BUSINESS INSIGHTS | WINTER 2009/2010 EFFECT

Resume Fraud on the Rise: Learn to Detect It

by Jay Sjostrom 

This challenging job market can tempt desperate applicants at all levels of employment to submit exaggerated or fraudulent resumes in hopes of landing a job. Diploma mills are big business. Software is available to self-create “official” transcripts. For a fee, online businesses provide fictional telephone references. There are countless ways applicants can stretch the truth.

Recent, well-publicized accounts of resume fraud have resulted in early executive-level dismissals. A CEO of a Fortune 500 company falsely claimed a business degree. A Division I head football coach falsely claimed a business degree and embellished his playing record. And a state court appellate judge committed fraud by claiming trial lawyer experience.

While most prospective candidates are honest, some applicants may fictionalize their background to fit the profile sought. A 2004 survey by the Society for Human Resource Management found that 61 percent of polled human resources professionals had discovered inaccuracies in resumes “often” or “sometimes” after carrying out background checks. And the market is a great deal more competitive now.

Find the story behind the resume

With the responsibility to deliver qualified candidates in a timely manner, recruiters and human resources professionals strive to listen for and identify inaccuracies in the candidate’s resume and background at the earliest stages of the hiring process. Probing and thoughtful questions are effective tools when sorting out fact from fiction.

For starters, compare a prospective candidate’s resume with what can be found in a simple search on Google or social networking sites, such as LinkedIn. Obviously, a discrepancy between a candidate’s self-created social networking profile and resume information should raise red flags and justifies a deeper inquiry.

Employment history

Resumes are delivered in formats that allow greater latitude for fiction. So-called “functional resumes” can mask job hopping and employment gaps, and allow prospective candidates to more closely comport past duties with the posted qualifications of the vacant position, rather than report actual duties.

Applicants may stretch dates of past employment or invent work to cover gaps or past jobs they wish to hide. Self-employment claims and consulting roles should be scrutinized—ask about income, client names, hours worked, project goals, and results. Consider verifying extended self-employment income.

While effective interview environments are collegial and non-adversarial, employers considering a key hire must dig for information not found on the face of the resume to reveal inconsistencies and false information. Inquire about one or two specific career accomplishments the prospective employee deems most significant. Drill down on these accomplishments with questions requiring specific and detailed answers (e.g., actual duties performed, project team size, team dynamics and specific management issues, resource and budget challenges, and successes and failures). Soft answers on any detail need additional scrutiny.

Salary

Claims of past compensation outside a reasonable range for the current position may suggest embellishment. When discussing a past salary with a prospective candidate, be sure to distinguish what is salary versus bonus, benefits, etc. Verify compensation claimed through tax forms (e.g., IRS Forms 1040, 1099, and W-2).

Education

Require the applicant to provide written authorization permitting his or her schools to release transcripts directly to you. Also consider verification agencies, which can quickly confirm schools attended, degrees obtained, GPA, and years of attendance.

Volunteer and nonprofit activities

Volunteer experience may provide an avenue to fabricate missing experience. Question the candidate’s understanding of the organization’s mission and history, reasons for involvement, and again, discuss details surrounding significant accomplishments. Request references from these experiences as well.

References and background checks

Require references of former supervisors, peers, and direct reports who can speak first hand of the applicant’s work history. Desperate applicants may believe that incorrect reference contact information will discourage the employer from connecting with the reference. If contact information is inaccurate or references are otherwise unreachable, don’t let this slide—insist on obtaining correct information.

Don’t accept an applicant’s prepared reference letters at face value. Contact the reference provider directly to verify the letter’s content.

As the hiring process continues, concerns regarding the veracity of initial resume information may fade or take a backseat to cultural fit and the candidate’s potential to make an impact. However, without exception, background checks that include state/federal criminal and civil court records, education, driver’s license records, and in some cases, credit reports must be required of all serious contenders. Before extending an employment offer, you should be confident in the results of these reference and background checks.

Everybody loses when an employment opportunity is given to a fraudulent applicant. Hiring an unethical and unqualified employee can expose the employer to embarrassment, work place disruption, and litigation, and undermines the playing field upon which applicants compete.