In this Economic Crisis going on today we have seen an alarming record levels of employee fraud, information and property theft, easy access to fake credentials, and conflicts and violence in the workplace. Accordingly, Kevin Connell has organized a “Complimentary Webinar” for HR Managers, Business Owners and CEO’s of companies across North America. In the webinar this Friday August 20th, the webinar will address the issues of employment background checks, employee fraud, resume fraud, and diploma mills.

1. Smoke, Mirrors and Fake Credentials
August 20th, 2010 2-3pm
Kevin Connell
CEO & FounderAccuScreen.com
with Guest W. Barry Nixon, SPHR
Executive Director for The National Institute
for Prevention of Workplace Violence

2. Your Presenters
Kevin Connell CEO & Founder of AccuScreen.com
Former Director of the National Association of
Professional Background Screeners (NAPBS)
Co-Author, Secrets of Peak Performers
Guest Speaker - W. Barry Nixon, SPHR, COO,
PreemploymentDirectory.com
Co-Author, Background Screening &
Investigations: Managing Hiring Risks from HR and
Security Perspectives (available on Amazon.com)
Co-Chair, International Committee, National
Association for Professional Background Screeners
(NAPBS)

3. Contributors to the Problem

4. Environmental Dynamics
High unemployment, mortgage crisis and
mass layoffs
Record levels of employee fraud,
information and property theft
Easy access to fake credentials
Conflicts and violence in the workplace
Increased need to hire the right person

5. Employees Facing
Increasing Financial Hardships
High Unemployment
9.3% of the labor force - Not seasonally adjusted - May 2010
(Source: U.S. Bureau of Labor Statistics)
Mortgage Crisis
Foreclosure filings were made on 322,920 U.S. properties in May
while Bank repossessions hit a record monthly high for the second
month in a row, totaling 93,777--up 44% from last year. (Realty Trac
)
Mass Layoffs
In May, employers took 1,412 mass layoff actions involving
135,789 workers. The number of events decreased by 444 over
the month, and associated initial claims decreased by 65,081.
(Source: Bureau of Labor Statistics)

6. Increasing Financial Hardships
Increases Risk of Fraud
Employees coping with a spouse who has been laid
off, a sick family member, eroding 401K or a home at
risk of foreclosure are more likely to engage in risky
behaviors to augment their incomes.
Fear is another reason for the increase in fraud.
When companies decide to lay off workers and
employees start to worry, they think of ways to
protect themselves.
As people are put under greater and greater
emotional stress and financial pressures, they may
lose their moral compass and do things and take
funds, data and property that, in normal
circumstances, they might not otherwise do.

7. Fraud is on the Increase
American organizations lose an
average of 7% of their revenues
to occupational fraud.
The cost of fraud in the U.S. is estimated at $6
billion annually.
64 percent -- is committed by employees
Source: Association of Certified Fraud Examiners

8. Fraud:
Any illegal acts characterized by deceit,
concealment, or violation of trust. These acts
are not dependent upon the threat of
application of threat of violence or of
physical force. Frauds are perpetrated by
individuals and organizations to obtain
money, property, or services; or to avoid
payment of loss of services; or to secure
personal or business advantage.

9. Identity Theft Running rampant
Identity theft continues to be the number one
complaint for the seventh year in a row in the
US according to Federal Trade Commission (FTC)
records.
Approximately 12% of data breaches which are
at record levels are malicious.
‘Gigabyte gangs’ placing their own people in
jobs for the specific purpose to steal
confidential information.

10. The Liars Index®
The Liars Index® reached 21.43% for the first
six months of 2010.
"This latest increase in the Index is the
highest in some ten years.“
The current data parallels the increases
during the 2000-2001 recessionary period.

11. Fake Degrees &
Diplomas

12. Access to Fake degrees
Diploma Mills
Estimates are that there are 700 diploma mill
companies in the U.S. and as many as 3,000 mills are in
operation worldwide.
Council for Higher Education Accreditation (CHEA) in
Washington, D.C., maintain lists of accredited colleges
and universities. (Tip: Have your employment screening
firm verify that an applicants degree is from an
accredited school?)
Two types of mills—ones that issue degrees from bogus
or nonexistent schools and ones that sell fake degrees
from legitimate and well-known colleges.

13. Access to Fake Credentials
Verification services
Several degree mills provide official-looking
transcripts and a toll-free number to confirm
attendance and course completion.

