{"id":110774,"date":"2024-06-17T16:51:47","date_gmt":"2024-06-17T15:51:47","guid":{"rendered":"https:\/\/www.intelligentcio.com\/eu\/?p=110774"},"modified":"2024-06-17T16:51:49","modified_gmt":"2024-06-17T15:51:49","slug":"how-to-avoid-falling-victim-to-hiring-fraud","status":"publish","type":"post","link":"https:\/\/www.intelligentcio.com\/eu\/2024\/06\/17\/how-to-avoid-falling-victim-to-hiring-fraud\/","title":{"rendered":"How to avoid falling victim to hiring fraud"},"content":{"rendered":"\n

Keith Rosser, Director of Group Risk and Reed Screening, talks to us about the worrying trend for fraudulent activity in the recruitment space, from fake qualifications to the misuse of AI tools.<\/em><\/strong><\/p>\n\n\n

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Keith Rosser, Director of Group Risk and Reed Screening<\/strong><\/figcaption><\/figure><\/div>\n\n\n

Research shows significant increases in the UK\u2019s \u2018Fraudscape\u2019 \u2013 with 64% of fraudulent filings being identity fraud and a 900% per annum rise in deepfake videos. The growth of sophisticated technology is enabling this shift, and it\u2019s also resulting in a rise in hiring fraud \u2013 a danger to many businesses across the globe.<\/p>\n\n\n\n

But how safe is your business?<\/p>\n\n\n\n

\u201cEmployers should be very worried about hiring fraud,\u201d said Rosser. \u201cWith the development of technology and improvements in the speed of hiring, we\u2019ve seen hiring fraud accelerate at an unprecedented pace.\u201d<\/p>\n\n\n\n

What is hiring fraud?<\/strong><\/p>\n\n\n\n

Reed Screening, together with Better Hiring Institute and other partners, define 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.<\/p>\n\n\n\n

Hiring fraud manifests itself in various forms, from falsified credentials and fake references to identity theft and AI abuses.  <\/p>\n\n\n\n

\u201cThe tactics scammers use often deceive recruiters and can lead to the unwitting employment of unqualified or dishonest individuals, and the consequences for businesses can be both financially and reputationally damaging,\u201d said Rosser.<\/p>\n\n\n\n

\u201cTechnology 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.\u201d<\/p>\n\n\n\n

Protecting your business against the different types of hiring fraud<\/strong><\/p>\n\n\n\n

There are various types of hiring fraud \u2013 many of which are becoming increasingly sophisticated and harder to spot.<\/p>\n\n\n\n

Below, Rosser lists some of the top fraudulent activities businesses should be aware of during the hiring process, and explains how they can protect themselves.<\/p>\n\n\n\n

1. Reference fraud<\/strong><\/p>\n\n\n\n

\u201cArguably one of the biggest threats at the moment are \u2018reference houses\u2019,\u201d said Rosser. \u201cThese are organisations that provide fake references for candidates during the vetting stage of hiring.\u201d<\/p>\n\n\n\n

In these situations, the contact details provided by the applicant will point businesses towards a reference house, instead of a previous employer, for them to subsequently give a fake reference. Often, the contact details are very similar to a legitimate company, and some reference houses even go as far as creating their own website and offering services, such as fake bank statements or telephony verification services, for the individual to use to support the reference if challenged.<\/p>\n\n\n\n

Over 100 reference houses were identified in 2023 alone.\u00a0<\/p>\n\n\n\n

\u201cReference houses are often used to cover a lack of experience, full employment history, or at worse, fraudulent history that may be relevant for more sensitive jobs roles,\u201d said Rosser.  <\/p>\n\n\n\n

When on-boarding new workers, Rosser advises businesses to be vigilant and question anomalies. This could include asking the following:<\/p>\n\n\n\n