By Jaibir Nihal Singh, Founder, TraqCheck.
The war for talent is real, with firms shelling out an average of $4,000 to fill a single position in just 24 days, as per a study by Deloitte. In India, the average ranges from about Rs. 50,000 to Rs. 2,00,000. However, some applicants are using a strategy that undermines the entire system, fake resumes, in a desperate attempt to stand out. Research illustrates that at least one in six candidates completely falsify their experience or exaggerate their qualifications. False credentials and exaggerated experiences may have a disastrous effect on a business’s finances, reputation, and productivity. The seriousness of the problem is shown by the U.S. Department of Labor’s estimate that the cost of a bad hire can reach at least 30% of the employee’s first-year earnings. However, contemporary technologies such as AI appear as a ray of hope, promising to improve recruiting processes in accuracy, efficiency, and dependability.
There are different ways through which AI is transforming the entire hiring process and eliminating fraud. But to begin with, we must comprehend the many forms that candidate fraud manifests. It may take place in multiple ways, such as plain lying on resumes, falsifying credentials, or even identity theft.
These may consist of intentional misrepresentations or omissions, such as when an applicant doesn’t disclose his/her history of being involved in a crime. Because of this, companies may suffer significant financial losses, sharp declines in production, or even legal problems as a result.
In this case, artificial intelligence can help. Artificial intelligence is very useful in analysing comprehensive and suspicious data that indicates possible fraud. These systems quickly scan multiple applications and detect differences. For example, to verify eligibility and employment, AI can analyse candidate data against databases and identify gaps that recruiters cannot.
According to research, advanced AI algorithms may even identify irregularities in the way a candidate uses language, such as discrepancies in skill levels or possible plagiarism in application papers, with an accuracy rate of 80%.
AI is also capable of probing applicant behaviour throughout the recruiting process. Through the utilisation of facial recognition technology, machine learning algorithms can evaluate interview responses and communication styles. These systems can identify subtle facial expressions to identify indicators of deceit or uneasiness. Additionally, voice analysis can be used to spot odd shifts in speech patterns and tonality, providing important details about a candidate’s authenticity.
Verification of documents is another area where AI excels. AI systems are capable of carefully reviewing and verifying papers such as certificates, passports, and proof of address. To find forgeries, these systems search for linguistic patterns and minute details at the pixel level. This guarantees that during the employment procedure, only original papers are taken into account.
AI has the ability to learn from historical data and this is the exact reason why it works as a potent tool for anticipating and stopping fraud before it even occurs. Based on patterns witnessed in previous fraud instances, predictive analytics can identify applicants who pose a high risk of fraud.
What makes AI even more invaluable is that it is faster and gives more precise results than human recruiters at identifying discrepancies. This allows recruiting managers to devote more time to quality prospects, perhaps resulting in a shorter recruiting period, which can have a big financial impact on the business.
Firms can also save a considerable amount of funds with AI. It can reduce the sum of money that’s spent on preparing an unfit employee, possible legal issues and lost productivity by avoiding fraudulent recruits. As previously mentioned, ignoring an important piece of fraud-related evidence during the hiring process can lead to significant financial damages, resulting in a potential loss of millions of dollars.
Finally and above all, utilising AI to stop fraud can contribute to increasing consumer confidence. A robust recruitment process is considered a clear indication that the company is committed to honesty and safety. This enhances the position of the company in the market while encouraging enduring customer trust at a time when fraud and data breaches are very common.
However, it is essential to note that ethical and legal considerations have to be given more thought when using AI in recruitment. The use of AI must ensure equality and diversity so that no biases may favour one candidate over others. To guarantee accuracy and efficacy, human resources must be included in the recruiting process at the end.
All things considered, AI is changing the way businesses combat employee fraud throughout the hiring process. AI uses behavioural theories and advanced data analysis techniques to increase hiring success, accuracy, and efficiency. As this technology evolves, it will become increasingly crucial for businesses to address fraud and ensure the security of the entire hiring process.