Mediawire
New Delhi [India], May 14: "We live in a society absolutely dependent on science and technology and yet have cleverly arranged things so that almost no one understands science and technology. That's a clear prescription for disaster." ~ Carl Sagan, an American astronomer, planetary scientist, astrophysicist &, author.
In the realm of recruitment in India, the poignant words of Carl Sagan echo highlighting a stark reality. A dependence on science and technology, yet a lack of understanding or utilization that could avert disaster. The recruitment sector, marred by fraudulent practices, relies heavily on human judgment and basic checks. Exposing both companies and candidates to significant risks.
Recruitment fraud can happen to companies as well as candidates.
The Ugly Math of Recruitment Fraud
Recruitment fraud unveils a concerning economic equation. Consider an IT firm billing at $20/hour for a fresher or intermediate employee. If a fraudulent hire is discovered 30-60 days into employment, the economic loss is substantial. The minimum loss, factoring in unproductive hours and additional recruitment costs, stands at $27,000 per employee, equivalent to around INR 20 lakhs.
For onsite hires with an $80/hour cost, the economic dent skyrockets, reaching a staggering 80 lakhs rupees per fraudulent hire. With an estimated 5% of dishonest candidates slipping through the hiring process in companies hiring 500-1000 people monthly, the economic repercussions can amount to INR 5-10 crores per month.
Beyond the economic fallout, a company's reputation suffers due to the perceived lack of robust systems to thwart fraudulent hires. Clients may hesitate to engage with a company vulnerable to data breaches and compromised confidentiality.
Job Scams Leave People High and Dry
Recruitment fraud not only affects companies but also dupes unsuspecting candidates.
Scamming agencies impersonate themselves as people from the talent acquisition team of a company (they even create fake LinkedIn profiles & email addresses). The naive candidates are even sent offer letters & a company onboarding kit. Undoubtedly, the ease of use of technology has enabled scammers to get creative and affect more people.
All this is done in exchange for personal information or money.
When the candidates come to the actual company, they thought they were being hired to, they find out they have been scammed. It creates an uncomfortable situation for everyone, loss of trust in the system, mental stress for candidates, and unexpected problems in the middle of a busy day for businesses.
Current State of Recruitment Solutions
Conventional hiring practices fall short in detecting fraudulent candidates. While advice circulates about scrutinizing candidates through social media and trusting intuition, these measures are akin to using a wet match in a dark cave. Human capacity limits fraud detection, allowing candidates to manipulate resumes and credentials.
Remote hiring exacerbates the issue, with candidates resorting to impersonation using video morphing and audio proxy tools. When it comes to re-hires, did you know that only 15% of tools available online do re-hire checks? That too only with basics -- first name, last name.
Moving Beyond Advisories: A Technological Approach
There was a recent case of a man dressed as his girlfriend to write an exam for her. Not long before, Nidhi Razdan, a reputed Indian journalist and television personality was scammed into thinking that she was getting a job at Harvard University. She even got an email from an official Harvard email ID with an offer letter and agreement.
All that companies do to tackle such situations is issue advisory, do 1-2 social media posts, and "hope" that people will read these. They think this is the best they can do.
But there has to be a better way to handle this by using technology, which RippleHire is exploring.
Building a Robust Defense
To effectively combat fraud, two pivotal changes are imperative: starting the review process from resume scrutiny through onboarding and leveraging technology to ensure airtight security at each stage.
RippleHire's AI-based fraud detection system stands as a beacon in this endeavor, employing database searches to flag fake details, introducing additional interview steps for validation, conducting thorough re-hire checks, identifying blacklisted candidates, and fortifying visual offer experiences to thwart scammer agencies.
A Call to Action
As organizations grapple with the escalating challenges of recruitment fraud, the time for transformative action is now. To safeguard time, money, and organizational integrity, adopting advanced tech-driven solutions like RippleHire becomes imperative. In an era where the confluence of technology and human judgment is paramount, companies must take the lead in fortifying their recruitment processes against the rising tide of fraud.
RippleHire, founded by Sudarsan Ravi, exists to make recruiting effortless, human and delightful. Since 2012, we have served over 1 Mn+ users across 45+ countries with our gamified referral and talent acquisition cloud platform. Our intelligent end-to-end ATS helps you to efficiently hire the right talent, enabling you to deliver best in class experience to both - recruiters as well as candidates. It is deep in thought, simple to use and powerful to govern
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