Don’t Let Candidate Fraud Keep You From Hiring Globally
Navigating labor law and people analytics for secure international recruitment
Posted on 01-22-2024, Read Time: 5 Min
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Highlights:
- Employment fraud in an H-1B application might include falsified education records like degrees and certifications to meet eligibility requirements.
- Avoidance of labor certification requirements can take the form of candidates receiving unusually quick approvals for visas or work permits.
- Proactive training and the necessary expertise in effective hiring practices for global recruiting can help prevent candidate fraud.
With remote workers, hiring is no longer bound by ZIP codes, state lines, or even national borders, and that means organizations can build highly skilled, diverse teams regardless of where their headquarters are located. Employees and organizations alike are benefiting from remote work, with the percentage of days worked remotely in 2023 being four times higher than it was in 2019, even as return-to-office mandates take effect.
But over the past few years, a sharp uptick in candidate fraud has some hiring managers questioning whether a global approach still works. Scammers are taking advantage of emerging technologies like artificial intelligence (AI) in hiring processes, causing some hiring managers to curtail international hiring to avoid falling victim to candidate fraud.
The decision to avoid global hiring puts companies between a rock and a hard place, as it eliminates the benefits of a globally distributed workforce, leaving them vulnerable to labor shortages and lost economic opportunities. Instead, hiring managers should become more familiar with common types of candidate fraud and better acquainted with international hiring complexities – not only to protect the organization, but also the legitimacy and integrity of real prospective candidates whose skills can drive growth.
With proactive training and the necessary expertise in effective hiring practices for global recruiting to prevent candidate fraud, your organization can continue to build skilled and diverse teams globally, all while remaining compliant with a multitude of regulations. There is plenty of talent out there waiting to be tapped into for the next big project and candidate fraud should not hinder your international recruitment efforts. Instead, remain vigilant and follow the steps outlined above to ensure continued global workforce expansion while safeguarding against malicious actors.
But over the past few years, a sharp uptick in candidate fraud has some hiring managers questioning whether a global approach still works. Scammers are taking advantage of emerging technologies like artificial intelligence (AI) in hiring processes, causing some hiring managers to curtail international hiring to avoid falling victim to candidate fraud.
The decision to avoid global hiring puts companies between a rock and a hard place, as it eliminates the benefits of a globally distributed workforce, leaving them vulnerable to labor shortages and lost economic opportunities. Instead, hiring managers should become more familiar with common types of candidate fraud and better acquainted with international hiring complexities – not only to protect the organization, but also the legitimacy and integrity of real prospective candidates whose skills can drive growth.
Watch Out for These Red Flags
Global hiring can help companies fill critical gaps with highly skilled remote workers, but it is important to complete due diligence to avoid fraud. A 2022 Association of Certified Fraud Examiners’ Report to the Nations found that more than 20% of the organizations that reported being victims of candidate fraud had disregarded several red flags raised in background screenings. Fraud techniques can include:- H-1B visa misuse: H-1B visas allow U.S. employers to hire foreign workers in specialty occupations on a temporary basis. Employment fraud in an H-1B application might include falsified education records like degrees and certifications to meet eligibility requirements. Fraud might also include forged diplomas, driver’s licenses, or letters of recommendation.
Often the forged documentation is prepared by unscrupulous subcontractors that work with staffing agencies. In addition to providing falsified documents, the subcontractor may coach job candidates on keywords and industry-specific jargon to simulate a qualified candidate. Employers should ensure any staffing partners or vendors they work with have a good reputation and extensive expertise in global recruitment.
- Avoidance of labor certification requirements: While H-1B visas allow employers to hire specialty workers temporarily, employers can apply for a permanent labor certification from the U.S. Department of Labor (DOL) to hire foreign workers permanently if there are insufficient U.S. candidates.
Avoidance of labor certification requirements can take the form of candidates receiving unusually quick approvals for visas or work permits, which are typically difficult and time-consuming to acquire - deceptive claims about employment history give the erroneous impression of continuous work experience and documents that closely match the job description. Candidates avoiding engagement with local workforce agencies or making attempted requests for exemptions from standard hiring practices should also be reported by hiring managers.
- Worker misclassification: Misrepresentation of job titles, job duties, or employment history is another common fraud technique. Misrepresentation can not only negatively impact the candidate but can also have severe consequences for an organization. Even if the misrepresentation was unintentional, accurate classification of employees and detailed documentation are crucial to avoid any legal repercussions.
In some cases, it makes sense to hire employees as independent contractors, but it is important to be aware of the strict rules governing contractor hiring, and regulations frequently vary by country. If an employer advertises for a full-time employee and a candidate asks to be hired as an independent contractor instead, that is a red flag worth checking out to ensure the jobseeker is legitimately qualified.
Preventing Candidate Fraud
Having an in-depth understanding of the nefarious techniques used by candidates in instances of fraud and where in the hiring process they occur most often can help hiring managers avoid hiring a candidate who puts the organization at risk of noncompliance. While a valuable starting point, here are additional tips to help prevent candidate fraud when hiring internationally:- Stay informed on fraud trends and labor regulations: Educating your hiring teams on the latest fraud schemes is crucial in proactively combatting scammers. While company-wide memos and updated training resources are useful for helping hiring managers keep up with shifting labor laws and foreign worker requirements, frequent changes in regulations can make it challenging for organizations to continuously update and maintain accurate information. Many companies find it beneficial to partner with organizations specializing in global hiring, who often can provide real-time answers and support around navigating new trends and regulations.
- Update hiring practices regularly: It is a good idea to update policies related to hiring, ethics and compliance periodically, and then reinforce these changes in regular training sessions to ensure employees are aware of the risks associated with candidate fraud changes and know the protocols for reporting suspicious activities. Outside expertise can also be helpful in this scenario since organizations that specialize in international hiring will have experience and proven processes in place to screen out fraudulent candidates.
- Audit hiring processes on a regular basis: Regular internal audits of the hiring process audits help identify and mitigate vulnerabilities that may arise from emerging technologies, like AI, or granular changes in local, state, or country-specific regulations. Partnering with a legal expert or compliance team in the regions you are recruiting from can be the difference between letting bad actors slip through the cracks and establishing stringent screening processes that keep them out. Tools such as online proctoring systems, which allow employers to monitor exams being taken in real-time, can be a valuable verification method, especially in remote hiring scenarios.
With proactive training and the necessary expertise in effective hiring practices for global recruiting to prevent candidate fraud, your organization can continue to build skilled and diverse teams globally, all while remaining compliant with a multitude of regulations. There is plenty of talent out there waiting to be tapped into for the next big project and candidate fraud should not hinder your international recruitment efforts. Instead, remain vigilant and follow the steps outlined above to ensure continued global workforce expansion while safeguarding against malicious actors.
Author Bio
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Katherine Loranger serves as the Chief People Officer at Safeguard Global. |
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