The employment verification process has evolved along with existing technology. Now, landlords, lenders and prospective employers can verify salary and employment history in a matter of moments.
Has the security protocol for verification of employment requests kept pace with the advances in cloud technology and artificial intelligence? Let’s take a look at areas where there’s room for improvement and some common security issues you should avoid.
What Is a Salary Key?
The 1970 Fair Credit Reporting Act set the standard for personal information involving credit reporting. The salary key evolved to meet the requirements of this legislation, which requires an individual’s consent prior to accessing their credit and financial information.
Because of these practices, these salary keys have become less secure, and a more secure authentication process now makes sense.
Secure Authentication for Employment Verification
Oftentimes, employees are confused as to how to create or obtain the salary pin their verifiers are requesting. This results in the employees reaching back out to their employer for instructions or guidance on where to go and what to do. Usually, they are required to register on the vendor’s website to create the pin and provide it to their verifier. This back and forth between the employees, employers and verifiers often slows down the process of verifying employment and income, which can result in home closing delays or other issues.
Common Flaws in Employment Verification Security To Avoid
Don’t put your company at risk for fraud charges by maintaining lax security protocols around your verification of employment process. There are two primary vulnerabilities when it comes to maintaining the required security for employment verification requests:
- Failing to vet parties requesting information
- Insufficient security for the verification of employment process
If your company handles employment verification in-house, an overwhelmed HR employee might process a request for information without checking the credentials of the requestor. Unfortunately, unauthorized requesters phish for sensitive data all the time, hoping to commit fraud or sell private data on the dark web. If someone uses information faxed or emailed from your company, you can be open to litigation. Instead, opt to streamline employment verification requests by eliminating manual processes like email or fax.
Companies tend to prioritize customer, vendor and product information over employee data. While that makes good business sense, it could leave your organization vulnerable to hackers who specialize in obtaining employee information to commit fraud.
Most companies have tons of employee data on their networks. Without the appropriate security protocols in place, ransomware or other data breach tactics can expose sensitive employee information. Therefore, companies are learning the hard way to prioritize the security of their systems.
Outsourcing your employment verification requests to a reliable third party can help ensure you have a robust compliance framework in place. This can prevent data breaches that lead to a slew of expenses, such as recovery costs, notification costs, loss of goodwill and potential litigation.
Using Third-Party Verification Reduces Your Risk
We recommend finding a third-party verification system that provides the following advantages:
- Custom Reports built to your specifications,
- Verification letters that mimic the company letterhead,
- Protection for your valued employees,
- A multifactor authentication of requests and authorization,
- A thorough credentialing process for the verifier community, and
- Reduced risk of litigation, lost data and loss of reputation.
By using a third-party verification system, you can shift the role from a company personnel to an industry expert. A good third-party vendor approaches employment verification requests as a managed service. That means they follow the proper protocols to help prevent data breaches and reduce your liability, freeing you up from the time, effort and risk of doing it in-house.