Fraud-as-a-Service in Recruiting: A Growing Threat
Thank you
Stay tuned for expert tips and insights on fraud detection and hiring security.
Subscribe to TurboCheck's blog for insights on candidate fraud and hiring security.
Subscribe
Fraud-as-a-Service in Recruiting: A Growing Threat
2 min readDec 24, 2024
The hiring process has always been a delicate balance of trust and verification. However, with the rise of digital hiring and remote work, fraudsters have found new ways to exploit this system. Enter Fraud-as-a-Service (FaaS) in recruiting—a thriving underground industry providing tools and services that enable individuals to game the recruitment process and secure roles they’re unqualified for. From fake references to real-time interview coaching tools, these services are reshaping the hiring landscape—and not for the better.
What Is Fraud-as-a-Service in Recruiting?
Fraud-as-a-Service refers to the commodification of fraudulent practices, where bad actors sell tools, resources, or services designed to deceive employers during hiring. This underground market has grown alongside the increasing reliance on technology for recruitment, creating opportunities for fraudsters to profit.
What Makes FaaS So Dangerous?
Unlike traditional fraud, which relied on technical expertise, FaaS has lowered the barrier to entry for deception. Individuals who lack the skills to commit fraud themselves can now rent or buy tools and services, often accompanied by step-by-step guides. No expertise is required—only the funds to pay for these services.
The Role of Crypto and Social Media in FaaS
The accessibility of Fraud-as-a-Service (FaaS) is significantly enhanced by the anonymity provided by cryptocurrencies and encrypted communication platforms like Telegram, which enable criminal enterprises to thrive and scale their operations with ease. Underground marketplaces, once obscure, now host thousands of fraud-related services, from fake references to phishing kits. Meanwhile, social media platforms like Facebook and encrypted groups on Telegram have become hubs for stolen Social Security Numbers (SSNs), fake IDs, and even proxy interview services, allowing fraudsters to market their offerings and expand their operations while evading detection.
What FaaS Types Are Used by Fraudulent Candidates?
Fraud-as-a-Service in recruiting encompasses a wide range of deceptive tactics, each designed to exploit weaknesses in the hiring process:
AI-Generated Resumes: Fraudsters use sophisticated software to create polished resumes filled with fabricated skills and achievements, specifically designed to bypass Applicant Tracking Systems and impress hiring managers.
Proxy Interviews: Fraudulent candidates hire professionals to impersonate them during interviews, often using advanced tools like voice changers and shared desktop access to deceive interviewers.
Interview Copilots: These mobile apps can listen to a video interview and provide real-time assistance with scripted answers, enhancing candidates' responses to appear highly competent.
Fake References: Fraudsters rely on actors or services to pose as HR representatives or managers, offering convincing but fabricated validations of their work experience.
Fake Employment Credentials: Entire fake companies are created to provide fabricated job histories, complete with professional websites, offer letters, and verifiable documents. Read more about job applicants with fake companies.
Stolen Personal Information: Fraudulent candidates use stolen Social Security Numbers and other personal data to bypass identity and background checks during onboarding.
Real-Time Deepfake Tools: Combining voice modulation and video deepfake technology, fraudsters alter their speech and appearance in real time to impersonate others or match regional and cultural expectations convincingly.
Marketplace Tools for Copycat Websites: Platforms like the now-seized PopeyeTools helped fraudsters create convincing fake websites for non-existent companies, used to simulate legitimate employers and provide fraudulent employment verifications.
How Employers Can Combat Fraud-as-a-Service?
Employers face a growing need to implement robust strategies to protect their organisations from the risks posed by FaaS. Here are some pratical measures to combat hiring fraud effectively:
Leverage Digital Identity Verification: Use advanced tools to verify candidates’ digital footprints by analyzing email addresses and phone numbers for authenticity. These solutions ensure the online identity aligns with the application and are available through TurboCheck.
Implement ID Document Verification: Confirm candidates’ legal identities through biometric and real-time document checks. This reduces the risk of identity theft and strengthens the hiring process. TurboCheck provides this service as well.
Conduct Thorough Reference Checks: Detect candidates who attempt to hide lies or poor performance with fabricated references. Relying on technology and data is far more reliable than gut feelings from traditional phone-based reference checks. TurboCheck offers powerful tools for this purpose.
Require Skills Assessments: Use pre-interview practical tests tailored to validate candidates’ technical and behavioral skills. This ensures their qualifications align with the job’s requirements and reduces reliance on unverified claims.
Train HR Teams to Detect Fraud in Video Interviews: Entire fake companies are created to provide fabricated job histories, complete with professional websites, offer letters, and verifiable documents.
Stolen Personal Information: Equip recruiters with clear rules to identify deception during virtual interviews. For example, require candidates to keep their video on, avoid headphones, use unchanged backgrounds, and move their camera to show their surroundings. Teach HR teams to spot candidates reading from another screen or exhibiting other suspicious behaviors.
Monitor Performance During Probation: Conduct structured evaluations in the early stages of employment to ensure new hires demonstrate the skills and competencies they claimed during the hiring process.
Conclusion
Fraud-as-a-Service is a growing challenge in the recruiting space, but employers can stay ahead of the curve with proactive measures and advanced verification tools. By implementing robust hiring practices and leveraging technologies like TurboCheck, companies can protect themselves from unqualified hires and safeguard their operations.
