We’re seeing a trend in fraud and scams connected to hiring that is getting a little concerning. Candidates stretching the truth on things like dates of employment is not new…for example, saying they worked somewhere for a year when it was only 6 months. But some of the latest scams we’re seeing are more nefarious. We’re seeing more candidates lie about their experience, education, salary, certifications, and even their location. Some companies are at bigger risk than others, but this is a subject we all need to be aware of and we want to talk more about it. Here’s a summary of what we’re seeing and some tips on what you can do to reduce risk when it comes to minimizing hiring fraud at your company:
1. Trust but Verify. Many businesses have fallen away from fact checking because it’s complicated and time consuming – but adding this step into your hiring process is critical in helping you avoid scams quickly before you have much to lose. Confirming current and past job titles and dates of employment, along with verifying education and licenses/certifications used to be more common and it’s a good way to weed out people who are not honest or qualified. You’d be surprised at how many people lie about these things.
2. Conduct Criminal Background Checks. This is an important step of any hiring process and it significantly reduces your risk. This process takes a little time when done properly and thoroughly, and it’s not free – but it is incredibly important part of ensuring you make a safe hire. For roles in Finance and IT where an employee will have access to incredibly sensitive company data and financial information – we often suggest fingerprinting at this level to add an extra layer of security. You’d be surprised at how many candidates won’t make it thorough this stage or will ghost you once you mention that this is part of your process.
3. Meet People in Person Whenever Possible. A higher number of remote jobs combined with an urgent need to fill them creates more space for location fraud. If you’re not thoroughly vetting people before you send them their tech – this is risky. Whether it’s using a Virtual Private Network (VPN) to mask their location or getting a laptop sent to a friend’s house, lying about where you live is getting pretty common. One way to circumvent this is to have someone’s first day be in the office (if you have one), or having someone in HR or IT meet them somewhere in person (like at a co-work space, a coffee shop, or another public location) on an their first day if you don’t have an office. We’ve seen people pull out of a job when told they had to meet in person for their first day and this is a good way to weed out candidates who may be claiming to be located in a certain state (or country) but really they live somewhere else.
4. Grant access to computers and systems with caution. Never give a newly hired employee access to log into their computer or any of your systems before their first day of work. And if for any reason their background check or employment/education verifications are not completed by their start date, consider extending it. These things are critical layers of protection for any business, but particularly for those in IT, Finance, and Healthcare where there is a higher level of sensitive and protected information on your systems. Anyone who pushes for access or attempts to log in repeatedly before their start date should be considered a red flag.
5. Check References. This step used to be more common too, but it’s also started to fade from popularity. Checking references is an important and fascinating part of the hiring process. Who your candidate chooses as a reference can also be very revealing. Asking for at least 2 professional references is a great way to learn more about your potential employee’s background and personality. Sometimes references are surprised when you call them, which means your candidate did not communicate properly with them – an interesting data point. Sometimes references have been very obviously prepared to tell you specific things – another interesting data point. Sometimes references will surprise you by being unprofessional, rude, vague, overly chatty, and/or absolutely delightful and helpful. These are all good data points whether the experience is positive or negative, and it gives you additional insight into your candidate.
It takes time to make a smart hire, but it’s worth it. Knowing that scammers and fraudsters are out there – and hiring fraud is on the rise means your guard should always be up. If something feels off, it probably is so listen to your gut and talk with your leadership team about the importance of spotting and acting on red flags.
Have an HR or people question? Reach out to us by phone if you want to speak to a human, or by email or webchat if you want to start a virtual conversation. We love helping growing companies thrive and we’d love to hear from you!
