Fraud Prevention Background Check Prevents Loss

[ser...@informednetworks.com]

Earlier this year Informed Networks Corporation
(http://www.BackgroundNow.com) introduced its fraud prevention
background check program for corporations and financial institutions.
The background check program was designed to detect fraud risk factors
that are overlooked by companies and banks extending credit or loans.
"Banks and corporations rarely assess risk factors beyond financial
statements, credit reports, and references. We have found, through our
experience evaluating fraud, an obvious correlation with officer's
backgrounds and corporate fraud. So, we developed a program for our
customers that begins with a detailed evaluation of company and officer
identities, followed by a search for possible fraud risk factors. For
example, one of our corporate clients gained a new customer that
contracted for services to bill at the rate of $150,000 per month. As
the first invoice was coming due they ordered a background check from
us on the company and its president. We located records indicating that
the company president had been convicted of felony 'theft of
services'. The new information from our background check changed the
risk profile and empowered them to act to minimize potential losses.
Our customer did not collect the $150,000 invoiced for the first month
of services, but it acted to prevent further losses. When you consider
the practice of carrying customer receivables 60-days or longer, the
total loss could have exceeded $450,000, and was minimized at a cost of
$100."