14. Diploma Mills

15. Diploma Mills

16. Dear Kevin,
Further to our telephone conversation, I am pleased to be able to confirm the following:
You will receive:
M B A Degree
Your degree package will include:
•* Your diploma
•* A laminated, wallet-sized copy diploma
•* Transcripts
•* Two Letters of recommendations from Professors
In addition, and most importantly, you will receive unlimited support from us, which includes
verification of your credentials to prospective employers.
Your total investment is US $2000.00. (Including your $500.00 discount for the scholarship pro
gramme)However have managed to get you an additional scholarship of $1150,00.Therefore your full
price for the MBA WILL ONLY BE $850
The diploma is patterned after;and looks very much like UCLAs in its design.This diploma as i
explained to you would have been done on line for the last few years and you have now
completed the on line degree.The dates of your graduation will be tailored to your needs.
My phone number is 001 646240 4276
If you have any questions please feel free to call me 24 hours a day or e-mail me at the above
address.
I will phone you in the next half hour. Find attached samples.
Our web site is www.earlstownuni.org
Best Regards
Pete Miles

17. Sample University
Student Name: Degree
Program: MBA
Student ID: Graduation
Date: June 6, 2003
AUTUMN QUARTER 2001
ACC 520 FINANCIAL ACCOUNTING A-
ECO 570 MANAGERIAL ECONOMICS A-
MTH 500 INTRO MANAGERIAL STATISTICS 3.0 A
ENG 510 EFFECTIVE WRITING SKILLS FOR MANAGERS B
WINTER QUARTER 2002
ACC 521 MANAGERIAL ACCOUNTING A
BUS 546 ORGANIZATIONAL BEHAVIOR A
MTH 520 ADVANCED MANAGERIAL STATISTICS A
FIN 531 FINANCE I: ASSET VALUATION, RISK & RETURN A-

18. Study Shows Government Employees
have Bogus Degrees
A 2004 study conducted by the U.S. Government
Accountability Office (GAO) found that 463 federal
employees had received bogus degrees from diploma
mills. Several held sensitive positions that require
high levels of technical skill.
The GAO researchers concluded that the U.S.
government had spent more than $150,000 in tuition
reimbursements to employees receiving fake degrees.
The GAO report went on to state that the problem
could be more pervasive than research reveals.

19. Is There a Problem?
Most HR professionals acknowledge that
degree or diploma mills pose challenges for
employers, but most quickly add that it is not
a problem within their organization.

20. Participant Survey
How many of you have discovered an
applicant or employee that has a fake
credential, e.g., diploma, degree,
certification, etc.?

21. States Outlaw Diploma Mills
In 2003, Oregon became one of the first states to
pass a law making it illegal to use or sell bogus
degrees.
Anyone in Oregon who uses a false academic degree
to obtain employment violates state law and can be
subject to a fine and sometimes imprisonment.
Seven other states followed Oregon’s lead with laws
either outlawing diploma mills or limiting use of
bogus degrees.

22. Texas Penal Code (Section 32.52)
Prohibits the use of fraudulent or substandard
degrees "in a written or oral advertisement or other
promotion of a business;
or with the intent to: obtain employment;
obtain a license or certificate to practice a trade,
profession, or occupation;
obtain a promotion, a compensation or other
benefit, or an increase in compensation or other
benefit, in employment or in the practice of a
trade, profession, or occupation;
obtain admission to an educational program in this
state; or gain a position in government with
authority over another person, regardless of
whether the actor receives compensation for the
position."

23. Fake References

24. Fake References in India
KPMG India identified almost 150 firms that are
fictitious companies.
During our background verification process for
clients over the past one year, we found 250 firms
that fake experience letters, salary slips and
relieving letters to candidates,” added Abhay
Aggarwal, chief executive of Integrity Verification
Services Pvt. Ltd.

25. FAKE REFERENCES

26. FAKE REFERENCES

27. FAKE REFERENCES

28. Background Checks Have Limits
Is it difficult to verify beyond a shadow of doubt
that a company giving a reference is legitimate?

