Hiring Fraud in 2026: Insights from the Better Hiring Institute

Hiring fraud is no longer a fringe risk. It has become a fast-evolving, multi-layered threat impacting every stage of the recruitment lifecycle — from attraction to onboarding and beyond. For APSCo members, operating at the sharp end of professional recruitment, understanding these risks (and acting on them) is critical to protecting clients, candidates, and your own brand.

Drawing on insights from the Better Hiring Institute’s Hiring Fraud Guide 2.0, as presented by Keith Rosser at the APSCo Legal & Compliance Forum last week, here’s where the biggest risks are right now — and what you can do about it.

The Scale of the Problem Is Accelerating

The data is stark:

• A 237% rise in job scams was reported by Lloyds Banking Group in 2023
• Over 21,700 false applications were recorded in 2024, up 10% year-on-year
• By 2025, 33% of insider threat cases involved unsuccessful fraudulent applications

Hiring fraud is now firmly on the radar of the Home Office and National Crime Agency, reflecting how it intersects with wider risks including organised crime, cyber threats, and modern slavery.

Why Recruitment Firms Are a Prime Target

APSCo members sit in a unique position of trust — acting as gatekeepers between candidates and employers. That makes recruitment firms an attractive entry point for fraudsters seeking:

• Access to sensitive client systems or data
• High-value roles with minimal scrutiny
• Opportunities to exploit supply chain complexity
• Faster placement cycles where vetting may be rushed
  
  

The implication is clear: fraud prevention is no longer just an employer responsibility — it’s a core recruitment competency.

The Top 10 Most Common Types of Hiring Fraud

1. Reference Fraud (“Reference Houses”)

Professionalised services now sell fake employment references, complete with convincing contact details.

Risk: Candidates can fabricate entire job histories and pass basic checks.
Impact: Financial loss, insider fraud, and reputational damage.

Prevention focus:

• Independently verify referees and organisations
• Use trusted datasets (HMRC, payroll, open banking)
• Flag inconsistencies in contact details or timelines
  
  

2. Qualification Fraud

From fake certificates to entirely fabricated degrees, qualification fraud continues to grow.

High-profile example: A fake NHS doctor practised for over 20 years using forged credentials.

Prevention focus:

• Verify directly with awarding bodies
• Use specialist screening tools
• Train recruiters to spot document inconsistencies
  

3. Fake Documents and Identity Fraud

AI has lowered the barrier to creating highly convincing fake IDs, licences, and certifications.

Risk areas: Construction, healthcare, logistics, and regulated professions

Prevention focus:

• Check for digital manipulation (formatting, metadata, pixel inconsistencies)
• Use AI-enabled document verification tools
• Partner with fraud prevention services
  

4. CV-Based Fraud

Still one of the most common and overlooked risks.

Typical tactics:

• Inflated job titles
• Fake roles or employment dates
• Hidden gaps or adverse history
  

Prevention focus:

• Probe vague or inconsistent CVs
• Cross-check employment history using independent data
• Request evidence for key claims

5. Recruitment Scams (Targeting Candidates)

Fraudsters are impersonating your brand to exploit jobseekers.

Common tactics:

• Fake job ads on social media
• Requests for upfront payments
• WhatsApp or LinkedIn outreach

Prevention focus:

• Publish clear communication policies
• Monitor brand misuse online
• Guide candidates on how to spot scams

6. AI-Driven Deception

AI is transforming hiring fraud — fast.

Emerging threats:

• AI-generated CVs and interview answers
• Real-time AI assistance during interviews
• Deepfakes and synthetic candidates

Prevention focus:

• Use competency-based interviewing
• Introduce face-to-face or video verification
• Deploy AI detection tools where appropriate

7. Dual Employment

An increasing trend, particularly in remote roles.

Risks:

• Conflicts of interest
• Reduced productivity
• Data leakage

Prevention focus:

• Clear contractual clauses
• Ongoing screening (not just pre-hire)
• Monitoring anomalies in performance or availability

8. Immigration and Right-to-Work Fraud

With rising enforcement activity, compliance risk is growing.

Prevention focus:

• Use certified Identity Service Providers (IDSPs)
• Follow Home Office guidance rigorously
• Train staff to identify fake documents
  

9. Supply Chain Risks

Complex recruitment supply chains can hide weak compliance.

Key issues:

• Worker impersonation
• Non-compliant umbrella companies
• Inconsistent vetting standards

Prevention focus:

• Work with accredited partners (APSCo)
• Align vetting standards across all suppliers
• Conduct ongoing due diligence

10. Fake IT Workers and Geopolitical Risk

A growing and sophisticated threat.

Example: Overseas actors posing as remote IT workers to gain access to systems and data.

Prevention focus:

• Strengthen identity verification
• Monitor IP and access behaviour
• Apply strong cyber security controls

What This Means for APSCo Members

The key takeaway is simple: Hiring fraud is no longer a compliance issue — it’s a strategic business risk.

For APSCo members, this creates both risk and opportunity.

The Risks

• Reputational damage if fraud passes through your process
• Legal and regulatory exposure
• Loss of client trust

The Opportunity

• Differentiating through trusted, secure hiring practices
• Positioning as strategic partners in risk management
• Building stronger, longer-term client relationships
  

Practical Steps

To stay ahead, APSCo members should:

1. Strengthen Screening

• Invest in layered verification (identity, employment, qualifications)
• Use technology to augment manual checks

2. Upskill Recruiters

• Train teams to spot fraud indicators
• Build awareness of AI-driven risks

3. Standardise Across Supply Chains

• Ensure consistent vetting standards
• Audit partners regularly
  

4. Leverage Industry Collaboration

• Engage with APSCo, Cifas, and the Better Hiring Institute
• Share intelligence and emerging threats
  

Final Thoughts and What’s Next

Fraudsters are innovating — quickly. But so is the recruitment industry.

By combining technology, collaboration, and professional standards, APSCo members are uniquely positioned to lead the response — raising the bar for safe, compliant, and trustworthy hiring across the UK. The question is no longer if hiring fraud will impact your business — but how prepared you are when it does.

This week also marks the Parliamentary launch of the Better Hirer Scheme, where a new self-assessment model will be unveiled, designed to recognise and promote fair, responsible and effective hiring practices.

Acknowledgements to the Better Hiring Institute.

APSCo members can also find relevant resources and guidance here.