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What is organised crime?
Organised crime refers to criminal organisations that engage in illegal activities for financial gain. The crimes can be, for example, money laundering, identity theft, corruption and cybercrime. The goal of organised crime is either financial gain or increased power, according to the Swedish Economic Crime Authority.
Using advanced technology and global communication channels, these networks have become increasingly international, making it easier for them to avoid detection and expand their activities across borders. The EU’s free movement of services, goods and people not only makes it easier for citizens and businesses to move across national borders, but also for organised crime, according to the Sieps report Cross-border organised crime in the EU.
What is financial crime?
Economic crime is a form of organised crime that focuses on exploiting economic systems for illegal gain. This can be, for example, money laundering, tax fraud, accounting offences or corruption. Financial crimes are often complex and hidden in nature, making them difficult to detect and investigate.
Financial crime can have serious consequences for businesses and societies and can lead to significant financial losses, damage trust in financial institutions and undermine the rule of law.
Businesses are a particularly attractive target for organised crime, which can have devastating consequences, both financially and in terms of trust, and lead to damage to a company’s reputation and business relationships. The exploitation of both business and public actors by criminals to finance their activities has become a major and costly problem in Sweden, according to a report by the Stockholm Chamber of Commerce.
Organised crime in companies and organisations
Europol has also warned that criminal networks are increasingly targeting businesses as part of their strategies to expand their operations, in Serious and Organised Crime Threat Assessment (SOCTA) 2021. This increase in organised crime in the business sector places high demands on businesses to be vigilant and implement regular security measures to identify and prevent potential threats.
Risks for employers
Criminal networks can infiltrate companies in several ways, one of which is through the hiring process. A recruitment mistake can give unsuitable people direct access to company resources, which can lead to significant financial losses and damage to the company’s brand.
Examples of risks include:
The use of corporate structures to conceal and convert illicit funds into legitimate income.
Using the personal data of business customers or employees to commit fraud.
Attempts to bribe or manipulate company employees to gain access to sensitive information or control business decisions.
Preventing organised crime
To protect your business against organised crime, it is important to have a proactive strategy. This can include, for example:
- Training and awareness: Train staff regularly on security threats and how to recognise signs of fraud or infiltration.
- Strong internal controls: Implement robust internal controls and regular audits to detect and prevent fraudulent activities.
- Technological security measures: Use advanced technology to protect your company’s data and systems, including firewalls, antivirus software and encryption.
- Risk management: Conduct regular risk assessments to identify potential vulnerabilities and develop strategies to manage these risks.
- Background checks: Conduct various types of background checks on all employees and potential employees to identify any links to criminal networks.
- Incident management plan: Develop and test an incident management plan to respond quickly to security breaches and minimise damage.
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The importance of background checks
Criminal networks often exploit weaknesses in recruitment processes to infiltrate companies. By conducting thorough background checks, companies can detect potential links to organised crime and avoid hiring individuals who pose a risk to the business. The verifications should be a key part of the company’s risk management and security policy.
In a globalised world, it is not enough to conduct national background checks alone. Criminal networks often utilise global structures and cross-border communication to conduct their operations. By carrying out international checks, companies can reduce the risk of unwittingly employing individuals with links to organised crime in other countries.
Let Validata help you with background checks
Validata offers comprehensive background checks that help companies protect themselves against infiltration by criminal networks. By implementing these measures, your business can minimise risk and ensure a safe and secure working environment.
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