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February/2010
As 2010 enters into its second month, the national news reports conflicting information on the state of the US economy. Even as the jobless rate reportedly fell in January, Reuters also reported that business bankruptcies rose by 7% in the same month as compared to 2009. The constant media reports and pulse-taking of the economy marks a continued challenge for businesses managing their risk exposure. While the economy as a whole may be beyond individual control, managing risk in your business starts with vetting prospective clients and new hires.  
 
As a companion to January's news and a follow-up to our feature on fake job histories and references, this month's News Blast reports a case from our files that uncovered an applicant's fake bachelor's degree. Also, see below for a report on the global problem of degree mills, some astonishing facts and ways to uncover fake degrees.

Worth the paper it's written on? Degree mill uncovered in background screening

No honest job applicant should lose out to someone whose degree comes from a "degree mill"...but how can you tell the difference? When SI encountered problems verifying a bachelor's degree from Rochville University (for starters, no physical address was found), further research revealed that the "university" awarded degrees for a price; there was no formal admission process and credit was given for "applicable life experience" instead of attending classes (through correspondence or otherwise) or passing exams. Not only had the applicant bought his degree on-line, but SI also informed its client that there are currently 13 states where claiming a higher education degree from an Internet "degree mill" is either restricted or explicitly illegal.

 
Degree mills becoming global issue
 
A recent study published by Verifile Limited, "Diploma and accreditation mills: exposing academic credential abuse," reports alarming rates of degree mill use and counts over 1200 active degree mills operating in the United States and United Kingdom (with more spread across the globe). The Verifile study even searched "Rochville University" on LinkedIn.com and discovered that over 400 members listed degrees from that mill and held positions such as directors and senior managers at blue chip companies (13). The problem does not appear to be going anywhere soon, so what can employers and companies do to protect themselves and their brand from being associated with disreputable education claims? As with employment verification, companies and background screeners should never rely on contact information provided by the applicant or subject of investigation. Even if a public biography of a company principal references education, that education should be independently verified before engaging in business with the individual.
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March case study preview:
We'll report on our investigation of an investment firm that uncovered the subject firm's connections to a recent media headliner who allegedly received over $35 million in ill-gotten profits from a sophisticated insider trading scheme. 
Issue: 8
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