New research indicates a significant rise in AI-driven CV fraud, particularly impacting small and medium-sized businesses. A study by Hedd reveals that 67% of large companies observed an increase in fraudulent job applications, while only 37% of small firms recognize AI's role in this issue. Qualification fraud remains a pressing concern, and while 45% of large organizations have identified discrepancies in academic backgrounds, only 20% of small firms have noticed similar issues. Many small businesses lack comprehensive verification processes, emphasizing the need for improved recruitment checks to mitigate risks associated with AI-enhanced fraud.
Chris Rea, who leads Hedd's qualification fraud service, warned that relying on physical or digital certificates alone is no longer sufficient. 'AI is changing the hiring landscape,' he said. 'It offers benefits, but it also makes it easier for dishonest applicants to create convincing fake CVs and forged qualifications.'
Over two-thirds (67%) of large companies reported a surge in fraudulent job applications, fuelled by generative AI tools that fabricate or embellish academic and work credentials.
Only 29% of small firms say they verify all qualifications, and over a quarter (26%) admit to checking none at all. By contrast, more than half (52%) of large companies conduct full verification of academic credentials.
While 45% of large organisations said they had caught candidates lying about their academic background, only 20% of small businesses reported similar discoveries, suggesting that such cases may be going unnoticed due to weak verification practices.
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