With artificial intelligence (AI) increasingly used by jobseekers, businesses and their hiring teams need to be savvy enough to spot whether or not applicants possess the skills they claim to have.
In this article, Keith Rosser, Director of Group Risk at Reed and Director at Reed Screening, discusses the rise of hiring fraud and the steps businesses need to take to spot fake candidates.
What is hiring fraud?
Hiring fraud happens when someone cheats during the hiring process. It can involve people defrauding organisations or businesses misleading job seekers. This can include things like fake qualifications, made-up job histories, or even identity theft.
There's growing worry about hiring fraud, especially with fake qualifications and the use of AI tools. For instance, some job seekers use AI platforms like ChatGPT to write their CVs and answer interview questions in ways that increase their chances of getting hired.
Because of the rise of AI, it's now more important than ever to spot dishonest candidates. Any dishonesty could result in your business falling victim to fraud and losing money.
Hiring the wrong person can have serious consequences. There are direct costs, like wasted salary, training, and hiring again. But there are other costs, like hurting team morale, which can lower productivity.
A more serious risk
There can be more harmful reasons behind fake job applications than just exaggerating skills. Technology, including AI, has made it easier for criminals to exploit traditional hiring processes. Businesses need to adapt to avoid things like fake CVs, scams, and the misuse of AI tools.
Sometimes, AI might help a person seem qualified for a job, even if they don't have the skills needed. But there's an even more dangerous side to AI. For instance, scammers could use deepfakes to pretend to be someone else during a job interview. This is especially worrying for remote jobs, where it's harder to spot a fake worker.
Fake workers might steal business secrets or scam the company for money. In more sensitive jobs that need background checks, this could mean people with criminal records or without proper qualifications end up in positions they shouldn't legally be in.
How to stop a fake candidate
When looking for a fake candidate, it's important to stay alert and question anything unusual. Here are some signs to look out for on a candidate's CV:
- Lack of detail or specifics
- Gaps in work history or missing references
- Claims that can't be verified
- Odd formatting or poor grammar
- Exaggerated job titles or responsibilities
You can take formal steps to check if a CV is genuine, such as:
- Verifying work history with independent sources like government data, payroll records, or HMRC Gateway data. These can confirm employment claims.
- Checking educational and professional qualifications and asking for proof of awards or recognitions. Poor grammar, strange formatting, or incorrect titles can signal a fake document.
- Training your hiring team to recognise fake certifications and spot red flags. Employment screening companies can help, but it's a good idea to encourage employees to report suspected fraud.
To prevent AI-generated responses from tricking your hiring process, businesses can take these steps:
- Use AI detection systems. These systems help identify when AI has been used. While it's okay for applicants to use AI for their applications, you want to ensure they are who they claim to be. If AI is detected, adjust the recruitment process to verify the candidate's authenticity.
- Focus on competency-based interviews. Ask candidates to give specific examples of past work or detailed questions that test their knowledge. Real candidates usually provide clear, detailed answers and can respond to follow-up questions.
- Do face-to-face interviews, even for remote jobs. This is a simple way to spot fake candidates and see if someone will fit well in your company.
Technology has allowed criminals to exploit traditional hiring methods. Businesses need to stay ahead to protect themselves from hiring fraud.
For extra help, you can hire specialists in pre-employment screening or consult the Better Hiring Institute, which offers guidance and recently released a report on tackling hiring fraud in the UK.
About the author
Keith is Director of Reed Screening, one of the UK's largest employee screening businesses. He received a Home Office Commendation Award for services to recruitment and multiple industry awards. Keith is Chair of the Better Hiring Institute, and a Board Member of UK Home Office and Scottish Government agencies.
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