Hiring fraud is a growing issue in the UK, posing significant risks to businesses and the economy. As recruitment processes become faster and more technologically advanced, the dangers associated with fraud also rise.
Understanding Hiring Fraud
Hiring fraud refers to deceptive practices during recruitment. It can be committed by individuals seeking employment or by those targeting job seekers. The consequences include financial losses, reputational damage, and legal liabilities. This type of fraud manifests in various ways, from falsified CVs and fake qualifications to elaborate scams involving fraudulent recruitment agencies.
This is especially important in sectors such as management consultancy recruitment, where hiring fraud can have significant repercussions due to the specialised expertise required.
LinkedIn serves as a helpful tool, providing a public record of candidate information. However, it is not infallible. While it is difficult to fake a large number of connections, discrepancies between a CV and LinkedIn profile, or a lack of a LinkedIn profile, should be thoroughly investigated.
Poor spelling or grammar in written communications can also be a red flag, much like errors in scam emails. Such mistakes should be viewed cautiously across all channels.
Common Types of Hiring Fraud Targeting Employers
Hiring fraud can take many forms, each posing unique challenges for employers. From falsified references to fake qualifications, understanding these types of fraud is crucial to protecting your business. Below are some of the most common schemes targeting employers and how they can be identified and prevented.
Fraudulent References
Fraudulent references involve the use of fake references or ‘Reference Houses’ that fabricate employment histories for a fee. These references can appear highly convincing, supported by fake websites and contact details.
Example: A job seeker who was rejected multiple times for lack of experience paid a ‘Reference House’ £500 for fake references. After securing a job with these falsified credentials, they were coerced into committing fraud for the group that provided the false references.
Prevention Tips:
- Independently verify job references through previous employers or reputable databases such as LinkedIn.
- Where possible, speak to the referee or confirm their identity via a call.
- Scrutinise the references carefully, checking email addresses, dates, and the job titles provided.
Qualification Fraud
Qualification fraud involves counterfeit degrees or exaggerated academic achievements to gain employment. This can range from buying fake certificates to falsifying grades.
Example: A bogus doctor, Zholia Alemi, worked for the NHS for over 20 years using a forged medical degree. Her fraud was discovered due to a minor spelling error in a document.
Prevention Tips:
- Verify qualifications directly with issuing institutions.
- If you accept copies of certificates or transcripts from candidates, verify with the institution directly that the documents are authentic
- Check if qualifications listed on LinkedIn matches information on both CVs and vetting forms.
Fake Application Documents
This fraud involves the use of fake identity documents, professional registrations, or other paperwork to secure employment. Beware of applications using identities of other individuals to secure employment only for another individual to turn up to do the job.
Example: A candidate used fake documents to obtain a job as a night care assistant. The fraud was uncovered during a payroll check that flagged the use of false identities.
Prevention Tips:
- Outsource document verification to employment screening specialists.
- Check the authenticity of identity documents with the issuing bodies.
CV-Based Fraud
CV fraud includes false claims about employment history, qualifications, and personal details. It is often used to hide employment gaps or criminal records.
Example: A fraudster secured a senior NHS role with a fabricated CV, claiming false degrees and experience. He was later ordered to pay back nearly £100,000.
Prevention Tips:
- Verify details through independent sources.
- Use specialised services for education and qualification checks.
- Be cautious of red flags such as inconsistent dates or exaggerated job titles.
Candidate Use of Artificial Intelligence
Some candidates use AI tools to craft CVs and interview responses. While not fraudulent, this can lead to unqualified individuals securing roles.
Example: A candidate used an AI app during a virtual interview, reading real-time responses generated by the app.
Prevention Tips:
- Implement AI detection systems.
- Use competency-based interviews to assess genuine skills.
- Conduct at least one face-to-face interview round.
Dual Employment
Dual employment occurs when an individual holds two jobs simultaneously, often violating employment contracts. Multi-jobbing has increased significantly due to opportunities created by remote working, coupled with the sharp rise in the cost of living.
Example: An employee worked full-time for both a council and the NHS, claiming sick leave from one while working for the other. The fraud was uncovered through payroll matching.
