Today’s biggest risk isn’t talent shortage — it’s fraud

Boardroom Signals: What Beeline’s Clients are Talking About Now 

Beeline’s Client Advisory Board (BCAB) of contingent workforce professionals represents industries as diverse as banking and financial services, energy, healthcare, high technology, retailing, pharmaceuticals, and life sciences. At meetings and teleconferences throughout the year, the BCAB delves into crucial contingent workforce topics and plays a pivotal role in shaping Beeline's future vision and direction. This blog series reflects insights from this group of Beeline’s most knowledgeable clients and partners. 

Today’s biggest risk isn’t talent shortage — it’s fraud 

By Craig Coe 

At our latest Beeline Client Advisory Board (BCAB) meeting, the conversation turned sharply toward one growing threat: candidate fraud. And surprisingly, many leaders said it’s a bigger risk to their contingent workforce programs than the ongoing talent shortage. 

Fraud isn’t new – but it’s getting more advanced, more common, and harder to catch. Whether it’s fake identities, impersonation in video interviews, or applicants using AI to pass screening tools, the game has changed. 

The rise of digital deception 

Once upon a time, candidate fraud meant stretching the truth on a resumé. Now? Its entire fraud rings posing as remote workers, creating fake identities, spoofing IP addresses, and intercepting company equipment. One North Korean operation recently extorted millions from more than 100 U.S. companies – proving that even Fortune 500 firms with strong security protocols aren’t immune. 

Common types of candidate fraud 

Among the types of fraud our clients discussed – and some have experienced – are: 

• Resumé manipulation: AI-crafted resumés, “white fonting” of keywords to beat resumé scanners, and the same resumé submitted under multiple names. 

• Bait and switch: Someone interviews, but a different person shows up for the job – or the work is secretly outsourced – locally or overseas. 

• Interview trickery: Candidates lip-sync while someone else answers questions; others use earbuds for coaching or fake digital backgrounds to hide their location. 

• Fake identities and addresses: IP spoofing and last-minute address changes used to reroute laptops or company assets. 

Why it’s a big deal 

Engaging a fraudulent candidate isn’t just a hiring mistake – it can lead to serious fallout. Think legal risks, security breaches, data leaks, and costly audits. And then there’s the financial impact of onboarding and replacing someone, lost productivity, and delayed projects. Worst case, your company’s reputation takes a hit – and that can be hard to recover from. 

What you can do 

In the past, we’ve too often trusted background checks to ensure that candidates are who they say they are, and their credentials are valid. But background checks are only as good as the provider who executes them and what you’ve asked them to validate. Often, they have been far too susceptible to human error. 

Fraud prevention needs a smarter, layered approach. Here are five strategies BCAB members say are making a difference: 

Fraud prevention isn’t just for HR or Procurement. Everyone – recruiters, hiring managers, IT, compliance – needs to know what to watch for. Run internal education sessions, share common red flags, and build awareness across the board. 

Go beyond standard background checks. Implement regular audits of both pre- and post-hire processes. Policies should mandate live interviews, credential validation, and fraud risk assessments as part of the hiring framework.  

Require multi-step verification processes, including biometric checks or live skill assessments. Organizations are increasingly performing follow-up interviews or skill verifications even after onboarding, particularly for long-term projects.  

AI-powered resumé screeners, credential verification platforms, and tools that flag impersonation can catch fraud before it costs you. These tools are particularly effective at identifying duplicate resumés and cross-referencing education or work history data. And tech can scale these protections across high-volume hiring programs.

5. Standardize onboarding

Standardized processes reduce opportunities for fraudulent candidates to exploit gaps. Avoid shortcuts or exceptions during onboarding and regularly review vendor and supplier practices to ensure compliance. 

Warning signs to watch for 

Sophisticated fraud tactics highlight the need for organizations to move beyond surface-level verification and adopt more advanced, layered approaches. Our BCAB clients are now training hiring teams to be vigilant for subtle indicators of fraud, including: 

• Resumés that look “too perfect” or overly technical 

• Candidates refusing to go on video—or using blurred or virtual backgrounds 

• Daylight outside during a late-day interview (hint: they’re not in your time zone) 

• Lip movements not syncing with answers 

• References that can’t be verified or come from the same IP address 

• Requests to be paid in cryptocurrency 
• Last-minute changes to equipment shipping addresses 

These aren’t always proof of fraud – but they should trigger a deeper look. 

Collaborate with suppliers  

Many clients agreed: staffing suppliers play a significant role in the solution. Work closely with your suppliers to make sure they’re verifying candidates thoroughly. Use scorecards or audits to assess their processes. When everyone is on the same page, it’s easier to stop fraud before it starts. 

What about the candidate experience 

 It’s fair to ask – won’t these extra steps scare off good candidates? But most people understand the need for verification, especially for remote roles. When companies explain why checks are in place, it builds trust. Legitimate candidates usually aren’t fazed – they want to work for organizations that take integrity seriously. 

Moving forward 

Candidate fraud isn’t going away – it’s evolving fast. That’s why Beeline clients are taking it seriously and updating their strategies constantly. The key is to stay proactive, keep the hiring experience positive, and use a mix of technology, process, and education to stay ahead of the bad actors. 

By working together – across teams, with tech partners, and through strong supplier relationships –companies can protect themselves, their workers, and their reputations. 

Watch our webinar with Staffing Industry Analysts 

We recently conducted a webinar with SIA on Navigating Candidate Fraud in a Digital World. Watch this webinar today. 

Check out our fraud prevention checklist  

To help you identify and prevent candidate fraud: See our fraud prevention checklist. 

Craig Coe is Beeline’s senior vice president of global customer success and executive sponsor of the Beeline Client Advisory Board.