29. Fake Resumes
A fake resume is one in which a specific alteration
of your employment history is made in order to
deceive a human resources person or hiring
authority in order to get hired.
http://fakeresume.com/Introduction_to_a_Fake_Resume.html

30. Access to Fake Resumes

31. Threat Assessment Begins Before
You Make a Hire
According to the SHRM Workplace Violence Survey
the leading motivations for workplace violence are:
#1 Personality Conflict
#2 Emotional problems/mental illness
#3 Family/marital/personal relationship issues
#4 Firing/Termination
#5 Work related stress
#6 Drug/alcohol use
#7 Financial/legal difficulties
#8 Poor performance review
Most of these above behaviors can be detected with
a thorough background and reference check.

32. Protecting Your Company
Against Fake Credentials

33. Crucial Success Factors
“Making the right hiring decisions and reducing
avoidable risk are two of the most crucial
success metrics for employers.”
Background Screening & Investigations:
Managing Hiring Risk from a HR and Security Perspective

34. Verification is Critical
Good source to help is the Council for Higher Education
Accreditation (CHEA) in Washington, D.C. which maintain lists of
accredited colleges and universities.
These list can be very useful when making sure that an applicant or
subsequently an employee has earned a degree from a legitimate
source. The process of checking can save a business thousands of
dollars when reimbursing employees for tuition costs or from
costly mistakes made by someone who has bogus credentials.
A critical step that all businesses need to take is to establish a
written policy clearly specifying that only accredited schools
qualify for hiring or tuition reimbursement. “Employers need to
say upfront and in writing that if the job requires a college degree
that the degree must be from an accredited institution.”

35. Participant Survey
How many of you have a written policy that
requires college degrees and education
certificates to be issued by accredited
institution?

36. One in five employers actually have a written
policy that requires college degrees and
educational certificates to be issued by an
accredited educational institution.

37. The Best Defense, is a Great Offense
1. Verify required education and credentials.
2. Verify degree granting institution is accredited from
a valid source.
3. When verifying education don’t stop your research
just because someone answers your questions on the
phone or responds with a letter.
4. Check schools’ web site for the following:
Tuition is charged on a per degree basis rather than per
credit, course or semester.
There are few or unspecified degree requirements.
The emphasis is on degrees for work or life experience.

38. The Best Defense, is a Great Offense
5. Check resumes and application for these clues:
Out of sequence degrees (e.g. applicant claims to have
a Ph.D, but does not have a bachelors or masters
degree).
A degree earned in a short time period or several
degrees listed for the same year
Degrees from schools in locations different from the
applicant’s job or home.
If an institutions has name similar to a well-known
school located in a different state check its
credentials.
A degree from a foreign university in a country where
the applicant never lived.

39. The Best Defense, is a Great Offense
6. A thorough due diligence on the front end will
save you from problems on the back end.
7. When verifying references call the company’s
general number and ask for the person. Do not
simply call the number the applicant gave you.
8. Use online reference checks to get true
anonymous feedback that is competency based.

40. In Summary
Pre & Post Hire Screening is a critical
step in helping you to select the right
people for your job openings.
Screening helps to mitigate risk of:
Increasing your costs with bad hires
Hiring people with wrong competencies due to use of
Fake credentials
Litigation
Employee Fraud
Identity, Information and Property theft
Workplace violence

41. Please join us next Wed. 8/25 @ 2:00 PM EST for
a Complimentary Webinar:
“Employee Screening Rights: 3 Must Know Rules
to Avoid the Wrath of the EEOC”
800-689-2228 Ext 1100
www.accuscreen.com/media/webinars
Register Today! Limited Space!
Kevin Connell AccuScreen.com
Next Wednesday August 25th
2:00 PM Eastern 11:00 AM Pacific

42. Resource Center
AccuScreen.com- for the FCRA Compliance Guide
AccuScreen.com/ebook - Secrets of Peak Performers
PreemploymentDirectory.com – a comprehensive
source for finding a background screening firm.
Background Screening & Investigations: Managing
Hiring Risks from HR and Security Perspectives, Barry
Nixon and Kim Kerr (available on Amazon.com)
Accredibase – comprehensive database of diploma mills
worldwide; regularly updated
Oregon Student Assistance Commission’s Office of
Degree Authorization – www.osac.state.or.us/oda
US Dept of Education – www.ope.ed.gov/accreditation

43. For more information contact:
Kevin Connell, CEO & Founder
AccuScreen.com
KevinConnell@AccuScreen.com
813-837-1920
W. Barry Nixon, SPHR, Executive Director
The National Institute for Prevention of
Workplace Violence
wbnixon@aol.com