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HireRight Report: AI Deepens Hiring Fraud Risks as Identity Checks Lag

2025 Global Benchmark Report finds one in six firms hit by hiring identity fraud; candidate discrepancies remain widespread worldwide.

If you think identity fraud in hiring is a distant risk, think again. According to HireRight’s new 2025 Global Benchmark Report, one in six businesses worldwide has already experienced identity fraud during recruitment—and nearly a third of HR leaders aren’t even sure if it’s happened to them.

That uncertainty is alarming enough. But paired with the rise of generative AI tools, which make it easier to fabricate résumés, tweak ID documents, or produce flawless-yet-fake credentials, the cracks in global hiring systems are starting to look like gaping holes.

Identity Checks: Far From Universal

Despite the risks, only 60% of companies surveyed said they conduct identity verification as part of their pre-employment screening. Most of those that do rely on third-party screening providers. But in a surprising twist, one in six firms still run identity checks in-house—sometimes with nothing more than a one-time staff training.

Regionally, North American businesses are the most likely to take the DIY approach. In contrast, employers in EMEA and APAC tend to outsource verification and provide staff with periodic refresher training.

Candidate Discrepancies: A Persistent Problem

Even beyond fraud, candidate discrepancies remain rampant. More than three-quarters of employers reported discovering inaccuracies in the past 12 months. Roughly two in five say they uncover at least one discrepancy in every 20 candidates screened, and 13% reported finding red flags in one of every five.

Where are most of these skeletons hiding? Employment histories and education credentials top the list:

  • Employment verifications: the biggest hotspot, especially in APAC (72%) and EMEA (64%).

  • Education discrepancies: nearly half of EMEA employers (47%) flagged issues, higher than North America or APAC.

  • Criminal records: 36–40% of employers reported inconsistencies.

  • Drug testing: close to 40% reported positive results.

Big Companies, Bigger Problems

Enterprises (5,000+ employees) are far more likely than SMBs to uncover discrepancies. Just 7% of enterprise respondents reported a clean slate last year—compared with 41% of small and mid-sized businesses. The implication: larger firms either attract more misrepresentation or simply have more rigorous systems to spot it.

Why It Matters

Euan Menzies, HireRight’s CEO, summed up the stakes bluntly: “Employers that fail to strengthen their identity verification processes or overlook recurring discrepancy patterns could face costly consequences, from compliance failures to reputational harm.”

And he’s not wrong. With AI supercharging fraud tactics, the hiring process has never been more vulnerable. Companies that continue to treat identity verification as optional may soon discover the price of complacency—measured not just in dollars, but in brand trust and regulatory risk.

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