Who is watching the temps?

August 2007

The Nation's financial institutions may be exposing themselves to potential fraud when hiring temporary workers; a recent survey shows.

The survey, which was conducted by City pre-employment screening firm Powerchex, reveals that 89% of undisclosed criminal records were found on the CVs of temporary employees.

As the City relies more on temporary staff to deliver its back office and administrative work, the findings are worrying. "Most financial firms have become good at screening their top employees," said Powerchex managing director Alexandra Kelly.

"But an army of unchecked workers are potentially inside the nation's banks and financial institutions. And as our findings show, potential fraudsters are more likely to come in as temps."

The UK's financial institutions increasingly rely on temporary workers. It is estimated by the Office of National Statistics (ONS) in March 2007 that up to 176,000 contract personnel work in the financial services.¹ This could cover back office, support and most worryingly, IT staff.

"Computer workers pose the biggest threat," said Kelly. "Their backgrounds should be checked through the same process as anyone else who works in a bank."

Recent high profile cases of misplaced or stolen personal data have increased the focus on financial companies to take all the necessary steps to prevent fraud.

The Financial Services Authority (FSA) states, "there is evidence that organised crime groups deliberately target firms to place staff to commit financial crime, particularly identity theft. Firms must vet staff carefully before confirming their appointment."²

¹ Labour Force Survey, ONS
² Financial Crime Sector Report, The Financial Services Authority