Deceptive applicants exploit hiring processes to gain access to organizations, putting financial, operational, and security stability at risk. After gaining access, these individuals exploit internal privileges, increasing the risk of cyberattacks and data breaches that would be challenging for external attackers to execute. In some cases, they may operate undetected for extended periods, exfiltrating sensitive data, compromising internal systems, and undermining business integrity before being identified.
Organizations lose 5% of revenue to fraud each year according to findings from the ACFE’s 2024 Report to the Nations. Additionally, organizations may face regulatory scrutiny for failing to prevent employment fraud. Failure to implement robust vetting processes can result in legal challenges, regulatory penalties, and lawsuits from impacted stakeholders, compounding the financial and reputational damage caused by fraudulent hires. These risks reinforce the need for enterprises to adopt proactive fraud detection and prevention strategies to safeguard operations, reputation, and compliance standing.
Fraudulent candidates and hires use tactics like:
- Fake credentials: falsified resumes, certifications, or employment histories.
- Fake identities: falsified or stolen identities to bypass verification.
- Deepfake images: altered images and manipulated video calls to reinforce fake identities.
- Manipulated online presence: fake online profiles and portfolios to lend credibility to their fake identities.
- Proxy hiring schemes: the use of third-party services, fake staffing agencies, or remote interview proxies to misrepresent qualifications.
Nisos research continues to reveal evolving fraud tactics that deceptive applicants use to infiltrate organizations, emphasizing the need for robust fraud prevention strategies. Intelligence-driven insights have shown how fraudulent actors manipulate digital platforms and falsify credentials to bypass standard verification processes. Recent examples include GitHub backstopping, where fraudulent applicants populate repositories with fake work histories, and online profile manipulation, where individuals build deceptive professional profiles to secure remote contracts under false identities.
