Your New Hire Might Have Fake Credentials

by TMT Editor

Jobseekers are finding themselves in something other than the easiest of a situations these days. Have you ever wondered whether or not their circumstances might compel them to fake or embellish credentials as they apply for jobs at your firm? Many indeed fib, often on a grand scale, according to PreEmploymentDirectory.com, a directory of background screening firms. The following article explains how and touches upon what you, as an employer, can do about it.

The Fake Credentials Industry is Feasting During Down Economy
W. Barry Nixon, SPHR
President of PreemploymentDirectory.com

Hank Williams’ song line, "one man's famine, is another man's feast," has proven to be true. With the economy in a down spin, diploma mills and websites providing fake credentials for references to degrees are seeing rapid growth. It is estimated that there are as many as 3,000 such firms worldwide, and more than 700 of them are in the US.

While diploma mills have been around for years, a new development has been the emergence of firms providing fake experience certificates and references. This first came to light last year from a report issued by KPMG India, which revealed the existence of 150-250 such firms; they often masquerade as information technology (IT) companies. KPMG India’s executive director Rohit Mahajan stated, “There are some kind [sic] of set-ups that issue fraudulent experience certificates. We have identified almost 150 firms that are fictitious companies.”

Added Abhay Aggarwal, chief executive of Integrity Verification Services Pvt. Ltd., “During our background verification process for clients over the past one year, we found 250 firms that fake experience letters, salary slips and relieving letters to candidates,”

Jason Morris, CEO of EmployeeScreeningIQ and past president of the NAPBS, believes this is likely not a problem unique to India. He contends that we see it there now because of the high concentration of BPO and Call Centers, but believes as other countries compete for this business we will see these fake experience providers show up elsewhere, as well. Morris added, “It also is a business that desperation breeds because ‘people have to work,’ so when there is a down turn or lack of opportunities, people get creative in finding ways to get a job. When people are desperate they will take any means necessary to support themselves and their family.”

Morris also sees this as a real risk to the professional background screening industry; it is very difficult to verify beyond a shadow of doubt that a company giving a reference is legitimate. To do that requires verification with Dept of State that the company is a legitimate business doing business in the state, has a business license, has employees, has been in business for ‘X’ number of years, etc. No background screening company, according to Morris, can afford to conduct this level of vetting on every reference provider. Obviously, the scenario opens the door for illicit firms; anybody can form a company on paper and then start giving out references.

Some of the websites we have discovered that focus on offering fake job references include alibihq.com (http://www.absolutealibis.com/Fake%20Employment%20Verification.html) and careerexcuse.com (careerhoax.com and careercheat.com point to this site). In addition, we have discovered a site that writes "fake resumes" (http://www.amazing-cover-letters.com/?hop=derekwj), where the following testimonial displays: "Now I'm working in my dream job... for which I had no experience at all..." As the site's own copy communicates, “What exactly is a fake resume? Basically, a fake resume is one in which a specific alteration of your employment history is made in order to deceive a human resources person or hiring authority in order to get hired.” They leave no doubt that the purpose and intent is to deceive.

As astounding as it is that these services exist, the good news is that businesses can significantly counter the threat posed by fake credentialing organizations by conducting thorough background checks and educational verifications. And the resources to find a firm that can do this are readily available at www.PreemploymentDirectory.com.

If your firms handles educational verifications internally, a good source to help is the Council for Higher Education Accreditation (CHEA), located in Washington, D.C. The CHEA maintain lists of accredited colleges and universities. The process of checking can save a business thousands of dollars -- e.g., when reimbursing employees for tuition costs or by avoiding costly mistakes made by someone who has bogus credentials.

Furthermore, a critical step that all businesses must take is to establish a written policy clearly specifying that only accredited schools qualify for hiring or tuition reimbursement. “Employers need to say upfront and in writing that if the job requires a college degree that the degree must be from an accredited institution.”*

*Fake Institutions and diploma mills that churn out bogus degrees could jeopardize your human resource strategy,” HR Magazine, http//moss07.shrm.org/Publications/hrmagazine/EditorialContent/Pages/0908leonard.aspx

W. Barry Nixon, SPHR, is the president of PreemploymentDirectory.com, the #1 online background screening directory, a site that helps employers find a background screening firm. He is also co-author of "Background Screening Investigations: Managing Hiring Risk from HR and Security Perspectives." For More Information, contact Barry at wbninxon@preemploymentdirectory.com or visit www.PreemploymentDirectory.com.