In an age of artificial intelligence and technological advances that improve the quality of deep fake programming, companies must remain vigilant to protect their brand and assets. They also have to be wary of who is applying for open positions. The person applying and going through the interview and selection process may not be the same as the person who shows up on the job. In fact, the person applying may not be a person at all.
The Proliferation of Fake Applicants and Corresponding Dangers to Businesses
Generative AI tools that can create fake resumes, images, and voices are leading a surge in fraudulent job applicants, particularly for remote positions. Recent news stories have focused on companies hiring contract workers operating in North Korea, but the problem is more widespread than state hackers. A leading research firm predicts that over the next three years 25% of job candidates globally could be fake.
The motives are varied. Sometimes it is a talented individual impersonating the real applicant to help the applicant pass pre-employment assessments or impress during interviews. Other times an individual will utilize AI to respond to questions that the individual would not otherwise be qualified to answer. Unfortunately, but not surprisingly, there are also malicious actors looking to get access to company networks, install malware, steal proprietary information, or engage in other misconduct.
Another area of concern for businesses is compliance with child labor laws. With the growth of sophisticated generative AI, applicants are supplying paperwork that can pass muster under the E-Verify process both as to age and eligibility for employment in the United States. Both under the Biden and Trump administrations the government has taken a very aggressive enforcement stance seeking to hold employers strictly liable for violations, even if the company complied in good faith with the E-Verify process.
Best Practices to Detect and Deter Fake Applicants
Companies can employ a variety of potential strategies to detect and deter improper or malicious activity. There has been a growth of companies selling AI or other services designed to counter and combat fraudulent applicants as the technological arms race in this area continues. Before selecting a service, a company should be aware of the potential exposure that utilizing third-party services can have in this area. Each hiring process is unique, and counsel at Bradley can advise your company on specific steps to incorporate into the screening and hiring process to maximize effectiveness.
Here are a few best practices to consider:
- Train recruiters and hiring agents. Companies should ensure that their recruiters and hiring agents are aware of the risks and take appropriate steps to minimize fraud. One security firm thwarted an AI deepfake by asking the individual to wave his hand in front of his face, which the bot was unable to do. Make sure candidates are on camera and disable their video filters. Consider asking the applicant to use screen sharing to show a relevant document.
- Consider more in-person interactions. While it may not be economically feasible for a company to conduct all interviews onsite, increasing in-person interactions before a final hiring decision can help uncover fraud. There may be value in having the applicant deliver certain documents in person rather than by email.
- Coordinate with IT. IT personnel can assist during and after the hiring process to mitigate fraud. Questionable remote workers may look to have equipment sent to locations other than their stated address (even outside the country). IT or other personnel could assist in cross referencing resume details with other sites (LinkedIn, etc.) or resources.
- Utilize detection tools. A variety of companies now offer tools and systems to detect fraud, such as facial recognition and other systems that verify identities. Indeed, some companies tout the use of AI technologies to detect an applicant’s use of AI technologies. As outlined in the next section, though, companies need to be careful before they utilize such products.
Complications for Businesses That Attempt to Address the Issue
As the technology evolves, more and more companies are offering services to detect fake job applicants. Before a company begins utilizing such services it is important that the company consider the potential areas of exposure. First, any type of system used to screen applicants could have a disparate impact on certain legally protected groups. If the screening tool has not been properly validated, its use could violate state or federal employment laws. Companies should conduct proper due diligence on the vendors selling the product to understand how the product was developed, whether there may be a disparate impact, and whether proper validation data supports the use of the product for the jobs in question. Knowing that a company can be held liable for the discriminatory impact of its vendors’ services, companies should ensure that their contracts with vendors contain sufficient insurance and indemnification provisions and other requirements.
Specific types of technologies can also have unique risks. Facial recognition technology may be effective to ensure the worker hired is the same person as the worker interviewed, but many states and localities have laws governing, and potentially prohibiting, the use of such technologies. And the remote location of applicants could impact which laws apply.
Finally, while there may be differences between the use of such detection systems and a regular background check, the law in this area is not fully developed with respect to these new technologies. If a process is considered a background check, then the Fair Credit Reporting Act (FCRA) may impose special requirements before it can be used, including specific disclosures to applicants, written authorization, and other certification procedures.
Your applicants may be fake, but the potential damages to your organization are quite real. If your company is concerned about the proliferation of deepfakes and applicant abuse or is considering changes to its screening or hiring process, you should investigate options to minimize costs and exposure.