Is your hiring process at risk? How HR can uncover fraud

Common fraud tactics in the hiring process

Recruitment fraud manifests in various forms, particularly in fast-growing economies with large youth workforces like India, Indonesia, Vietnam, and the Philippines. Common tactics include the following:

• Fake employment certificates from shell companies or paid agencies.

• Forged educational degrees from unrecognised or unaccredited institutions.

• Deep fake or AI-generated video interviews, particularly for remote positions.

• Falsified salary slips, Form 16s, and tax documents to inflate compensation history.

• Moonlighting or dual employment, especially common in the gig economy.

• Identity fraud using altered or borrowed documents.

A NASSCOM survey found that nearly 12% of tech job applicants in India submitted fake experience credentials — a problem expected to rise with increasing global outsourcing.

Vietnam has seen an uptick in fraudulent diplomas from overseas ‘degree mills’. In Indonesia, recruitment agencies flagged a rise in manipulated LinkedIn profiles and social proof references. Similarly, Malaysia reported frequent ‘job hopping concealment’, where applicants omit short stints or terminations.

Pre-offer prevention is crucial: The first line of defence

Pre-offer screening allows HR teams to intercept fraudulent profiles before formal hiring processes begin. Here’s how modern employers are acting early:

Tech-enabled document authentication: Many Indian and SEA companies now deploy AI-powered document verification tools that can detect forged or manipulated documents using pattern recognition, metadata analysis, and blockchain-based validation. These tools compare uploaded documents against verified databases or digital footprints to assess authenticity, saving time and avoiding costly onboarding mistakes.

API-based education and employment verification: Companies like SpringVerify and IDfy in India, or Cekindo in Indonesia, offer real-time API integrations with government databases and university records. This significantly speeds up checks for employment history, tax returns, and academic qualifications, flagging inconsistencies before an offer is extended.

Video interview intelligence: To counter deepfake risks, platforms now employ liveness detection, biometric recognition, and behavioural analytics during video interviews. This ensures that the candidate present is indeed who they claim to be and helps detect anomalies in voice, background, or facial expressions.

Post-offer and ongoing monitoring: Sustaining integrity

Verification doesn’t stop at hiring. Continuous employee monitoring, especially in remote or hybrid environments, is becoming an essential part of workforce governance.

Recurrent background checks: Leading companies in India and Southeast Asia are adopting annual or biannual re-verification protocols, especially for sensitive roles in finance, technology, and data handling. These checks detect undisclosed criminal records, new liabilities, or dual employment risks.

Digital footprint and behavioural analysis: AI-led platforms can also evaluate a candidate’s digital footprint—professional activity, public domain behaviour, and social presence—to detect discrepancies between what’s presented on resumes and real-world engagement.

Moonlighting detection: Moonlighting is a growing concern, especially in India’s IT sector. Companies are using network traffic monitoring, IP tracking, and dual log-in checks to determine whether employees are engaged with multiple employers simultaneously. These tools help maintain productivity and protect proprietary information.

Human + Tech: A balanced strategy

While technology plays a crucial role, human judgment still remains indispensable. A combined strategy of tech-led screening and expert validation is the key. HR professionals must be trained to read between the lines, spotting resume red flags, understanding context, and asking the right questions during interviews.

For instance, an employment gap during a pandemic may be justifiable, but a mismatch between claimed roles and listed responsibilities could indicate resume padding. Peer reference checks, though sometimes overlooked, offer valuable insight into a candidate’s integrity and real contribution to past roles.

Building a culture of compliance and ethics

In addition to detection, prevention must be part of the company culture. Here’s how:

• Clear communication of zero-tolerance policies toward resume fraud.

• Strict pre-onboarding documentation protocols, including notarised submissions or e-signature audits.

• Whistleblower mechanisms that allow current employees to report suspected internal fraud discreetly.

• Collaboration with third-party verification firms who understand local legal and compliance landscapes.

As India’s labour laws evolve and Southeast Asian countries like Vietnam and the Philippines tighten regulatory oversight, staying compliant while hiring will also require HR teams to continuously adapt.

Companies must gear up for a future where speed and scale are non-negotiable, but so is security. By leveraging modern background verification technologies — AI, blockchain, real-time APIs — along with human intelligence and ethical hiring practices, companies can stay ahead of fraudsters. They can ensure that their workforce is not just skilled, but trustworthy and aligned with their organisational values.

As the ACFE 2024 report notes, preventive controls reduce fraud losses by up to 50%. Investing in robust hiring protocols today can save businesses from reputational and financial damage tomorrow.