Prevention Tips:
- Update employment contracts to restrict dual employment.
- Monitor performance for signs of divided attention.
- Check social media profiles for conflicting employment.
Immigration Fraud
This fraud involves the use of false documents or overstaying visas to work illegally.
Example: A supermarket chain was fined for employing students who exceeded their visa work hours. The fraud was discovered during an immigration enforcement raid.
Prevention Tips:
- Use Identity Document Validation Technology (IDVT) for right-to-work checks.
- Conduct in-person document verifications.
- Retain records of right-to-work checks for at least two years post-employment.
Fraud via Recruitment Agencies or Third-Party Suppliers
This involves contract and interim employment, where agencies may fail to perform adequate checks, leading to fraudulent hires.
Example: A recruitment agency director diverted funds and placed unqualified workers, causing financial and reputational harm to their clients.
Prevention Tips:
- Partner with accredited recruitment agencies that follow compliance standards.
- Verify candidate identities on-site.
- Ensure agencies issue ID badges, especially in regulated environments.
Best Practices for Preventing Hiring Fraud
To effectively combat hiring fraud, it’s essential for employers to adopt a proactive stance and implement best practices throughout their recruitment processes. By establishing comprehensive strategies, organisations can minimise risks and ensure a safer hiring environment. Here are some effective practices to consider for preventing hiring fraud.
1. Choose Reputable Recruiters and Screening Providers
Only work with agencies that adhere to high standards and are members of accredited bodies. Conduct regular audits to ensure compliance.
2. Collaborate with Industry Groups
Engage with organisations like Cifas and the Better Hiring Institute for shared intelligence and best practices.
3. Foster a Culture of Vigilance
Encourage employees to report suspicious activities and provide training on fraud detection. Ensure all staff involved in recruitment are aware of the potential for scams.
4. Use Advanced Onboarding Technologies
Implement systems for IP address verification and AI-driven fraud detection during onboarding.
5. Verify Employment Histories
Use independent verification services and conduct periodic reviews to spot discrepancies.
6. Adopt Digital Right to Work Checks
Utilise IDVT to ensure faster and more accurate right-to-work checks, following Home Office guidelines.
7. Monitor for Dual Employment
Conduct periodic checks to identify employees holding multiple jobs. HMRC PAYE record checks will detect this type of fraud.
Conclusion
By adopting these strategies, employers can significantly reduce the risks of hiring fraud. Vigilance, leveraging LinkedIn, and collaborating with industry bodies are key to maintaining a secure and fair hiring process. Staying informed about the latest fraud trends is essential for protecting businesses in today’s fast-evolving hiring landscape.
How EBC Global Can Help Prevent Hiring Fraud
At EBC Global, we specialise in providing advanced screening solutions to protect businesses from the growing threat of hiring fraud. Our comprehensive services help ensure that your recruitment process is secure and compliant with industry regulations. Here’s how we can support your organisation:
1. Comprehensive Background Checks
Our platform offers detailed background checks, including employment history, all levels of criminal (DBS) and identity verification. By partnering with EBC Global, you can confidently vet candidates and avoid the risks associated with fraudulent applications.
2. Digital Right to Work Checks
We utilise Identity Document Validation Technology (IDVT) to perform quick and accurate right to work checks, ensuring compliance with Home Office guidelines. Our automated system helps streamline the process while reducing the chances of hiring individuals with falsified documentation.
3. Ongoing Monitoring and Auditing
We provide continuous monitoring services to detect potential dual employment or other conflicts of interest, helping you mitigate risks even after the hiring process. Our auditing capabilities allow you to identify any inconsistencies in employment records over time.
4. Bespoke Solutions for Your Industry
Whether you operate in recruitment, finance, healthcare, or any other sector, our tailored solutions ensure that your business remains protected from the various forms of hiring fraud. We work closely with you to customise our services based on your specific needs.
By partnering with EBC Global, you can stay ahead of fraudsters, ensuring a more secure and efficient recruitment process. Let us help you safeguard your organisation from the growing threat of hiring fraud.
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