Pasa shares pre-employment fraud vetting guidance

The Pensions Administration Standards Association (Pasa) has published guidance on pre-employment vetting after being made aware of cases where fraud was undertaken or assisted by employees of administrators.

The association explained that there had been instances of people deliberately gaining employment with an administrator with the specific intention of committing fraud, warning that administrators are "inevitably" going to be targeted by fraudsters in light of the important and high value work they undertake.

However, it emphasised that there are pre-employment vetting steps that employers can take when hiring help protect against this problem.

In particular, the guidance, produced by Pasa’s Cybercrime & Fraud Working Group, outlined the type of checks that can be carried out and the information that can be verified by employers, rather than what should be done in every case.

It suggested that a lot of information can be lawfully obtained from the public domain, and used to verify the information provided by the candidate and to check the suitability of the applicant for a position carrying a higher level of risk.

Examples of information administrators could consider undertaking verification checks against included the associations of the individual concerned, such as employment history, residency, including electoral registration, and financial, such as bankruptcy records.

However, the guidance clarified that candidates should also be provided with the opportunity to respond to any information sourced online.

Pasa Cybercrime & Fraud Working Group chair, Jim Gee, commented: “This guidance indicates the types of checks which can be carried out and the information which can be verified, rather than what should be done in every case.

“Administrators are responsible for ensuring any checks and vetting are proportionate, necessary and relevant to the level of risk associated with the position being recruited and carried out in accordance with applicable law.

“If you’re unsure of what checks you can legally undertake and what information you can legitimately process as part of your verification process, you should obtain expert legal advice. There are also various professional bodies which provide detailed guidelines on pre-employment checking.”

    Share Story:

Recent Stories

Making pension engagement enjoyable through technology
Laura Blows speaks to Nick Hall, business development director and Chartered Financial Planner at UK-based Wealth Wizards about the opportunities that technology provides for increasing people’s engagement with pensions and increasing their retirement wealth.

ESG & DC – creating the right tools
In the latest of our series of Pensions Age video interviews Francesca Fabrizi, Editor in Chief of Pensions Age is joined by Manuela Sperandeo, Head of Sustainable Indexing EMEA, BlackRock and Mark Guirey, Executive Director, Asset Owner and Consultant Coverage - MSCI to discuss some key trends of ESG investing among UK pension funds today. Please click here for an edited write-up of the video

Multi asset credit
Pensions Age editor, Laura Blows, discusses multi asset credit with Royal London Asset Management senior fund manager, Khuram Sharih
Pensions Age podcast: buy-outs and buy-ins for member and employer nominated trustees
Pitfalls and good practice when approaching insurers with Pensions Age editor, Laura Blows, Martin Parker (Just Group) and Akash Rooprai (ITS)