Remote work has created many wonderful avenues for employers to expand their talent search and find more candidates with the right skills and experience. It has made the hiring process more flexible and accessible.
However, remote work has also opened the floodgates to fraudulent applicants. These individuals waste significant time and resources, while real job candidates miss out on career opportunities. To avoid these threats, companies must design hiring processes that combat fraud and build trustworthy teams.
The Rise of Job Applicant Fraud in Remote Hiring
Hiring used to be more straightforward. It involved sending a resume, meeting face-to-face and shaking hands. Now, technology is replacing traditional hiring methods with digital screenings and video calls, and fraudsters are finding ways to manipulate companies in new ways.
This deception goes as far as using AI-generated voices, deepfake video technology and fake identities to secure remote roles. One company experienced this threat recently. Despite presenting themselves as a qualified U.S.-based candidate for a senior engineering role, an individual turned out to be using a false identity to scam the business.
During the interview, the employer knew something was off when they saw that the candidate’s facial expressions were out of sync while speaking. Instances like these are becoming increasingly common as bad actors exploit hiring software tools and a lack of in-person meetings.
Fraudsters are also using AI to write their resumes. With numerous AI resume builders available today, it is easier than ever for applicants to game automated hiring systems. AI resume tools work by scanning job descriptions and crafting resumes to hit every keyword and skill requested. While this technology can help candidates put their best foot forward, it’s increasingly being used to fabricate skills and experience.
As a result, fraud in hiring processes has become widespread. A recent study found seven out of 10 workers admit to lying on their resumes, with 37% admitting they’ve done so more than once. It’s a growing threat that can lead to increased costs, security risks, and wasted time and resources.
Key Risks of Failing to Address Hiring Fraud
Disregarding hiring fraud is a business risk that can hit organizations where it hurts most. One of the top risks is cybersecurity. Fraudulent applicants can hack into systems and gain access to sensitive data. Some fake job seekers may be looking for a paycheck, but others take advantage of the company’s digital infrastructure.
Once inside, these bad actors can install ransomware or other malicious software and put the entire organization at risk. Recent data shows that the median loss from ransomware attacks in 2023 was over $49 million and continues to rise yearly.
There’s also the financial cost of a bad hire to consider. In addition to recruiting, onboarding and training, businesses face additional fees when forced to terminate an underqualified employee. Gallup estimates that the total cost of replacing an employee can reach up to 80% of the annual salary of a professional in a technical role.
Plus, there is the time lost, a hit to team morale and potential damage to client relationships. The risks are far-reaching and increasingly expensive.
Building a Fraud-Resistant Hiring Process
To prevent hiring fraud, companies must take intentional steps to verify candidates.
Strengthen Resume and Credential Verification
Falsified work history, inflated job titles and fake degrees are common tricks fraudulent applicants use. To counter this, employers use professional verification services to cross-check education, employment history and certifications. This step alone can highlight red flags early.
Research shows that companies have found discrepancies in about half of the employment verifications conducted through background screenings. Even small inconsistencies can highlight a need for further investigation. Verifying technical certifications or requesting real-world examples can validate a candidate’s claims.
Implement Multi-Layered Interview Processes
A single interview isn’t enough to make hiring decisions, especially in remote settings. Organizations can enhance their defenses by implementing multiple interview rounds with different team members and incorporating technical assessments or live problem-solving sessions.
Using structured interviews can lead to better hiring decisions, as they help weed out candidates who may stumble when faced with more evaluation.
Leverage Live Video Interviews and Technology Safeguards
Live video interviews can confirm a candidate’s identity and reduce the risk of deepfakes or impersonation. Consider conducting video calls with cameras turned on throughout the process. Some organizations also use AI tools to analyze voice patterns, facial expressions or typing behaviors to detect inconsistencies.
Indeed found that 82% of employers used virtual interviewing during the COVID-19 pandemic, and 93% plan to continue using this method in the future. Since most organizations find this model the most beneficial to their hiring processes, they must take precautions and implement technological safeguards.
Conduct Probationary or Project-Based Trial Periods
Some companies opt for short-term trial projects or probation periods before fully onboarding new remote employees. This strategy lets managers see how well new hires perform before making the position permanent. Paid project work or freelancing before hiring is common in technical roles. They allow the candidate to prove their worth and whether they’re the right fit.
Discuss Expectations
Clear communication about the hiring process — including verification checks and trial periods — can deter bad actors before they apply. At the same time, clarity builds trust with actual candidates who value a fair and ethical hiring experience. Being upfront about the steps involved creates a culture where honesty is expected from day one.
Staying Ahead of Hiring Fraud in a Remote World
Remote work may be here to stay, but as companies look for potential candidates, they must remain aware of fraudsters’ tactics. Awareness is only the first step to building a fraud-resistant hiring culture. Other measures should be implemented to lower the risk of deception and ensure hiring remains secure.
