everything into account, you must be careful in your onboarding process of your customers, and you can only do that by thoroughly investigating each customer’s background. 

 

Therefore, it is best to do background checks to make informed decisions unless you want workplace safety jeopardized or to go through the arduous customer screening procedure. Of course, it’s the most effective strategy for you! 

Why is Background Verification Important for Business?

Background verification is necessary for every industry to prevent fraud. However, the banking and e-commerce sectors are where it matters the most because : 

Financial sector

Businesses in the financial sector want to do customer profile verification for both clients and staff. The organization must also verify people to reduce the risk of account takeover, money laundering, and terrorist financing. 

E-commerce industry

Due to returned orders, e-commerce suffers significant losses each year. A layer of security is added by address verification services to cut down on fraud and stop financial losses for businesses. 

Why is Background Verification Important for Merchants?

Merchants need to know the past of their vendors and business partners. Running a background check helps merchants to ensure they choose a trustworthy and honest business partner.

An unscreened vendor can lead to malpractice or accidents, ruining your customer relationship. Sometimes, merchants choose the wrong partners who were involved in criminal activities and had pending penalties. They may use your money to pay their fines for their illegal activity. Background verification ensures you avoid working with poor vendors.

What Types of Background Verification are Performed in India?

There are different kinds of background verification performed in India, including: 

Address Verification

Running address verification is essential whether the person is from the same city or shifted from another. There are two types of processes for this verification, physical and online address verification. 

 

The process of physical address verification involves a field officer who verifies the candidate’s details by visiting their given address. This process also helps you find whether the person lives at a temporary or permanent address and how many people live at the given address. 

Online address verification processes require verification of government-issued IDs like Aadhaar cards or any other documents. This process is done digitally. An officer will upload the address verification, and the platform will verify its existence.  

Along with address verification, tenant verification also plays a very important role when renting properties to tenants. When legally allowing your home for rent, there are specific procedures to follow. This background check is a step in the rental procedure you take for security. 

Identity Verification

Identity verification ensures a candidate is a real person. This verification process usually involves biometric authentication. It can be done by verifying the unique biological characteristics using government-provided IDs, including an Aadhaar card, a driver’s license, or a passport. It can be done using a few biometric technologies such as retinal, fingerprint, face, and voice recognition. 

 

An alternative way to process this verification is online. However, online identification verification involves many different solutions. One of them is copying CAPTCHA. 

Employment Verification

Employment verification checks the behavior and experience of an applicant at their previous workplace. The process of this certification is easy. Companies need to contact previous employees or co-workers of the applicant to check its overall organizational behavior. 

Education Verification

Education verification involves confirming that the education or any degree or diplomas the applicant claims are accurate. This verification process requires confirming the name and registration number of the applicant. It can be done by tallying the applicant’s name with the institution’s record.

 

It also verifies the course details and year of passing. A company needs to hire a candidate with the required skills and knowledge. It also checks whether the regulatory bodies declare the institution fake or not. 

Criminal Verification

A company checks the criminal records of new candidates using data released by the court in the public domain. The process is done under the Indian Contract Act and the Information Technology Acts of 2000 and 2005. A company can search across the records for cases provided by District Civil Courts, High Courts, and Supreme Court. 

 

Social media is also used as a part of criminal verification. An individual can also check the criminal record of a person online. 

Credit Check

A credit check is usually done by organizations dealing with money, like a bank, lender, or service provider. A financial institution can use it to check the financial history of a new applicant.

They can also use an employment credit report that carries all the applicant’s information, like their payment habits, past credit, and type of loans. It helps highlight any debt incurred or any money fraud undertaken by the applicant.  

Business Verification/Due Diligence Verification

Due diligence verification is essential for a company. Many online platforms, like Facebook and Google, ask for Business Verification. It helps online platforms to check your identity as a business entity. 

For business verification, you will need these things : 

All online platforms or business apps have different business verification processes. However, most of them require you to upload all the necessary documents and information about your business.  

E-KYC Solution

A company typically uses these two methods of KYC verification, including : 

  • Digital KYC 

Aadhaar OTP and Aadhaar-based Biometrics do it. This process takes only a few minutes, and you can perform it from home or the office. However, an executive from KRA will visit your home or office for biometric verification. 

  • Video KYC 

This process is similar to digital KYC verification. However, an official from the MSME invited you to a video call. The verifier authenticates the documents and checks the current location of the person. 

 

How is Background Verification Check Performed in India?

A company runs all background verification processes, from address verification to criminal record checks. All the verification processes are tiresome and take a few weeks to complete. A company verifies this information, including identification checks, drug tests, academic record verification, pre-marriage verification, database verification, and professional reference checks. 

Firms search public databases (criminal records) for any evidence of illicit activities. They then dig through your educational records to validate your degrees and certificates. Finally, businesses will check your address. They may even send people to real sites to verify a candidate’s address. However, different companies in India perform background verification checks in various methods. This is how they do it :

The Government's Background Verification Efforts

The government is also stepping up its efforts to prevent you from committing fraud. Here are the new tools it is employing to assist firms in conducting background checks on you. 

