When Should a Company Carry Out Background Checks on a Staff?

Scam! Office Fraud! Thief employees! These are words no business owner ever wants to hear. Mehn, it’s painful to know you’re losing money, but even more painful not to know how or who is responsible. This is exactly why a company must know when to carry out past employment checks and other vital verifications. For every business owner in Nigeria, especially those in fast-paced industries like retail, finance, and tech, understanding the importance of a thorough background check is the key to creating a safe workplace and protecting your bottom line. We will dive into a real-life scenario and provide a comprehensive guide to help you protect your business.

The “Dey Play” Mentality and a Costly Mistake

Omo, a client came to us with a serious problem. Their profit margins were shrinking, and they couldn’t figure out why. For months, they were seeing red, but no matter how many audits they ran, the numbers just didn’t add up. It was clear there was an issue, but they were “dey play” with the hope that it would fix itself. They trusted their staff. They believed they had a safe workplace. Little did they know, their trust was costing them millions.

We came onboard and recommended a full-scale employee background check on their staff. What we found was a classic case of office fraud. One employee was cutting deals with clients behind the company’s back, using the firm’s name to secure contracts and then pocketing a percentage of the profits. This was happening under the company’s nose, a perfect example of how a fake resume and unverified claims can be a ticking time bomb.

The Shocking Truth: Lying on a Resume

During our investigation, we uncovered something incredible. The fraudulent employee had been fired for fraud at his former company, a fact he had skillfully hidden. When asked why he left his previous job, he simply claimed he “resigned because he needed a more favourable working environment.” A plausible lie, but a lie nonetheless. This single lie, left unchecked, cost our client a significant amount of money and nearly crippled their business. This story is a powerful reminder of the risk of recruiting without proper checks in Nigeria.

This is a common occurrence. According to a report by Punch, Nigeria loses over ₦40 billion annually to employment fraud. The deceit is real, and the consequences are dire. A lack of proper vetting can lead to financial loss, reputational damage, and even legal complications. Don’t fall for the trap of relying solely on an interview or a well-crafted fake resume. For insights into what to look out for, check out our blog on Is verifying employee data necessary? Pros & cons explained.

Key Moments to Conduct a Background Check

Background checks aren’t just for new hires. A smart company knows that continuous vigilance is key. Here are the most critical times to carry out a comprehensive background check.

Hiring and Onboarding

The moment a candidate accepts your offer, you should initiate a background check. This is your first and most important line of defense against potential fraudsters. It helps you verify:

• Identity and Criminal History: Ensuring the person you are hiring is who they say they are and has no criminal record that could endanger your business or other employees.

• Academic and Professional Qualifications: Verifying that the degrees and certifications listed on their resume are real and not just a product of a fake resume. For more on this, read our blog on Top 5 Fastest Recruitment Service in Nigeria.

• Employment History: Contacting previous employers to confirm their roles, responsibilities, and reasons for leaving. This is where we uncovered the truth about our client’s employee.

Promotions or Transfers

When an employee is being promoted to a position of higher trust or financial responsibility, like a management role or a position in the finance department, it’s wise to run another check. They will now have access to more sensitive data and assets. Re-evaluating their background ensures that the company remains protected.

Periodically or as an Internal Audit

Even long-serving employees can pose a risk. Conducting a surprise audit on key staff, especially those in high-risk departments, can help you uncover internal fraud schemes before they cause significant damage. It’s a preventive measure that can save you millions.

Your Trusted Partner in Verification: Avant Tech Nigeria

At Avant Tech Nigeria, we believe that the best defense is a great offense. Our super-fast and thorough investigation and verification process is designed to protect your business. We go beyond the surface to uncover the hidden truths in an applicant’s history. We understand the local Nigerian context and the unique challenges you face, and our services are tailored to meet those needs. With us, you get a reliable partner who can help you build a trustworthy and safe workplace.

For more information, please visit our profiles on:

• GoodFirms

• Clutch

• Connect Nigeria

Leading Background Check Agencies in Nigeria

Here is a list of credible background check agencies that can help you protect your business.

For more resources and tips on hiring, check out our other blogs:

• Top 10 International Background Check Companies in Lagos, Nigeria (2025 Edition)

• What is your Salary Expectation? The Perfect Answer

• Top Recruitment Agencies in Lagos, Nigeria

Conclusion

Mehn, the story of the fraudulent employee is not a new one. Workplace fraud is a real and costly threat. Relying on gut feelings or a charming personality can be a costly mistake that no business can afford. The risk of a bad hire is too high. By conducting a proper background check, you are not just protecting your money; you are protecting your reputation, your employees, and your business’s future. Don’t wait until you discover a hole in your pocket. Be proactive.

What steps are you taking to ensure you don’t fall victim to a Scam!? Share your thoughts below.