Fake employment reference mills, also known as ‘reference houses’, are companies that sell fraudulent job references to job seekers. These services fabricate employment history, job titles, and even contact information for fake companies/managers making it challenging for employers to determine if a reference is genuine. Where there is increased competition in the job market demanding more impressive resumés, this only fuels the temptation for fake references.
How they work and the risks
These reference mills create convincing reference responses, including websites, phone numbers and email addresses that appear legitimate. The result? Unqualified or dishonest candidates may secure positions they are not suited to or qualified for, leading to potential employee fraud, productivity losses, compliance risks or even reputational damage for the hiring company.
Why might a candidate use a fake reference service?
A candidate might use a reference mill because of:
Lack of relevant experience – they may be trying to obtain a higher paid role or position than their experience would support
Concealing past terminations – to hide previous job dismissals due to misconduct or poor performance
Masking employment gaps – to cover periods of unemployment that might raise questions.
How to mitigate risks
Partnering with an experienced background screening provider will help reduce the risk of accepting a fake reference as they are becoming harder and harder to spot.
Background screening helps reduce the risk with the following steps:
Enhanced reference verification - Identifying correct contact information through trusted sources/portals. Fake reference mills are blacklisted and identified early in the screening process.
Consistency checks - Comparing details on the candidate’s CV/HMRC records/open-source banking information with information gathered during the screening process. Any discrepancies would raise red flags.
Structured reference questions - Asking specific, detailed questions about the candidate’s role, responsibilities and reason for leaving a role to gauge the authenticity of the reference.
Key takeaways
Fake employment references pose a significant threat to businesses, making it crucial for companies to implement robust background screening processes. By enhancing verification processes through professional background screening services, organisations can effectively mitigate the risks associated with fraudulent references.
A proactive approach not only ensures the hiring of genuine talent but also safeguards the company’s reputation and overall success.
For help gathering legitimate references and all your background screening needs, get in touch with us.