Hiring fraud is an insidious practice that undermines trust and poses significant financial and reputational risks for businesses. As employers strive to find the right talent, they must remain vigilant against fraudulent activities that can tarnish their operations and brand integrity.
Hiring fraud manifests in various forms, from falsified credentials and fabricated work histories to identity theft and impersonation. These tactics often deceive even the most astute recruiters, leading to the unwitting employment of unqualified or dishonest individuals. The consequences can be dire, ranging from decreased productivity and morale to legal liabilities and damage to company reputation.
Detecting fraudulent applications has become increasingly challenging. However, employers can use several strategies to safeguard their recruitment processes.
Most recently, Reed has contributed to the first guidance of its kind to help UK organisations protect their recruitment practices. ‘Tackling hiring fraud: the UK’s response to a growing problem’ serves as a frontline tool in the battle against fraudulent hiring activity.
Steps to a secure hiring process
The guide, fronted by the Better Hiring Institute, identifies nine types of fraudulent activity: reference fraud, qualification fraud, fake application documents, CV-based fraud, employment scams, manipulation of artificial intelligence, dual employment, immigration fraud and fraud as a result of recruitment agency usage. Each is addressed in detail with case studies and expert guidance on prevention.
As a rule, thorough background checks are indispensable. Employers should verify the authenticity of educational qualifications, professional certifications, and employment histories provided by candidates. Utilising reputable background screening services, such as Reed Screening, can help uncover discrepancies and ensure that prospective hires possess the credentials they claim.
Identity verification measures are essential. Adopting biometric authentication or identity verification technologies will help, reducing the likelihood of impersonation and identity theft.
Stringent interview processes can also serve as a deterrent against fraudulent candidates. Conducting multiple rounds of interviews, including in-person assessments, and soliciting detailed responses can identify genuine candidates from impostors.
Technology can automate and streamline recruitment processes. Candidate tracking systems equipped with fraud detection algorithms can flag irregularities in applications, adding a further layer of protection.
It can also help to raise awareness of hiring fraud with your employees – encouraging them to report suspicious activities and provide avenues for whistleblowing. Providing guidance on how to spot red flags can have a ripple effect, protecting both the business and employees from falling victim to fraud in their career.
Protect your business with our hiring fraud guidance – free download
Technology has enabled criminals to take advantage of traditional recruitment processes, and organisations must adapt if they are to avoid CV fraud, employment scams, manipulation of AI tools and many more tactics.
Reed Screening, together with Better Hiring Institute and other partners, have defined hiring fraud as any fraud committed during the hiring process, which may be committed by an individual against an organisation, or by an entity against a jobseeker.
This comprehensive guide, ‘Tackling hiring fraud: the UK’s response to a growing problem’, identifies how employers can protect their organisations, using expert advice on how to prevent the most common criminal activity.
Keith Rosser, Director of Group Risk & Reed Screening – Reed, said: “Employers should be very worried about hiring fraud. At Reed Screening we have made huge progress over the last few years in making UK hiring the fastest globally, including being referenced by UK government for our work on digital right to work. However, with the development of technology and improvements in the speed of hiring, we have seen an acceleration and amplification of fraud."
The new Better Hiring Institute free guide on tackling hiring fraud, co-written by Reed Screening and Cifas, contains a really useful checklist for HRDs (human resources directors) and CPOs (chief people officers) to use to ensure the company they represent has all the right defences in place.
Download our free hiring fraud guidance to help safeguard your organisation using the button at the top of this page.