Aadhaar authentication

Aadhaar Authentication involves submitting the Aadhaar number, along with demographic information (such as name, date of birth, gender, etc), to UIDAI’s Central Identities Data Repository (CIDR) for verification, and UIDAI verifies the accuracy of the details submitted or the lack thereof, using the available information.

National Academics Depository (NAD)

The government established NAD to digitize your educational records. NAD may also give trustworthy certificates to verified users because they intend to get every education board and institution in India on board. 

National Skills Registry (NSR)

The NSR is the largest database of working professionals that assists businesses in verifying personnel information (if they are registered). 

How long does the background verification process take?

Generally, it takes around 1 to 2 days to get a full report on the background verification of specific services, including employment, financial, identity, and education verification, etc. However, this process takes only 3-4 hours when done with MIMOIQ to verify the information of an application.

How can MIMO help?

This is the era where technology is significantly affecting the method of employee background checks and how they can be used. So, like any other industry that technology has transformed, background screening will transform, but for the better, thanks to the immense power of technology. 

With the latest technology in operation, MIMO’s background screening services can be used to perform verification quickly and easily by organizations. Companies need to send a request to MIMO for a background check and they can receive all relevant records without delay. This will help you save a lot of time, which you can then utilize for more productive tasks. 

By partnering with a third-party background screening company, you will be able to receive all the information you need quickly. Working with a reputable background check firm will save you time and money while also ensuring that you remain compliant in the customer screening process. 

Here at MIMO, we are aware of the high levels of transparency, complex legislation, and laws that the financial sector and other industries must adhere to and comply with. MIMO offers all-inclusive background check services with a focus on protection to provide you with the most reliable and up-to-date details.

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Importance of Background Checks in the Post-Pandemic World

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Importance of Background Checks in the Post-Pandemic World

The pandemic has created a new and expanding set of threats for businesses. Businesses must figure out how to secure their employees, customers, and assets from fraud, theft, and cybercrime in addition to striving for revenue gains in changing landscapes. All of this makes background checks more vital than ever, as long as corporations conduct them per the law. Here are a few of the many advantages of pre-employment screening in a post-pandemic environment. 

 

Against the backdrop of a battered global economy, the pandemic has created economic conditions that can exacerbate theft and fraud both within and outside of a corporation. Organizations can reduce personnel-related risks by doing due diligence on new hiring. Common frauds during the pandemic included fake government or healthcare communications (such as spam or telemarketing calls), phishing websites or emails, phony employment offers, and investments. 

 

A background check can include a credit score, former employment, and litigation in addition to looking into someone’s criminal history to determine someone’s dependability as a possible employee. The premise is that preventing crime is more effective than pursuing criminals. While various standards regulate person screening, the practice increases compliance.

 

According to the 2020 Global Benchmarking Report, regulatory compliance is the second most critical business concern for HR professionals. Furthermore, 44 percent claimed that background screening aided in regulatory compliance. Given that many applications contain discrepancies and fraudulent claims, it aids in placing individuals in the appropriate capacity. Verifying education, training, certifications, and other credentials ensure that a company makes better recruiting judgments. 

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Let me further elaborate on why you need to implement pre-employment screening at your organization. Here are some factors:

Hiring people for critical positions in a company:

Employees who have access to money, financial records, or sensitive databases might cause major issues if they are not trustworthy. An organization may suffer not just from the immediate consequences of any negative employee activities (such as stealing or placing the organization at danger of legal action), but also from the long-term ripple effects of a disrupted work environment, expensive lawsuits, loss of workforce, and, ultimately, the effect on profits. 

Learning from your mistakes:

We all make errors, and most employers will make a bad hire at some point. Indeed, according to CareerBuilder, 75% of businesses have hired the incorrect person for a position. These kinds of errors are avoidable and should not be repeated. Pre-employment screening firms provide the experience and expertise to help you eliminate errors and increase the effectiveness of your hiring process. 

When employee turnover is high:

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A background check can help to keep problematic and perhaps dangerous applicants out of an organization. It enables organizations to find more suited workers who adhere to a code of ethics. Screening also ensures the safety of present employees and management, which will result in less turnover if colleagues are competent and pleasant to work with. 

Methods for employee background verification

You can either delegate the assignment to your organization’s internal team. This may be your human resources department. However, the time needed to finish this activity may be more significant in this scenario and will be determined by the following factors: 

Hiring a background check business is another option for verifying a candidate’s employment history. They are professional businesses that assist you in completing applicant employment verifications in the shortest time. While conducting a background check on your own may take weeks, where a suitable candidate may locate another opportunity due to the slow and tiresome hiring process at your end. On the other hand, a background check company enables you to hire the best talent within 2-3 days, making the task hassle-free. 

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