Crosschq Data Labs, the research arm of Crosschq, the world’s first Hiring Intelligence platform purpose-built to increase Quality of Hire, has uncovered an alarming increase in job candidate fraud. More candidates are committing fraud during the application process than ever.
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After analyzing close to 200,000 data points between January 2021 and May 2023, Crosschq Data Labs found that candidates are almost four times more likely to intentionally misrepresent themselves than they were in 2021. Whether to cover up a skills gap or break in employment, fraud instances have skyrocketed, especially in the high-volume hiring sectors where some fraud rates exceed 7 percent. Crosschq Data Labs has shown that on average, candidates who were flagged as having committed fraud in the reference process will have 27 percent lower Quality of Hire scores.
“Perhaps the most alarming takeaway from our research is that job candidate fraud is occurring in industries where an unsuitable hire could directly impact the well-being, safety or financial security of a significant population,” said Mike Fitzsimmons, CEO of Crosschq. “For example, our research uncovered job candidate fraud across school systems and healthcare organizations, as well as in financial institutions. The potential for nefarious activity can lead to significant harm, even with a single bad actor being hired.”
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Some industry experts attribute the increase in fraud to the increase in remote work. Tim Sackett, President of HRU Technical Resources commented, “I’m not surprised to see candidate fraud rise with the excessive amount of remote work that has taken place. The reality is, only some people are more productive working remotely.” Sackett contends that those who weren’t performing and have been let go likely had fewer work relationships who could support their “positive” performances and therefore need to feel compelled to “make up” their own references, creating fraud.
“Trust is the cornerstone of the employer/employee relationship,” added Fitzsimmons. “Measuring and monitoring a meaningful metric such as Quality of Hire can inform numerous aspects of the candidate to employee journey. Accurately measuring this variable can make or break a company; it is vital to the continued or future success of any organization.”
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