Fraudulent Employment Applications up 160%

fraudulent employment applicationsI saw an interesting post today on Linked-in   The post referred to an article out of the UK that claims fraudulent employment applications are up 160%.  CIFAS is an organization out the UK and they published stats from the UK but I can only imagine that these statistics correlate to the US employment market.  One of the interesting parts of the article is when they explain how the fraud isn’t just a minor discrepancy or a small embellishment but a major false claims that can have huge negative impact on the business.  here is the quote:

“The dangers posed to an organisation by fraudulent applications for employment may be difficult to define simply. But, as CIFAS Staff Fraud Adviser Arjun Medhi notes: ”Such frauds are not defined by minor discrepancies in qualification history or CVs and forms where the applicant has slightly exaggerated their skills and experience. These are cases where the ramifications of the falsehood not being discovered might have profoundly damaging consequences: e.g. employing an individual previously dismissed for theft in a position with access to customer funds.”

Just yesterday we posted about how important it is to perform verification screenings such as employment history verification, education or degree verification, professional license checks and professional reference verifications.  By doing this you have an extremely good chance to find out the truth about the employment history of a person, how they get along with others and if they good performance marks.

I believe that with how competitive the job market is we will only see more applicants misleading, lying, exacerbating the truth and or committing fraud on their applications.  As an employer please do yourself a favor and spend a bit more money to verify what people put on their resumes.

Link to article – I have also posted the complete article below.

Analysis of frauds recorded on the CIFAS Staff Fraud Database during the first half of 2012, compared with 2011, revealed a notable increase in those recorded for employment applications containing serious material falsehoods (up by 160% from the first half of 2011).

‘Material falsehoods’ are those whose impact is far greater than a simple untruth: where the nature of the falsehood had a definite impact on the application (e.g. an applicant saying a previous position had ended for career development reasons when the applicant had actually been fired).

Understanding the issues

The dangers posed to an organisation by fraudulent applications for employment may be difficult to define simply. But, as CIFAS Staff Fraud Adviser Arjun Medhi notes: ”Such frauds are not defined by minor discrepancies in qualification history or CVs and forms where the applicant has slightly exaggerated their skills and experience. These are cases where the ramifications of the falsehood not being discovered might have profoundly damaging consequences: e.g. employing an individual previously dismissed for theft in a position with access to customer funds.”

Explaining the increase

As economic and employment problems persist for many, increases in fraud of this kind are unsurprising. The increase underlines, however, the importance of proper vetting procedures and checks. Establishing that an applicant is who he or she claims to be (in terms of identity, professional qualifications and employment history) is essential in ensuring that a position is taken by a suitable candidate, as opposed to one more likely to cause further (deliberate or unwitting) damage.

The dangers for individuals must also not be overlooked. Arjun Medhi notes: “With competition for employment still fierce, it is understandable how some individuals might be tempted to pursue this course of action. They should not underestimate the consequences, however; as committing fraud to obtain employment can result not only in dismissal but also – potentially – in criminal charges; exacerbating the difficulty in obtaining employment. In such circumstances, honesty really is the best policy.”

Closing comment from a CIFAS Staff Fraud Member

Chris Webster, Risk Manager from Yorkshire Building Society (which is a Member of the CIFAS Staff Fraud Database) notes: “’Time and time again, our organisation sees individuals who fail to disclose important material information in support of employment applications: whether this is an undisclosed adverse credit history or wholly inaccurate information on CVs and applications. In these cases, not only are these applicants wasting the recruiter’s time but also their own. Therefore honesty and full disclosure is always the best course of action: if in doubt, spell it out!”

 

If you enjoyed this post, please consider leaving a comment or subscribing to the RSS feed to have future articles delivered to your feed reader.

Written by

No Comments Yet.

Leave a reply

Login

Lost your password?