Resume fraud is the act of hiring a person without a background check and then having the applicant provide false information to improve their chances of being hired. This is a criminal act that can cost your company in countless ways. If you’re not careful and diligent in how you hire new employees, you could soon be out of work. If a scammer has gotten in, your business is now at risk for leaks, security breaches, and many other problems that are bound to arise. In this blog post, I will walk you through the different types of resume fraud and explain how resume fraud costs your company.
Types Of Resume Fraud
Whether hiring for Louisville KY entry level jobs, seasonal, or permanent positions, recruiters and hiring managers will use various methods to screen applicants. Resume fraud techniques change and get more complicated, even within the same type of job. The most common types of resume fraud include:
Resume Redacting
This is where an applicant can remove the section that details their history with the company. This can be done at any time during the application process and usually occurs when they apply for more than one position at a certain workplace. The fact that they have already been hired and you don’t know about it is enough reason to raise a red flag.
Resume Editing
This is when an applicant gives you false details about their job history. It can be as simple as filling in a blank spot on their resume and saying they were hired by a company when they weren’t, or the more complex ones where they give you fake names, education information, and other details. The best way to tell if Editing has occurred is if their dates of employment aren’t accurate. Mistakes are much easier to notice if the applicant has already been hired.
Resume Falsification
This is the act of filing a resume that completely changes the applicant’s history before arriving at your company. They might have lied about their education, obtained fake references, or just made up dates of employment. Any of this will raise red flags and could lead to you being out of work. If a scammer has gotten in, it’s best to immediately stop all hiring for your company as soon as possible.
Resume Theft
This is where an applicant steals a resume from another source and takes it to your company. They can take this information and use it to apply for a job, even if they have no intention of working at your company. It’s best to use different resume sources whenever possible, as this will make it harder for them to find one that works perfectly with their information. You should also use a resume scanning system to scan for any inconsistencies or red flags in the information they provide. It’s also important to remember that thieves have been known to steal resumes from job sites and databases, so try to be careful when using them as your next resource.


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How Does Resume Fraud Cost Your Company
Most employers don’t realize that there is more at risk than just the loss of work hours. They could also be exposing their business to many other risks, including:
Loss of Intellectual Property
A single employee hired without a background check could lead to your company’s IP being leaked. This is especially true for sensitive documents where you don’t want competitors or even the general public to see them. You might have the most secure locker room in the world, but if someone has broken in, you can kiss your IP goodbye. If this happens, many employees will typically find themselves out of work.
Competitive Edge
If you’re looking to gain an advantage over the competition, it’s best not to hire an employee who could potentially provide that for them. This might be true if the employee hired without a background check was recently laid off from a competitor or has worked under one for a long period. They might have all sorts of inside information about your company, and if they use it against you, you can kiss your competitive edge goodbye.
Legal Ramifications
Employers are legally allowed to test their employees as often as they like, and if they find out an employee is lying on their resume and doesn’t hire them through the proper channels, you could be in trouble. This serious issue could lead to the employee suing your company for discrimination. Remember, hiring someone without a background check and then firing them for the cause with no background check is considered discrimination.
Data Breaches
If a scammer has gotten in, you can expect security issues to pop up. Since they have already entered your system, they might be able to access all types of sensitive information. This will also lead to them accessing and distributing any information they stole from your database. If this happens, it could cost you a lot of time and money and out-of-work employees. You might also see leaks across the board if your company shares anything with other companies or governments. To protect your company from data breaches check out the best cyber insurance companies online.
Unfortunately, there are many reasons why employers get scammed by resume fraudsters. It’s hard even to imagine the damages that can occur if one of your employees gets hired and then decides to break the law. If you’re worried that you could be scammed as an employer, it’s best to take every precaution before making a single hire.