TALKING

But how safe is your business ?

“ Employers should be very worried about hiring fraud ,” said Rosser . “ With the development of technology and improvements in the speed of hiring , we ’ ve seen hiring fraud accelerate at an unprecedented pace .”

What is hiring fraud ?

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 .

Hiring fraud manifests itself in various forms , from falsified credentials and fake references to identity theft and AI abuses .

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 .

Over 100 reference houses were identified in 2023 alone .

“ Reference 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 ,” said Rosser . When on-boarding new workers , Rosser advises

Keith Rosser , Director of Group Risk and Reed Screening

“ The 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 ,” said Rosser .

“ 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 .”

Protecting your business against the different types of hiring fraud

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 .

There are various types of hiring fraud – many of which are becoming increasingly sophisticated and harder to spot .

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 .

1 . Reference fraud businesses to be vigilant and question anomalies . This could include asking the following :

• Does the email address look official ? Are there any spelling errors or additional characters added ?

• Do the dates of the reference match the employment history shown on the CV ?

• Does the referee ’ s job title suggest a position of responsibility ?

“ Arguably one of the biggest threats at the moment are ‘ reference houses ’,” said Rosser . “ These are organisations that provide fake references for candidates during the vetting stage of hiring .”

It is also important to check references against lists of known reference houses , or to insist your employee screening company builds in reference house checks into the hiring process .

www . intelligentcio . com INTELLIGENTCIO EUROPE 35