Employment Verification

Some common reasons for requesting employment verification include:

• Before issuing a lease (when property owners need to do a background check).
• For processing immigration documents (to check proof of income and work history).
• Before offering a loan (banks and loan service providers need to comply with KYC/AML rules).
• For setting a fair salary offer (as a way to check if the new salary is within the applicant’s pay range). 

The employment verification process is based on two goals:

• To confirm the accuracy of the information the potential employee provided.
• To help third parties verify that the person is employed by the company they claim. 

This process also helps prevent fraud and works as an extra risk mitigation measure, reducing the chances of partnering with a person who uses a stolen identity or alters their work history and credentials. So, employment verification helps spot the key red flags: employment gaps, fabricated references, and other discrepancies. 

For instance, a bank can request employment verification before granting the customer a green light to open an account or approve a loan. Another example is when a government agency can ask for details, such as the person’s salary, job role, etc., using employment verification. The same principle goes for a standard situation where a potential employer may inquire about the person’s past work performance and salary history.

An employment verification letter, also known as a proof of employment letter, is a popular verification method to check and confirm a potential employer’s employment status. For example, a third party can request a proof of employment letter from a person’s employer, which includes details such as their salary, job title, responsibilities, and work history. The letter should include all information matching the person’s resume, including accurate employment dates. However, it depends on the third party’s requirements and what the organization allows to share.

Remote work fraud is a form of fraud when a bad actor uses a stolen identity or forged details to get a new remote job. This is dangerous in terms of losses, such as wasted time on training or the recruitment process. Unknowingly hiring a fraudster can also result in further crimes, such as internal breaches or stolen sensitive information. After onboarding and accepting such an employer, it’s hard to detect fraud, and sometimes, it’s too late for the company to take legal action. For this reason, companies use employment verification. 

There are several methods that can be used for building a proper employment verification process. 

Common ways for verification consist of the following:

• Document verification. This can either be government-issued ID documents (such as a passport), or other extra documents, like an employment record or bank statement. 
• Biometric verification. This is another later of verification, where the person’s face (their biometrics) is compared to the portrait on their ID document. 
• Database verification. This involves cross-referencing the individual’s personal information with another, reputable database, often managed by a government agency to ensure that the information isn’t forged.