Accounting and finance roles carry a level of access most positions don’t, direct visibility into assets, financial records, and the systems that control where money moves. That access is exactly why occupational fraud concentrates so heavily in these departments. More than half of all fraud cases in the ACFE’s most recent Report to the Nations came from just five business departments, and accounting and operations are consistently overrepresented because employees there have broad access to both assets and financial records, the two ingredients most fraud schemes require.
The Numbers Make the Stakes Clear
The scale of what’s at risk is substantial. The median fraud loss per case runs around $145,000, with average losses closer to $1.7 million once the worst cases are included. Roughly a third of embezzlement perpetrators worked in financial roles or within the accounting department specifically, and 85% of embezzlement is committed by managers, the exact seniority level firms are often hiring for when filling controller, accounting manager, or senior finance positions.
The damage also compounds with tenure. More than half of fraud perpetrators had worked at their company for at least six years, and the median fraud scheme runs about a year before detection. By the time a long-running scheme is caught, the original pre-employment screening is often years stale, which is a meaningful point for how firms should think about vetting, not just at hire, but as an ongoing practice.
Background Checks Matter, But They’re Not Sufficient Alone
Here’s the finding that should reshape how firms think about screening: 88% of occupational fraudsters passed their pre-employment background checks without exhibiting a single red flag. Only 12% showed any red flag at all before being hired, and just 4% had a prior fraud conviction that either wasn’t caught or didn’t prevent the hire. This isn’t an argument against background checks, it’s a clear signal that criminal history screening alone cannot be the only layer of protection a firm relies on.
The research is direct on this point: these results highlight the limitations of relying solely on criminal history screening as a fraud prevention measure. Stealing from an employer is frequently a crime of opportunity rather than a repeat pattern, meaning most people who eventually commit fraud have no criminal record to find in the first place.
What a More Complete Vetting Process Looks Like
Since criminal history alone misses most future fraudsters, a stronger accounting hiring process layers in additional checks:
Credential verification. Confirming CPA licensure, degree claims, and professional certifications directly with the issuing institution, rather than taking a resume at face value, catches a surprisingly common problem. Claiming a degree that wasn’t earned is one of the most frequent reasons job offers get rescinded, and it’s a red flag firms can only catch by actually verifying it.
Credit history review, where legally permitted. For roles with authority over cash deposits, disbursements, or financial controls, a credit report can reveal financial pressure that correlates with fraud risk, information a criminal background check won’t surface at all.
Reference checks that go beyond confirming dates of employment. Speaking directly with former supervisors about how a candidate actually handled financial responsibility, not just verifying they held the title, adds a layer of insight a formal background check can’t provide.
Identity verification for remote and hybrid roles. Confirming that the person completing onboarding paperwork is actually the person tied to the employment history being submitted has become standard practice as remote hiring has expanded, catching a growing category of resume and identity fraud that wasn’t a major concern a decade ago.
Behavioral Signals Matter as Much as the Paper Trail
Because criminal history predicts so little on its own, ongoing behavioral awareness matters more than most firms initially assume. Most fraudsters, roughly 84%, display at least one behavioral red flag before being caught, and living beyond one’s apparent means has been the single most common indicator identified in every major fraud study since 2008. This isn’t a reason to interrogate every hire’s lifestyle, it’s a reason to build financial controls and internal awareness that continue well past the hiring decision, rather than treating a clean background check as a one-time clearance that closes the risk conversation permanently.
Why This Matters Even More With a Staffing Partner
Firms bringing in contract or interim accounting professionals to cover busy season or a leadership gap sometimes assume vetting responsibility shifts entirely to the staffing partner. It’s worth confirming exactly what screening a partner actually performs, credential verification, criminal history, reference checks, before assuming it’s covered. A staffing partner with a rigorous, consistent vetting process for every placement, not just direct hires, closes a gap firms sometimes overlook when temporary or contract roles still carry real financial access.
The Bottom Line
Credentialing and background checks are a necessary first layer of protection in accounting hiring, but the data is clear that they’re not sufficient on their own. The firms managing this risk best combine thorough pre-employment vetting, credential verification, and behavioral awareness with strong ongoing internal controls, rather than treating a clean background check as the end of the risk conversation.
Globalsoft Solutions applies rigorous credentialing and vetting to every accounting and finance placement, whether direct hire or contract, so firms aren’t left guessing what screening actually happened before a candidate reaches their payroll. Our direct hire and permanent staffing and contract staffing services are built around that standard. Contact us to talk through how we vet every accounting candidate we place.
Sources
- New Report Highlights Limitations of Relying on Background Screening as Fraud Prevention Measure | ASIS International
- Employee Theft & Workplace Fraud Statistics 2026 | Reliable Background Screening
- Can an Employment Credit Check Prevent Embezzlement? | BackgroundChecks.com
- 70+ Employee Theft Statistics for 2025 | Embroker
- What Does a Background Check Actually Look For? | Leon Consulting
