Reducing Recruitment Fraud with Vetting

Don’t Fall for the “Perfect Candidate”: How Proactive Vetting Reduces Recruitment Fraud

In the digital era, the hiring process is faster and more connected than ever. Unfortunately, this efficiency has also created new opportunities for fraud. From falsified degrees to fake employment references, a growing number of candidates are using dishonest tactics to secure a job. Research from Cifas, the UK’s leading fraud prevention service, revealed that nearly a fifth of UK adults have either lied on a CV or know someone who has. The cost of this fraud to the UK economy is staggering, with a 2019 report by Crowe UK estimating it at over £23.9 billion per year. At Expol, we understand that proactive vetting is your most powerful defence, and we provide the multi-layered screening solutions you need to protect your business from the costly consequences of recruitment fraud.

Current Trends in Application and Resume Fraud

Fraud is no longer just about a small exaggeration on a CV. It’s an increasingly sophisticated problem driven by a competitive job market and the availability of technology.

• Fabricated Credentials: Candidates are using “diploma mills” to buy fake degrees or simply fabricating qualifications that are difficult to verify. A Cifas report found that supplying false references saw a massive rise of 476% in just nine months.
• AI-Enabled Fraud: The rise of Artificial Intelligence (AI) tools has made it easier than ever for candidates to create highly polished, yet completely fabricated, CVs and cover letters. AI can generate convincing job descriptions, project details, and even testimonials, making it difficult for a human eye to spot a fake.
• Identity Misrepresentation: Candidates may use a false identity to hide a negative past, such as a criminal record or a history of being fired for misconduct.
• Reference Fraud: This is a particularly insidious trend. Fraudsters are now creating fake companies or using friends to pose as previous employers, providing glowing but entirely false references.

The Cost of Recruitment Fraud to Businesses

The financial impact of recruitment fraud is far-reaching, and the costs extend well beyond a bad hire.

• Financial Loss: The direct costs of a bad hire, including recruitment fees, training costs, and lost productivity, are significant. If the fraudulent employee is in a position of trust, the business could also face losses from internal theft, embezzlement, or other criminal activities.
• Reputational Damage: A high-profile case of fraud can damage your brand, erode customer trust, and make it harder to attract top talent in the future.
• Legal and Regulatory Risk: Hiring an unqualified or fraudulent employee can expose your business to legal liability, particularly in regulated industries like finance or healthcare. This can lead to hefty fines, legal fees, and regulatory sanctions.
• Erosion of Trust: When it is revealed that a colleague lied to get their job, it can demoralise other employees and create a toxic workplace culture where trust is diminished.

Comprehensive Fraud Prevention Strategies

A single-check approach is no longer sufficient. The key to effective fraud prevention is a multi-layered verification strategy that combines technology with human expertise.

1. Multi-Source Verification: Don’t rely on a single document or reference. Cross-reference information across multiple sources. For example, verify employment history not just through a provided reference, but also through payroll records or professional networking sites.
2. Document Authentication: Fraudsters are skilled at creating convincing fake documents. Our process uses advanced techniques to authenticate documents, looking for inconsistencies, digital tampering, or forged security features. We don’t just accept a photocopy; we verify documents against the source.
3. Reference Fraud Detection: We are trained to spot red flags in references, such as generic email addresses, personal phone numbers, or referees who can only be contacted during non-standard hours. We also conduct cross-checks to ensure the referee’s details align with their claimed company and role.
4. In-depth Interviews: Train your hiring managers to ask targeted, probing questions about a candidate’s CV, particularly about gaps in employment or vague job descriptions. An honest candidate will be able to speak confidently and in detail about their past.

Technology Solutions for Fraud Detection

While human oversight is critical, technology is a powerful enabler of effective fraud detection.

• Automated Data Comparison: Our platform uses technology to automatically cross-reference data points on a CV against our databases and public records, flagging any discrepancies for human review.
• Document Integrity Checks: We employ tools that analyse the metadata and visual characteristics of a document to identify signs of tampering, forgery, or digital alteration.
• AI-Powered Red Flagging: While we don’t use AI to make hiring decisions, our systems can use machine learning to identify patterns and inconsistencies that are indicative of fraud, alerting our analysts to potential risks.

Building Fraud-Resistant Hiring Processes

To create a hiring process that is inherently resistant to fraud, consider these best practices:

• Implement a Vetting Policy: Clearly communicate your screening policy to all candidates and hiring managers. This transparency can act as a deterrent to dishonest applicants.
• Standardised Application Forms: Use a structured application form that asks for specific, verifiable details rather than relying solely on a free-form CV.
• Background Checks as Standard: Make background checks a mandatory part of your hiring process for all employees, not just those in senior or sensitive roles. This sends a clear message that integrity is non-negotiable.
• Train HR Teams: Provide regular training to your HR and talent acquisition teams on how to identify red flags, spot fraudulent documents, and understand the latest fraud trends.

The Power of a Multi-Layered Vetting Strategy

Recruitment fraud is a dynamic and evolving threat. By adopting a multi-layered approach that combines comprehensive verification checks with human expertise and smart technology, you can build a hiring process that is secure, compliant, and highly effective. This approach not only prevents dishonest candidates from infiltrating your organisation but also demonstrates your commitment to hiring a trustworthy and reliable workforce.

Don’t Let Fraud Infiltrate Your Business.

Protect your company’s reputation and financial health with Expol’s expert fraud detection and prevention services.

• Schedule a Fraud Prevention Consultation with our team.
• Request a Quote for a comprehensive screening package.
• Learn more about our Fraud Detection Training for HR professionals.