The Evolving Threat of Employment Fraud
The risk of employment fraud is rising and is becoming more sophisticated with tech advancements like artificial intelligence (AI). Understand how enhanced candidate screening may help combat identity fraud and credential and reputational misrepresentation.
As we see technological advancements in the employment landscape grow, so does the threat of employment fraud. It isn’t just falsified resumes employers should be aware of, but also stolen identities, entirely synthetic candidates, and job seekers who create false digital personas.
These modern employment fraudsters have shifted from just resume embellishment to more sophisticated tactics that thrive in the new remote-working era we are in. Stolen identities and AI-generated personas are an evolving and urgent threat in this time when remote hiring removes some of the traditional verification safeguards.
Three key areas where employment fraud can be found are: identity fraud, credential misrepresentation, and reputational misrepresentation. Identity fraud involves stolen or synthetic identity claims. Credential fraud includes skillset and document misrepresentation, and reputational misrepresentation alludes to a falsely curated identity designed to fit the unique needs of your team.
Some common tactics used by identity fraudsters include:
Deepfakes and AI-enhanced photos
Proxy interview participants
U.S.-based laptop “farms”
Fake online profiles
Fake degrees and diplomas
Inflated job titles
Cultural or reputational misrepresentation
Embellished experience
The consequences of employment fraud for employers can be drastic. There’s an increase in the risk of data breaches, compliance violations, internal disruption, and reputational damage. There is also a direct cost of fraud. In fact, it’s estimated that organizations around the world lost 4.7 trillion dollars to fraud in 2022.
How Can You Help Protect Against this Evolving Threat?
At a high level, one answer to that is a proactive, multi-layered background screening strategy to help mitigate these risks. As an employer, one of your goals may be to obtain a complete picture of a candidate’s background to help reduce the threat of fraudulent hires.
Combating Identity Fraud
The first line of defense a thorough screening program may provide against identity fraud is digital identity verification. Traditional ID checks might not be sufficient against sophisticated AI-driven fraud. Enhanced digital identity verification using biometrics can be the first step to help support the accuracy of other checks.
HireRight’s Global ID Check, fulfilled by Yoti, uses advanced digital technology to verify the authenticity of government-issued IDs. This service also offers the option to use biometric technology to check liveliness and face match to help verify individuals’ identity. SSN verification adds another layer of identity review for U.S. candidates by obtaining verified information directly from the Social Security Administration (SSA). Together, Digital ID verification and SSN verification can act as the foundational layer for robust identity assurance.
Combating Credential Misrepresentation/ Document Fraud
For more in-dept candidate information verification, consider conducting employment verifications, reference checks, and qualification checks. Services like these can help demonstrate the integrity of your candidate and that they’re suitably qualified for your roles.
Identifying and preventing document fraud often requires sophisticated technology or AI solutions capable of detecting inconsistencies in text and performing an analysis to spot tampering or forgery.
Combating Reputational Misrepresentation
One step in helping to protect against reputational misrepresentation can be a multi-layered screening program designed to identify potential behaviors, values, and conduct that may affect role suitability. While still subject to legal and FCRA compliance standards, screening services like a social media search, conduct search, and adverse media search may help do just that.
Employment Fraud is a Real Threat
Putting in safeguards like these can bring a number of key benefits to help mitigate risk by helping to reduce financial losses, improve compliance processes, and create a safer environment for existing employees. The integration of these practices helps streamline workflows for efficient multi-layered screening. This due diligence can help you to operate with confidence knowing you have a robust background screening program in place with the potential to support your fraud prevention efforts, resulting in invaluable peace of mind.
Release Date: June 26, 2025
HireRight
HireRight is a leading provider of on-demand employment background checks, drug and health screening, and electronic Form I-9 and E-Verify solutions that help employers automate, manage and control background screening and related programs.