Fake job postings and fraudulent applications are undermining trust between employers and jobseekers, with new research pointing to the need for greater transparency and a stronger human element in recruitment.
According to iHire’s 2026 State of Online Recruiting Report, 19.2% of employers identified fake or fraudulent applicants as one of their leading online recruiting challenges. Nearly one in four employers (23.6%) said they had encountered at least one fraudulent applicant in the past year.
The concern is even more pronounced among jobseekers. Some 39.3% identified fake, fraudulent or “ghost” jobs as a major challenge when searching for work, while 41.2% said they had encountered a fake or scam job over the past year.
Trust is also being tested after candidates submit applications. About 42.8% of jobseekers said they are increasingly frustrated by determining whether a job or employer listed on a recruiting platform is legitimate. Another 57.5% said they are frustrated by uncertainty over whether employers will respond to their applications.
“Our research shows that trust, transparency, and human connection matter more than ever in recruiting,” said Steve Flook, president and chief executive officer of iHire.
“Employers are receiving unqualified and sometimes fraudulent applicants, and job seekers are questioning whether opportunities are legitimate and if they'll hear back after applying.”
The findings come as employers continue to experiment with artificial intelligence in recruitment, while candidates remain cautious about how the technology is being used to evaluate them.
The iHire report found that 44.3% of jobseekers view employers’ increasing use of AI negatively. This follows research from Gartner, which found that 25% of candidates trust employers less when AI is used to evaluate their information.
At the same time, the proportion of employers reporting that they use AI in recruiting declined slightly to 24.2%, from 25.9% in 2025.
Among employers using AI, administrative and content-related tasks remain the most common applications. These include writing job advertisements, cited by 66.2% of employers, composing candidate communications at 62.3%, and automatically sending messages at 31.2%.
Nearly three in 10 employers (29.9%) use AI to screen applications or CVs. The findings suggest that the challenge for recruiters is no longer simply whether to adopt AI, but how to use it without further weakening candidates’ confidence in the hiring process.
The report also highlights basic transparency measures that can influence whether candidates engage with an employer.
Salary information is one such factor. Some 60.7% of jobseekers said they would not apply to a company if its job posting did not include salary information.
Employer visibility outside the job posting also matters. About 70.4% of jobseekers said they visit a company’s website before applying. Meanwhile, 45.1% said they first review an organisation’s profile on a job board, while 35.2% look at employee testimonials.
For employers, these findings point to candidate experience, employer branding and clear communication as important elements of the recruitment process alongside technology.
“Moving forward, companies that blend the human touch with technology, promote a strong employer brand, and provide a positive candidate experience will be best positioned to find the right talent,” Flook said.