Fraud within the recruitment industry

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Recruitment fraud has grown by almost 50% in the last 10 years, and a recent report carried out by Crowe in association with the University of Portsmouth estimates that it costs the UK economy up to £23.9 billion.

When someone lies during the recruitment process, either within their CV, application form, or in interviews, it can be defined as recruitment fraud. It often includes lying about experience, employment history or qualifications to ensure the applicant gets the job. Any falsehood which is designed to influence the decision of the hiring company is, in essence, fraud.

Recruitment fraud is a big problem both in the UK and internationally. Auditing firm Crowe investigated one company in UAE, and discovered that 80% of the 5,000 CV’s checked included discrepancies. Fake documents are also a major issue, with one organisation found to have provided over 3,000 counterfeit documents to people in the UK. Right to work checks are necessary for all employees in the UK, employing someone who does not have the legal right to work in the UK carries a £20,000 fine.

Fraud can be a significant cause of financial and reputational costs to any company. The cost of detection and rehire is just the beginning. Fraudulent applications might result in misconduct or poor performance, further fraud, theft or noncompliance. In addition, with many roles reliant on specific experience or education, public safety is often put at risk.

Recruitment fraud also denies genuine applicants deserved employment and puts the hiring company at risk, both in a financial and reputational context.

Having a recruitment procedure in place, which includes comprehensive pre-employment checks, can help protect your company against recruitment fraud, and in turn prevent further misconduct from fraudulent employees.   

Using a reputable screening company can help ensure that the correct checks are carried out for your industry and role, to comply with legislation and protect your company from the risk of recruitment fraud.