Fraudulent candidates can inflict significant damage on your company. Resume fraud alone costs an estimated $600 billion annually. But that’s only one risk.
ID fraud facts:
• 5% of annual revenue is lost to ID fraud. (ACFE)
• The median loss per fraud case is $117,000. (ACFE)
• 47% of enterprises reported financial losses exceeding $300,000. (Regula)
• 40% of staffing companies reported at least one of their candidates falsified
their identities. (Bullhorn)
Resume and credential fraud facts:
• An entry-level unqualified hire costs a business 30% of their salary. (Business.com)
• 70% of applicants admit to falsifying parts of resumes. (Forbes)
• 85% of employers have uncovered lies or misrepresentations on resumes. (SHRM)
• 41% of applicants lie about their college credentials. (Zippia)
Criminal history concealment facts:
• Nearly ⅓ of American adults have a criminal record. (NELP)
• Negligent hiring lawsuits now average $1.6 million. (Claims and Litigation Management Alliance)
• 79% of employers lose negligent hiring lawsuits when they fail to uncover relevant criminal history. (FoxHire)
• 25% of negligent hiring lawsuits result in judgments of $500,000 or more. (Hub)
* “Ban the box” jurisdictions prohibit questions about criminal history in applications and during interviews. But criminal history questions are allowed after a conditional job offer has been extended.