Why employers must verify candidate legitimacy, protect against fraud, and ensure a qualified, compliant workforce.
Introduction
In today’s hiring environment, employers face more risk than ever before. Candidates now apply for roles across states, industries, and skill levels — and with the rise of remote work and digital resumes, it’s easier than ever for applicants to exaggerate qualifications or misrepresent their employment history.
Research shows:
- 40%+ of job applicants lie about their work history
- 20–30% inflate job titles or responsibilities
- 15–20% falsify education credentials
- Diploma mills sell fake degrees for as little as $200
- Fraud increases significantly in remote hiring
This creates major risks for employers, including:
- Unqualified hires
- Costly turnover
- Safety concerns
- Loss of productivity
- Legal exposure
- Reputational damage
- Compliance failures
Employment and education verification is a critical part of a strong background screening strategy — ensuring that candidates are who they say they are and have the qualifications required to perform safely and effectively in their roles.
At The Screening Source, LLC, we help employers verify candidate legitimacy quickly, accurately, and in full compliance with FCRA and state regulations.
1. Why Verifying Employment History Is Essential
Employment history is one of the most commonly falsified sections of a resume. Applicants often exaggerate:
- Job titles
- Responsibilities
- Dates of employment
- Skills or accomplishments
- Salary history
- Supervisory roles
Why this matters:
A. Protecting hiring quality
Unverified claims can lead to hiring someone who simply cannot perform the job.
B. Avoiding expensive turnover
Bad hires cost between 30% and 200% of annual salary.
C. Ensuring accurate job fit
Verifying experience ensures candidates have the skills they claim.
D. Preventing credential fraud
Some applicants entirely fabricate employment to cover gaps or hide red flags.
E. Avoiding negligent hiring claims
If a candidate’s work history reveals concerns — and an employer failed to verify — they could face legal liability for workplace incidents.
Employment verification protects your organization at every stage of the hiring cycle.
2. Why Verifying Education Credentials Matters
Education misrepresentation is widespread and often harder to detect.
Common education fraud tactics:
- Claiming degrees never earned
- Using fake diploma mills
- Inflating GPAs or honors
- Listing majors or fields not completed
- Misrepresenting certification status
Risks of unverified education:
A. Hiring unqualified employees
Especially harmful in roles requiring technical knowledge, healthcare training, IT certifications, or professional licenses.
B. Regulatory violations
Some industries legally require degrees or credentials.
C. Financial and operational risk
Incorrect credentials lead to mistakes, safety issues, and lost productivity.
D. Reputational damage
If a candidate’s fraudulent education becomes public, employers face embarrassment and possible legal exposure.
E. Credentialing audits
Healthcare, financial services, government contractors, and schools face strict verification requirements.
Education verification ensures your workforce meets your standards — and your industry’s requirements.
3. Industries Where Credential Verification Is Mandatory
Some industries require verification as part of compliance, licensing, or regulatory oversight.
A. Healthcare
- Nursing
- Medical assisting
- Clinical roles
- Certified tech roles
- Administration with access to patient data
B. Finance & Banking
- SEC-regulated positions
- Mortgage professionals
- Financial advisors
- Investment brokers
C. Education
- Teachers
- Administrators
- School staff
- Volunteers
D. Government & Defense
- Contractors
- Clearance-required positions
E. IT & Cybersecurity
- Network engineers
- Cyber analysts
- Cloud administrators
F. Transportation
- License-required positions
- DOT-regulated roles
In these industries, a failure to verify credentials can result in:
- Compliance violations
- Fines
- Lawsuits
- Loss of operating licenses
- Failed audits
- Higher insurance premiums
Verification prevents compliance risks before they begin.
4. The Rise of Resume Fraud in the Digital Age
With remote work, online hiring, and AI tools, it is easier than ever for candidates to manipulate information.
Common digital fraud examples:
- AI-generated resumes
- Fake LinkedIn profiles
- Fabricated work history
- Altered college transcripts
- Fake email domains imititating employers
- Temporary phone numbers for fake “supervisors”
- Virtual diploma mills
Why this is increasing:
- Less in-person verification
- Faster hiring cycles
- More remote applicants
- Greater competition for jobs
- Ease of falsification tools
Without proper verification, employers can unknowingly hire someone with no legitimate qualifications.
5. How Employment & Education Verification Works
Verification is a straightforward but highly reliable process when performed by a certified Consumer Reporting Agency (CRA).
Employment Verification Includes:
- Job title
- Dates of employment
- Reason for leaving
- Eligibility for rehire
- Supervisor verification (when available)
- Job responsibilities
- Performance comments (when allowed)
Education Verification Includes:
- Degree earned
- Dates attended
- Institution accreditation
- Major or field of study
- Official transcripts (if required)
- Certification or license validation
Advanced Verification Tools:
- Digital credential databases
- College accreditation checks
- Employment record cross-checks
- Previous employer authentication
- Fraud detection algorithms
6. How Verification Improves Hiring Quality
Verification helps employers ensure that candidates can actually perform the job.
Benefits include:
- Higher job performance
- More reliable employees
- Better cultural fit
- Reduced turnover
- Improved team morale
- Higher long-term productivity
- Better customer service
- Faster onboarding
- Reduced training time
Verification turns hiring decisions from guesswork into data-backed certainty.
7. How Verification Reduces Legal Liability
Employers face legal exposure for negligent hiring when they fail to perform due diligence.
Verification reduces legal risk by:
- Identifying false qualifications
- Documenting proper compliance steps
- Supporting adverse action decisions
- Ensuring accurate job matching
- Meeting regulatory requirements
- Avoiding discrimination claims
- Reducing workplace safety incidents
If a candidate misrepresents credentials and causes harm, courts may hold employers responsible for failing to verify.
Verification keeps employers protected.
8. How Verification Saves Money
The cost of verification is minimal compared to the financial costs of a bad hire.
Verification prevents:
- Turnover costs
- Fraud and theft
- Workplace accidents
- Training waste
- Compliance fines
- Lawsuits
- Reputational damage
Typical Costs:
- Verification: $8–$20 per check
- Bad hire losses: $5,000–$50,000+
- Diploma mill fraud lawsuit: $100,000-$500,000+
Verification is one of the highest-ROI hiring practices available.
9. Best Practices for Employers
✔ Verify every candidate for every role
Consistency prevents discrimination claims.
✔ Use a certified Consumer Reporting Agency (CRA)
The Screening Source ensures accuracy and compliance.
✔ Follow FCRA authorization & adverse action steps
Compliance protects your business legally.
✔ Tailor verification to job duties
Higher-risk roles require deeper screening.
✔ Document everything
Verification logs protect employers from lawsuits.
✔ Use digital identity verification for remote hires
Prevents fraud during remote hiring cycles.
✔ Combine verification with continuous monitoring
Protects against post-hire risks.
Conclusion
Employment and education verification is essential for building a trustworthy, safe, and qualified workforce. It reduces fraud, improves hiring quality, strengthens compliance, and protects employers from unnecessary risk. In an era of digital hiring and resume inflation, verification isn’t optional — it’s a critical safeguard for every organization.
At The Screening Source, we help employers verify credentials quickly, accurately, and with full compliance — ensuring peace of mind with every hire.
Protect your workforce and your business with verified credentials.
📧 info@thescreeningsource.com
☎️ 860-591-5225
🌐 https://thescreeningsource.com
