Financial Services Industry Cleans Up Its Act

August 2007

Job applicants to the nation's banks and financial institutions are less likely to lie on their job applications compared to a year earlier, according to research released today by pre-employment screening firm Powerchex.

The research revealed a turn-around in the trend in applicant fraud. It recorded a 18% drop in major discrepancies on CVs and applications submitted between July 2006 and June 2007 when compared to the same period the previous year.

This indicates that more stringent vetting procedures are at last having an effect, not only in catching dishonest applicants, but also in deterring them from being dishonest in the first place.

"This research shows recognition by applicants that misrepresentation on CVs is no longer viable," said Alexandra Kelly, managing director of Powerchex.

"More rigorous vetting procedures are allowing companies to clearly discern an applicant's past and then make an informed choice about whether that person is right for their organisation."

In 2006, reports such as BDO Hayward's Fraudtrack 4 and CIFAS's (the UK's Fraud prevention service) The Enemy Within showed a steady increase in CV embellishments. That the trend is now changing is good news for HR departments in the financial services.

"Fraudulent applicants who misrepresent their educational qualifications and job experience cost the financial services industry millions of pounds a year," continues Kelly.

"Banks and financial institutions have a duty to prevent fraudsters from having access to our personal data and it's good to see progress being made."