Protecting trust: Combating increasing fraud with credentials and certificates
Introduction:
Increasing fraud involving credentials and certificates has become a growing problem in recent years. This article addresses the various aspects of this problem and identifies remedies.
Unveiling Misleading Resumes:
In a 2018 study by Florian Mantione, 289 company directors, 50 human resources managers, and 100 job candidates were surveyed, revealing an astonishing statistic: 65% of CVs were found to be misleading. These misrepresentations covered a wide range of deceptions, including forged diplomas, exaggerated job titles, and inaccurate employment durations. Candidates even exaggerated their foreign language skills and inflated their salaries.
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Real-Life Examples:
Many cases of credential fraud have made headlines, underscoring the gravity of the issue. Rep.-elect George Santos, a New York Republican, admitted to fabricating details about his work experience and education, including falsely claiming a degree from Baruch College and positions at Citigroup and Goldman Sachs.
In another case, a "fake" female doctor worked for months in a Zürich nursing home. She presented herself using falsified application documents and a fake doctor's diploma, claiming to have studied medicine in Italy and worked as a doctor in Naples. Her lack of knowledge of Italian and inconsistencies in her professional history raised suspicions.
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Commonplace Fraud:
Fraud in employment is widespread. According to www.acfe.com, three factors are necessary for fraud: pressure, opportunity, and the ability to rationalize illegal behaviour. These factors tend to rise during economic downturns. An ACFE study found that more than 80% of respondents believe there is more fraud during times of economic distress.
The most common resume or credential fraud involves candidates lying about their work history, educational level, and skills. Even senior-level candidates frequently embellish their resumes, distorting the information available to employers and complicating decision-making.
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Serious Implications:
Credential fraud occurs across sectors and poses significant risks. Individuals have faked licenses and degrees to secure jobs they are ill-prepared for. This not only undermines employee competence but also threatens public safety, especially in professions like aviation and healthcare.
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Verification Challenges:
Identifying fraudulent credentials is challenging for employers. Scrutinizing each resume claim is time-consuming. Alternative methods, such as inviting the best candidates to present original documents and work certificates or outsourcing the whole verification process, come with complexities.
The 2023 report by HireRight revealed startling statistics. In the EMEA region, 67% of background screenings showed discrepancies in employment assertions, and 38% displayed issues with credential assertions. This emphasizes the pressing need for a more secure and foolproof method of credential verification.
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Digital Certificates Revolution:
A promising solution gaining momentum is the use of verifiable digital certificates. Organizations seek ways to enhance efficiency, mitigate risks, and comply with data privacy regulations. These digital certificates, equipped with QR codes and Open Badges, efficiently validate academic degrees or affiliations, offering a more effective way to review and verify credentials.
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Building Trust:
Digital certificates establish trust by preventing credential and document fraud. They reduce the opportunity for fraud in the so-called Fraud Triangle. While the other two factors, pressure and rationalization, are unaffected, this measure addresses opportunity.
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Embracing the Digital Shift:
The absence of digital identities and certificates has hindered secure digital interactions. Portability, facilitated through mobile apps, enhances accessibility and usability. Companies like Procivis AG in Switzerland pioneer technology solutions for digitizing services, emphasizing the shift toward digital verification methods.
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Findings and Insights:
Credential fraud is widespread, with a 2018 study revealing a significant prevalence of misleading CVs.
Prominent cases, like that of Rep.-elect George Santos, illustrate the far-reaching consequences of credential fraud.
Industries like aviation and healthcare are also susceptible to fraudulent credentials.
Verification of credentials and certificates continues to be a challenge, so alternative methods are being sought.
Verifiable digital certificates are proving to be an effective solution for increasing trust and reducing fraud.
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References:
Jamie Carmichael (2023) Understanding Fake Degrees and Credential Fraud in Higher Ed. https://evolllution.com/programming/credentials/understanding-fake-degrees-and-credential-fraud-in-higher-ed/
Cody Gondyke (2021) How to Prevent Fraud Using Digital Credentials? https://www.accredible.com/blog/how-to-prevent-fraud-using-digital-credentials
HireRight’s (2023) Global Benchmark Report, https://www.hireright.com/resources/2023-global-benchmark-report
Occupational Fraud (2009): A Study of the Impact of an Economic Recession, Association of Certified Fraud Examiners, www.acfe.com
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