There had always been “fake applicants,” who created a business model out of the cost-per-application (CPA) models of job boards (employers pay for applications, whether fake or not). These fake applicants largely came from “cyber slaves” in places like Myanmar, China, and Cambodia. But what happened in the summer of ‘22? Cyber slaves were replaced by AI, resulting in some recruitment groups today seeing 30-40% of all job applications as fake for certain vacancies.
The growth of “fake” in the job market is exploding, driven by AI. It’s because there is so much movement and dynamics in the labor market. Employers and job seekers are often too trusting, hoping for a great new job or employee. There’s also a lot going on in the matchmaking between employers and employees, creating fertile ground for fraud, scamming, and even human trafficking. Over the past year, I’ve done extensive research and have encountered the following forms of “fake”, beyond just the “fake applicants (1)” I’ve already mentioned.
2. Fake recruiters
The most common form of fraud (not just in the job market) is fake recruiters. They use resumes, an ideal source for identity fraud, which are uploaded to job boards like Indeed. They often approach people via WhatsApp or Telegram for nonexistent jobs, aiming to steal money and personal identity details. Also, many recruiters even have a second or third LinkedIn profile under a different name, though LinkedIn is trying to stop this through its verification program.
3. Fake traffic/fake clicks
More than half of the internet’s traffic comes from bots, and just under half from humans. This means when you pay for traffic and clicks, you’re also paying for bots, which wasn’t the intended purpose.
4. Fake references
In the UK, companies provide fake references. When conducting a reference check, you might speak to someone who gives a false reference, perhaps exaggerating skills, qualities, or work experience. Fake references are often used for criminal infiltration, with the goal of placing someone in a position with access to sensitive information.
5. Fake diplomas
For a few euros, you can get a diploma from a prestigious institution like Harvard, and it’s even advertised. There’s now a European diploma verification system called EMREX to combat this fraud, but it remains widespread. Increasingly, employers check diplomas by watching candidates log into their educational systems to verify the legitimacy of their qualifications.
6. Fake schools
A phenomenon in places like Canada where fake schools allow students to enroll, granting them permits to stay and work in the country.
7. Nonexistent employers
In China, the problem of fake employers (companies advertising jobs that don’t exist) is so large that the job board Job51 only allows postings after physically verifying that the company exists. Fake companies, like fake recruiters, are used to scam people for money, or as mule operations (e.g., paying to apply, paying for training, identity theft).
8. Fake agencies
Nonexistent recruiters naturally lead to fake recruitment agencies. The business model is the same as for fake employers. Fake agencies are also used for human trafficking. People are enticed with work permits and tricked into leaving money and personal data behind. This is the start of fraud or human trafficking, as seen with the 500 agencies closed in Kenya this year.
9. Fake job boards
Entire job sites are temporarily set up, sometimes copying real company sites, with fake vacancies to achieve all the above-mentioned scams.
10. Fake vacancies
Much has already been written about this, such as the Resume Builder study, which claimed that 30% of job vacancies from employers are fake. Aside from carelessness and building talent pools, other reasons include keeping current staff on their toes or creating fear that everyone is replaceable.
@ceroswhaley #fyp #storytime #job #foryou #viral ♬ original sound – CerosWhaley
Why the Relationship with AI?
The fraud existed even without AI, but AI makes it enormously scalable and cheap. It’s a gigantic global problem that every employer, candidate, and agency faces, and it’s only growing. The reason it hasn’t received much attention is that employees are often temporarily in the market (only briefly encountering fraud), and other stakeholders, such as agencies, recruiters, and job boards, face core business threats. Despite these massive issues, they are largely denied or ignored by them. Acknowledging these problems means they must be addressed, potentially leading to significant revenue loss. Fake clicks and applications still generate money. I expect that the party positioning itself as a safe place for employers and candidates, nationally and internationally, could become a major game-changer.
