How to prevent qualification fraud in hiring?

Many candidates today use fake degrees, altered certificates, or inflated achievements to pass initial screening.

In fact, a Forbes survey found that a majority of job seekers lie about their qualifications on cover letters, resumes, and in job interviews. For employers, that lie can lead to bad hires, financial losses, or even legal trouble.

Qualification fraud is a real problem that requires rigorous checks, genuine skill tests, and enhanced verification at every step. In this guide, we’ll show you how to identify it early and keep your hiring process fraud-free.

Key takaways

What is qualification fraud in hiring?

Qualification fraud refers to the act of falsifying or misrepresenting academic or professional credentials to secure a job or position.

It could be a fake degree from a diploma mill, a forged certificate, or a genuine document that has been altered to show higher grades or different dates. Some even claim they graduated from schools they never attended.

For recruiters, this type of fraud is particularly challenging because fake documents can appear genuine and be supported by convincing stories. It often goes unnoticed during busy hiring rounds. 

This problem isn’t limited to one region or role. In 2024, the Higher Education Degree Datacheck (HEDD) in the UK reported over 200 bogus universities selling fake degrees.

Similarly, the South African Qualifications Authority (SAQA) discovered thousands of fraudulent certificates during its verification process.

Even professional industries like healthcare, construction, and IT have reported cases of unqualified workers using false credentials.

In simple terms, qualification fraud in hiring refers to a candidate presenting false or manipulated qualifications to appear more competent than they actually are. Without proper verification, these cases often go unnoticed until the damage is done.

Why is qualification fraud a serious risk for employers? 

When someone hides behind fake degrees or certificates, it affects far more than one wrong hire. 

The Association of Certified Fraud Examiners (ACFE, 2024) reports that companies lose approximately 5% of their annual revenue to occupational fraud, and falsified credentials are a growing component of this problem. 

Qualification fraud can result in financial losses, safety risks, compliance issues, and long-term damage to a company’s reputation. Let’s understand how.

1. Financial losses

Every bad hire costs money (from training, onboarding, and productivity loss to rehiring). According to SHRM (2023), replacing one wrong employee can cost around 60% of their annual salary.

Suppose that person was hired based on fake qualifications. In that case, the loss is even greater because their poor work quality often affects others as well. For example, a finance manager who isn’t truly certified can make costly reporting errors or cause failed audits.

2. Legal and compliance problems

Hiring unqualified individuals can easily cross legal boundaries, especially in regulated industries such as healthcare, education, or finance. A nurse with a fake certificate could put patients at risk. A teacher with a forged degree could cause accreditation problems for a school. 

Under GDPR and FERPA, employers are required to handle personal and academic data carefully, but hiring someone under false records may also lead to penalties and lawsuits if the fraud is discovered later.

3. Damage to company reputation

Trust takes years to build and can be lost in minutes. When a case of fake qualifications becomes public, it raises questions about the entire hiring process. Clients start doubting your credibility, and honest employees lose trust in management.  

4. Operational and safety risks

In some jobs, fake qualifications can create real dangers. Think of an engineer who forged credentials working on a building project, or an IT admin with no real certifications managing sensitive data. These are safety and security risks that can lead to accidents or data breaches.

5. Team and cultural impact

When someone who has lied about their background joins a team, it affects the morale of the entire team. Genuine employees feel cheated, and good candidates may lose faith in the fairness of the system. 

Over time, this damages the culture of accountability and honesty that keeps an organization strong.

Type of Risk	What It Means	Impact on Employers
Financial Loss	Bad hires result in wasted salaries, additional training costs, and the need for rehiring.	Hiring someone with fake qualifications can drain budgets and hinder team productivity.
Legal & Compliance Issues	Breaking industry laws or hiring without proper licenses.	Can result in legal penalties, data breaches, or failed audits.
Reputational Damage	Losing trust among clients, partners, and employees.	Once a fake qualification case becomes public, it questions the company’s entire hiring process.
Operational & Safety Risks	Unqualified people cause errors or unsafe conditions.	Can lead to system failures, security risks, or safety incidents.
Team & Cultural Impact	Dishonest hires lower morale and trust within teams.	Genuine employees lose motivation and confidence in management decisions.

How can employers detect and prevent fake credentials during hiring?

Fake qualifications often slip through because hiring teams trust documents too quickly. Detecting them isn’t complicated. It takes more care and a few habits built into the hiring process. Here’s how to do it right.

1. Don’t trust documents alone

A certificate or degree on paper isn’t always proof. Anyone can buy a fake copy online for a small fee. 

Always confirm the qualification with the university or training institute directly. Most have an email or online system where you can check whether the certificate is genuine.

2. Look out for suspicious details

Fraudulent certificates often have subtle differences that don’t match genuine ones. Watch for spelling mistakes, mismatched fonts, missing watermarks, or wrong logos. 

Even the language used in fake certificates can sound odd. If something feels off, take it as a reason to double-check.

3. Use reliable verification services

If manual checking takes too long, consider using an official verification service. In the UK, HEDD verifies university degrees. In South Africa, SAQA performs the same function. 

There are also global tools, such as Qualification Check, that verify education records across countries. These platforms make the process fast and safe.

4. Add a small skill test

A simple test says more than any certificate. Ask the candidate to perform a short task related to the job. For example, if someone claims to know Excel, ask them to organize or analyze sample data. If they can’t do it, you’ll see that the paper qualification means nothing.

To make this easier, Testlify offers 3,000+ ready-made skill tests that help you confirm a candidate’s real ability before hiring. You can even create your own custom assessments based on the job role.

