How to Protect Your Company From Candidate Fraud

By MBO Partners • June 5, 2025

7 MIN

Consultant working on a laptop.

Key points

While remote work has reshaped how we hire, it’s also led to a rise in hiring scams that exploit virtual processes.
The real cost of these scams is the lasting doubt they create in otherwise legitimate hiring efforts.
Learn how impersonation schemes are developing, what threats they pose to your hiring process, and how to strengthen your defenses.

Remote work and virtual hiring have changed recruitment forever, but unfortunately, they’ve also opened the door to new, more sophisticated impersonation schemes. From interviews using deepfake technology to fake job postings, companies now face risks they have never seen before. Employment scams cost businesses an estimated $2 billion in direct losses annually, according to HR Executive.

Candidate fraud doesn’t just waste time and money—it undermines trust in the hiring process. Let’s take a look at how impersonation tactics are evolving, what can happen when they succeed, and what you can do to protect your business.

The Current State of Candidate Fraud: Impersonators Are Getting Smarter

Impersonation in hiring takes several forms, from fake resumes to identity theft, each exploiting weaknesses in traditional verification methods. These fraudulent tactics can easily bypass basic background checks, which leaves companies vulnerable. As a result, companies face serious risks, including compliance violations, financial loss, and reputational damage.

Fake Candidates

People are now using stolen identities, AI-generated profiles, or stand-ins during interviews. In one case, a North Korean operative pretended to be an IT worker at a security firm, successfully making it through video interviews and background checks.

Job Scams

Fraudulent job postings on legitimate websites that promise high salaries to trick people into sharing personal information or paying fees.

Deepfake Interviewees

AI now makes it possible to create realistic videos and voice clones, allowing someone else—or even computer software—to do the interview.

Phishing Via Trusted Platforms

Those who engage in candidate fraud often send fake job offers or invoices from names like QuickBooks that slip past basic email security.

Impersonated Recruiters

Scammers pose as recruiters from real companies, using copied LinkedIn profiles and spoofed emails to connect with job seekers and gather personal or financial information.

The potential fallout is significant: Financial fraud, malware getting into your systems, reputation damage, and compliance violations can haunt your organization for years.

How Companies Are Fighting Back Against Candidate Fraud

Organizations are adopting a variety of methods to verify candidates and prevent fraud, combining technology and human oversight to create a more secure hiring process. Here are five key strategies they’re using:

Real-Time Identity Verification

Certain platforms use biometric authentication—think facial recognition and voice matching—alongside document validation to verify who the candidates really are. They may compare live selfies with government IDs and previous application data.

AI-Powered Fraud Detection

Smart algorithms now analyze behavior patterns and identify inconsistencies in résumés or unusual keyboard patterns during assessments. These systems need regular checking, though, to prevent bias and keep everything transparent.

Enhanced Background Checks

Third-party services dig deeper to verify employment history, certifications, and references. This is especially important in industries like healthcare and finance where credential fraud is common.

Employee Training

Teaching HR teams and candidates about warning signs—like requests for upfront payments or suspicious website addresses—helps everyone recognize phishing attempts and fake jobs before damage occurs.

Secure Talent Platforms

Companies are turning to trusted marketplaces or talent platforms that vet talent, which provides a safer hiring environment and reduces the burden on internal HR teams to catch fraud on their own.

Anti-Impersonation Service: The Next Step in Protection

As threats evolve, your hiring security must keep up. MBO Partners developed its anti-impersonation service to offer enhanced protection against impersonation and candidate fraud. With advanced tools and customized verification steps, we help companies stay secure and compliant while keeping their reputation intact.

Stronger Security: Our identity checks thoroughly vet your candidates, helping reduce fraud and prevent threats like data leaks or compliance issues.
Compliance Support: We ensure that you meet global hiring regulations, limit legal risks, and protect your company’s image and credibility.
Advanced Tools and Tech: Our automation takes over repetitive ID checks, speeding up onboarding and letting your team focus on more important work.
Customization for Your Needs: We customize each verification process to your risk level—adding steps when needed—without slowing down the experience.
Full Risk Protection: Continuous screening and AI-powered tools help catch fraud attempts early, which protects both your finances and your business reputation.

Success story: A Big 4 consulting firm facing increasing risks of contractor impersonation saw the potential of project delays, compliance concerns, and reputation damage. They turned to MBO and our anti-impersonation service, which includes real-time ID verification, facial recognition, and liveness detection during onboarding.

In just six months, we screened over 3,700 independent contractors and successfully mitigated impersonation risks. Based on these outcomes, the firm intends to broaden its use of the service.

Secure Your Workforce With MBO Partners

Candidate fraud isn’t going away anytime soon. But with the right tools and resources, you can keep your business protected. MBO’s Anti-Impersonation Service offers several benefits: