Tighten Up Your Background Screening to Combat Identity Fraud

Not everyone is trying to fake it. However, there are enough fraud-doers out there that employers need to take precautions to sniff them out.

Candidates who misrepresent themselves can pose serious risks to your organization. It’s crucial to beef up your background screening process to catch dishonesty before it infiltrates your workplace. By identifying and addressing red flags early, employers can avoid ill-equipped hires, costly mistakes, and maintain a transparent, trusting culture.

What Is Candidate Fraud?

1 in 14 job candidates commit some type of fraud.

Candidate fraud occurs when job applicants use dishonest tactics to misrepresent themselves during the hiring process. This can include:

• Falsifying credentials (inflating education or work experience).
• Providing fake references.
• Assuming false identities to conceal their true background.

These deceptive practices pose significant risks to employers who fail to detect them. Hiring a fraudulent candidate can lead to:

• Financial losses.
• Brand damage.
• Legal complications.
• Harm to the company culture.

Using Strategic Background Screening to Combat Candidate Fraud

Understanding and identifying candidate fraud is the first step in protecting your organization and ensuring a trustworthy hiring process.

Employers should implement these six actionable ways to reduce the impact that candidate fraud has on your company.

1. Add New Technology

Technology is evolving rapidly, which is good news for fraud fighters. Leveraging advanced background screening technology like Data Facts' vID can help identify and eliminate fraud during hiring. In addition, AI-driven tools and automated systems can flag inconsistencies, verify data, and detect potential red flags faster than traditional methods. Technology also streamlines processes, reducing human error and enabling real-time monitoring to stay in compliance.

2. Train Hiring Teams on Fraud Awareness

Equip your hiring teams with the knowledge and tools to identify fraud’s red flags.

• Start by providing standardized fraud awareness training to HR professionals, hiring managers, and recruiters. This training should focus on common tactics candidates use, like creating titles, using stolen identification, or masking gaps in employment.
• Teach teams how to scrutinize resumes, verify documents, and ask targeted questions during interviews to uncover inconsistencies.
• Incorporate hands-on practice with scenarios and real-world examples to build confidence.

3. Verify Identity at Every Step

If you don’t catch issues with your job applicant’s identity, subsequent screening will be for nothing. Candidates often use false identities or stolen credentials to deceive potential employers. To counter this, implement comprehensive identity verification measures at multiple stages of the hiring process. Request government-issued photo IDs during initial application reviews.

• Verify these documents using specialized software or third-party services.
• Use biometric tools, like facial recognition or fingerprint scanning, for roles requiring higher security clearance.
• Conduct (when possible) in-person document verification to cross-check details with the applicant.
• For remote roles, use secure video interviews where candidates must present IDs on camera.

These layers of verification ensure candidates are who they claim to be.

4. Partner with a Hands-On Background Screening Vendor

Choosing the right background screening vendor is one of the best ways to prevent candidate fraud. Look for a vendor that:

• Is accredited by the Professional Background Screening Association (PBSA).
• Holds a SOC 2 Type II designation, which ensures adherence to the highest standards of security, accuracy, and data privacy.

A dedicated background screening partner goes beyond generic solutions, tailoring services to your company size and industry needs. The vendor should use both technology and human review to evaluate reports and catch discrepancies.

5. Execute a Process for Monitoring Current Employees

Fraud prevention is not a one-and-done initiative. Ongoing employee monitoring, particularly in sensitive roles like finance, healthcare, or security, is essential.

Depending on the position, periodically check:

• The motor vehicle registry to ensure drivers maintain valid licenses.
• Drug use to catch potential issues early.
• Criminal record searches to identify new risks.

Ongoing monitoring allows employers to address emerging risks before they escalate, maintaining a trustworthy and highly productive workforce.

6. Regularly Evaluate Your Company’s Screening Policies

Fraud tactics evolve rapidly, making it essential to review and update your background screening policies regularly. In addition, new tools and technologies, like AI-driven identity verification and real-time monitoring solutions, are continually being developed to improve accuracy and detection.

Stay informed about advancements in background screening technology and incorporate them into your processes to stay ahead of emerging threats. Additionally, ensure your policies align with changing regulations and industry standards (for compliance’s sake). Periodic evaluations help identify gaps, address vulnerabilities in your process, and refine your practices.

Background Screening Is Your First Line of Defense Against Candidate Fraud

As long as people need jobs, there will be some who try to cheat, lie, and misrepresent themselves. Letting these applicants slip through the cracks can be detrimental to your company’s culture and bottom line.

Catching candidate fraud takes a proactive approach. Add these six recommendations to your background screening policy for peace of mind that you’ll pinpoint false candidate information early in the process. Doing this creates a well-executed background screening strategy that safeguards your workforce and protects your company from harm.