To know more, watch the video below:

5. Check identity early

Fake documents sometimes come with fake identities. Before conducting interviews, verify the candidate’s government-issued ID and ensure it matches their face and details. 

Many companies now utilize secure digital identity verification tools that capture a live photo and automatically compare it to the ID.

6. Call previous employers or mentors

A quick call can reveal a lot. Always reach out using official company contacts, not personal phone numbers listed on resumes. 

Ask simple questions such as job title, duration, and performance. If answers sound unclear or hesitant, it’s worth verifying further.

7. Make verification part of every hire

Fraud gets in when the process changes from one recruiter to another. Establish a fixed rule: every candidate must undergo education, identity, and skill checks before an offer is made. Add this rule to your hiring policy and train your HR teams to follow it consistently.

By following these steps, you can stop fake degrees and false claims before they cause real problems. 

How are trends and regulations shaping the fight against qualification fraud?

Qualification fraud is not a new phenomenon, but its methods have evolved significantly in recent years. It’s no longer just about fake paper degrees. 

Today, it involves digital forgeries, stolen identities, and false online profiles that look completely real. 

At the same time, governments, universities, and employers are improving their methods for detecting and preventing such fraud. Let’s examine how both technology and law are influencing this fight.

The most significant change has been the rise of digital and blockchain-based credentials. 

Many universities have started issuing certificates that can be verified online through a simple link or QR code. These credentials are stored securely in digital records that can’t be easily copied or modified. 

Some use blockchain technology (a system that keeps a transparent and permanent record of every verified qualification). This means when a candidate shares a digital certificate, employers can instantly confirm whether it’s real or not. 

Technology is also improving the tools available to employers. While fake degrees can now be created with the help of design software or AI, the same technology is being used to catch them. 

Advanced systems can scan certificates and spot editing marks or copied templates that the human eye may miss. Artificial intelligence is also helping recruiters check candidate identity through video verification, facial matching, and proctoring capabilities. 

While AI has made forgery easier, it has also provided employers with stronger tools to detect fraud in real-time. 

The legal side is changing too. New data protection and education privacy laws are forcing employers to verify qualifications responsibly. 

In Europe, the General Data Protection Regulation (GDPR) ensures that candidate data is handled safely and only with the candidate’s consent. 

In the United States, the Family Educational Rights and Privacy Act (FERPA) governs the sharing of academic records and determines who can access them. 

In South Africa, the Protection of Personal Information Act (POPI) requires employers to obtain permission before checking or storing personal data. 

These rules protect candidates from misuse of their information while allowing employers to confirm their authenticity lawfully.

There’s also a global move toward centralized verification systems. Many countries are establishing national databases that allow employers to verify the legitimacy of a degree or certificate. 

In the UK, for example, the Higher Education Degree Datacheck (HEDD) enables companies to verify qualifications directly with universities. 

In South Africa, the South African Qualifications Authority (SAQA) runs a similar database with millions of verified records. These systems make it harder for fake certificates to slip through the cracks, especially across borders.

Along with these tools and laws, awareness inside organizations is growing. HR teams are being trained to recognize fake documents, verify identity, and follow consistent background checks for every hire.

All these changes indicate that qualification fraud is becoming increasingly difficult to execute. Digital verification, blockchain records, AI checks, and privacy laws are creating a network of safety around hiring. 

Employers who adapt to these changes build stronger trust and compliance in their hiring process.

How can Testlify help prevent qualification fraud in hiring?

Preventing qualification fraud is not just about finding fake degrees. It’s about confirming that a person actually has the skills and identity they claim. 

Many companies still rely solely on resumes or background checks, but these methods can overlook vital signs of fraud. This is where Testlify becomes useful. It helps recruiters verify real abilities, confirm identity, and ensure every hire is genuine. 

Testlify provides employers with a straightforward way to look beyond certificates. It allows you to test a candidate’s actual skills before making an offer. 

If someone says they are good at Excel, writing, or coding, you can find out within minutes through real tests instead of relying on documents.

The platform offers more than 3,000 ready-made skill assessments, as well as the option to create your own. This means you can match the test directly to the role.

It also makes sure the person taking the test is the same person applying for the job. Testlify’s built-in AI video and audio interview features record responses, helping recruiters review tone, clarity, and confidence. 

Additionally, its live environment scan feature checks the candidate’s surroundings to prevent help from others. The system tracks screens and tabs to ensure no one switches windows or copies answers.

All these tools work together to make cheating or impersonation almost impossible. And because Testlify follows GDPR and FERPA standards, all personal and academic data stays secure and private.

Feature	How It Helps
Skill Tests	Confirms what candidates can actually do, not just what they claim.
AI Video Interviews	Helps identify communication skills and confirms candidate identity.
Live environment scan	Prevents cheating or help from others during tests.
Screen Tracking	Ensures candidates don’t switch tabs or search for answers.
GDPR & FERPA Compliance	Keeps candidate information secure and legally protected.

Wrap-Up: Safeguarding your hiring process

Qualification fraud is not just a hiring problem; it’s a trust problem. 

When someone enters your company with fake degrees or false claims, it affects far more than one job. It damages team confidence, wastes time, and risks your company’s credibility. The best way to stop it is by making verification a habit, not a formality.

Start with the basics. Verify every qualification directly from the source. Test fundamental skills before hiring. Confirm identity early. These small steps make a big difference. 

A hiring process built on facts, not assumptions, protects your company from fraud and helps genuine candidates stand out. 

Platforms like Testlify make this easier. You can test candidates on the skills that matter, record interviews with AI assistance, and ensure every result is verified.

If you want to see how it works in action, book a free demo with Testlify and explore how you can build a fraud-free hiring process from start to finish.