Fraud in the recruitment process is nothing new but has been rapidly emerging as the main threat in the hiring process. HR teams and employers are trying to implement procedures to catch the fraudsters and prevent the costly and potentially hazardous errors of employing someone who claims to be something they are not. However, as fraudsters come up with increasingly clever methods to get around identity checking systems, managing and addressing these ongoing risks is becoming increasingly challenging.
Rising Sophisticated Fraud
Identity fraud in basic terms means pretending to be someone else by adopting another person’s identity. This is one of the most common forms of recruitment fraud. Clever software and websites, and the rise of AI and chatbots, has made detecting identity fraud during the recruitment process more difficult. Technological advancements in background screening and identity checks have also improved and can make it easier for employers to pick up fraudulent applications. Being able to verify identities online can also help detect fraudulent applications by picking up things which are easily missed by the human eye.
Impact of the Gig Economy and Remote Working
The emergence of the gig economy has also been a huge trend in recent years and the ability to hire short term or freelance workers allows companies to expand their talent pools to meet workforce demands better. The temptation might be to skimp on checks for someone who is only expected to be with your company a few months, but is this really wise? High turnover rates and pre-employment checks have increased pressure on HR teams the sheer volume of checks being processed may lead to things being missed. The surge in remote working made things even more difficult, with HR teams and managers trying to assess candidates over the internet rather than face to face as previously.
Importance of Identity Verification
Verifying individuals’ identities is the keystone of any pre-employment checking. It is a legal requirement in the UK to make sure that anyone being employed is in the UK legally and has the right to work here. Failing to check up on people who are being employed can land employers with very high fines for employing illegal workers. Workers in the UK are accustomed to being asked for passport and identity verification when applying for work, and this shouldn’t come as a surprise. However, employers must still take care to apply their checks fairly and must also keep careful records of checks to be able to show any compliance officers.
Training for Staff
Any involved in the recruitment process should be made aware of the issues around identity theft and fraudulent workers and should be educated about the importance of keeping records about documents inspected. Similarly, anyone applying for a job should be prepared for requests to provide documents to their employer. This isn’t just a case of an employer being awkward and trying to make the recruitment process difficult – it’s just them trying to comply with their legal obligations and avoid getting fines.
