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The Shocking Cost of Résumé Fraud

Resume fraud has become increasingly common due to the competitive job market. Here are ways to make sure you know who you’re hiring.


You’ve heard the old saying, “Honesty is the best policy,” but the rising dishonesty in the occupational sector suggests this virtue has gone missing almost entirely.


Starting from slight exaggerations and small white lies in yesteryears, job applicants have gone beyond all limits with résumé fraud thanks to the advent of high-tech scams. Now, a mere enhancement in education credentials is only a minor fraud, as job hunters have gone as far as to come up with fake employment histories, job references, degrees, and specialized licenses.


A Few Alarming Statistics  According to the U.S. Department of Commerce:


  • 75% of workers “steal” from their workplace repeatedly.
  • Internal thefts at the workplace are 15 times more likely than external thefts.
  • Losses due to embezzlement reach higher than $4 billion each year.
  • Employee theft leads to the failure of 30% of small businesses.


Coming back to the topic at hand, the increasing fraud in résumés traces back to the increase in unemployment, combined with challenging competition between applicants competing in the occupational sector for whatever few available job positions.


So what’s happening now? Jobseekers without specialized skills or degrees have begun lying and cheating on their résumés, which has become a significant problem for employers. Why so? Applicants lying on their résumés are more likely to become employees misrepresenting issues at work or, worse, destroying your entire organization.


The Catalysts in This Formula


Online services such as FakeResume and CareerExcuse are the ones who are making the most of this rising trend.


For about $199, you can buy a bachelor’s degree with transcripts, letters of recommendation, and verification services.


 What Can Small Businesses Do to Avoid This Fraud?


It is undoubtedly a daunting task to check up on references and confirm the accuracy of applications. But given the statistics, you can’t take risks on this. High-tech complexities surrounding occupational fraud these days make ascertaining who you are hiring more critical than ever.


Consider these few tips for avoiding any blunders in screening applicants:


When verifying employment history, could you ask the applicant about the months they began and ended working for the given employer? ‘2004-2005’ may seem like two years of employment when they could be just two months.


Could you ask the applicant about their previous employment in detail? You can directly contact earlier employers for verification. Don’t trust any “800” numbers, as they can be fake references. Always independently verify phone numbers.


While verifying education and training, verify the certifications and attendance directly with the institution.  Besides, check to ensure the institution is accredited, not just a degree mill. Also, verify licenses with the state agencies who’ve issued them.


Conduct civil records and criminal background searches where appropriate. This is a must for positions of trust and safety-sensitive jobs.


Conduct civil records and criminal background searches where appropriate.


If you or your HR department does not have the time or experience to check all aspects of the applicant’s resume thoroughly, you should not just forgo the verification; but instead, enlist the assistance of an employment screening company.


Employment screening companies have the experience and are up to date on all of the latest trends in résumé fraud. You can outsource as much or as little of the applicant screening process to a third-party background check provider and be confident that you have done your due diligence before bringing a candidate to your team.


Take some time out and get to know who you’re hiring. You can pay a hefty price if you do your homework.


You can visit our Employment Background Check web page to learn about our capabilities. 




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