Not just fraudulent employees, but fake companies are also a reality

fake companies

As a part of our background check process, we analyse some data to ascertain if there is any discovery of fraud or misrepresentation that is normally not traceable.

During one such analysis, we found something fishy with regards to a company. We were interacting with this company for the prior employment checks of their past employees. This company was unknown and quite a few prior employment checks had to be carried out with this company as we were getting a good number of cases of people who had left this company.

On scrutiny, we captured the profile of the unknown company.

  • 15 lakhs was the paid-up capital which creates an impression that the company is genuine.
  • The company was in existence for the past 16 years.
  • The company operated on a 2,500 square feet commercial space in a posh locality with an employee strength of around 15 people only.

The prima facie investigation led us to believe that the company was genuine however, on further investigation, we found that:

  • The company had appointed four HR managers which came to light on scrutiny of appointment / relieving letters related to the same period.
  • In two months fifteen employees were relieved from the organization and they had joined our customers when the entire workforce itself consisted of fifteen people.
  • Employee ID generated were not in sequential order. For example, a candidate who had joined the company in Aug 2019 was assigned the employee code as 1130, and the candidate who came onboard Sep 2019 was assigned 883 as the employee code.
  • All relieving letters were signed as “For HR manager - HR department.”
  • Even though the company records revealed that the company was in existence for more than 10 years, the website of the company was just two years old.
  • The website did not have the details of the management team which is the type of information a good website will contain.

Given the above findings, the employer was categorized as a SUSPICIOUS employer.

The above findings were presented to our customers and they were appreciative of our efforts and findings.

BEWARE of the prior employment details, a mere letter of confirmation may not be good enough in some cases.

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