Can we protect businesses against cv froud with blockchain?
Amid the fierce aftershocks of the COVID 19 pandemic, the current job market is more competitive than ever. Many people have lost their jobs as government programs are expanded and the unemployment rate continues to rise. This trend not only results in more job seekers applying for fewer jobs, but also increases the temptation for candidates to tweak their experience and qualifications to land that dream job and ensure their name is at the top of the pile.
It is important to make it clear from the outset that the threat of CV fraud is not a new phenomenon created by the pandemic – it is an ongoing problem that has threatened the corporate sector for years. Background checks and pre-employment screening are an integral part of the hiring process to weed out fraudulent applications, but the quality of professional checks has changed in the past. However, with the advent of new technologies like blockchain that use high-value verification processes to ensure bulletproof hiring practices, it will likely become more mainstream.
A 2018 investigation by the BBC’s Files on Four found that more than 3,000 fake qualifications were sold by a single company to buyers in the UK in 2013 and 2014, including doctors and nurses. In addition, a 2017 study by YouGov found that one in ten Britons lie on their CVs and four in ten CVs contain embellished details of education and skills. Even if fraudulent applications are successful, they can have a negative impact on less qualified applicants by causing them to miss out on offers.
The costly impact of CV fraud on businesses is even greater. High staff turnover, business disruption, and reputational damage are just some of the consequences companies suffer from hiring fraudulent applicants.
We’re all familiar with the screening and pre-employment review phases of the hiring process, which are designed to address these concerns while not damaging the company’s reputation. In some industries, such as healthcare, professional information verification is a mandatory part of the hiring process.
In the past, a lack of consistency and quality in the verification process has left companies vulnerable and open to the effects of CV fraud. However, technological developments in recent years have meant that a company can equip itself with the right tools to strengthen its hiring process. Blockchain technology, in particular, has emerged as an important piece of the puzzle to help companies build competent, verified teams equipped with the skills and experience to meet the highest standards.
Blockchain is defined as a shared and distributed database of records and transactions. Transactions are added to blocks that are stored in a decentralized chain. This means that there is no central party controlling the content of blockchains and there can be no tampering with records as all members agree on their validity and verify the history of their modification. Once stored on the blockchain, validity and verification can be checked in real time. For example, a verification issue can be uploaded to the blockchain and authenticated, and its validity can be determined in seconds.
We understand the temptation to speed up the recruitment process and bypass these steps to avoid the rush of applications. However, hiring companies and recruiters should consider the costly damage CV fraud can do if their due diligence is not taken seriously. By using quality verification supported by cutting-edge technology, companies can easily build a competent verified team, save time and resources, and reduce the risk of complex testing over time.
Companies today have a variety of technologies at their disposal to make internal processes more efficient, secure, and trustworthy. On the one hand, blockchain can be used in conjunction with quality checks to not only ensure that companies are protected from the likely rise of CV fraud, but also to give qualified applicants a level playing field in the job market.
The risk goes beyond identity theft. For example, individuals may pretend to have a job with an employer in order to break into a company’s data system. Or they may set up a website to target a company’s sensitive data stored on its servers. The implications of CV fraud are many.
Blockchain’s capabilities for businesses are not limited to security. The benefits of Blockchain are obvious for those involved in recruitment processes and other high-risk sectors. Retention of personal data is one of the key areas where Blockchain can be improved. Blockchain has become a fundamental part of the digital and financial revolution, and the idea of transparency, both from a government and people’s perspective, has played an important role in the development of the technology. The advantage of Blockchain is the level of tracking and traceability it allows, which not only helps eliminate the problem of CV fraud, but also prevents false positives from creeping in.
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