Return-to-office (RTO) mandates recently returned to the headlines. Amazon, for example, has called for its employees to come to the office five days a week starting January 2, 2025.
Business Insider's growing list of companies doing the same includes industry giants like JPMorgan, Amazon, Apple, Citigroup, and Disney. Since late 2022, the debate around RTO has only intensified.
While companies argue that productivity, creativity, and collaboration are best achieved in physical settings, there are hardly discussions about another reason for this push — the rise of fake employees.
Recent reports have highlighted an increase in hiring fake employees, particularly in the tech space.
The problem goes beyond remote workers slacking or juggling multiple jobs. It’s about non-existent people or legitimate employees transferring their responsibilities to third parties.
Multiple cases of fake candidates
In one of the most alarming cases, Mandiant, a threat intelligence firm, revealed that North Korea-backed IT workers were posing as non-North Korean nationals to gain employment in Western companies, primarily in the US.
These often well-trained individuals appeared to be highly competent professionals and could seamlessly blend into remote teams. However, their objective wasn’t just about earning a paycheck.
They were strategically placed to conduct espionage, alter application source code, and create back doors, putting companies at severe risk.
What’s disturbing is how easily these fake candidates slip through the cracks, particularly during remote hiring processes. Many recruiters in a hurry to fill positions overlook important vetting steps because "it is a remote role."
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The North Korean example isn't new. At the 35th Annual ACFE Global Fraud Conference, Christopher DeAngelis, Vice President, of ACFE, spoke on a session titled, "Are you sure your remote employee is real?"
A survey conducted by the association in 2023 found that cases of remote hiring fraud had surged by over 35% in the past two years. This includes everything from fake identities to individuals using deepfake technology to pass video interviews. And it’s not just a problem in the US or Europe.
A senior tech recruiter shared their experience screening a candidate with an amazing profile, but who suddenly started avoiding video calls.
He concluded the candidate was probably using someone else’s credentials, and a video call would have blown their cover.
Proxy employment
Another angle of this fake employee phenomenon is proxy employment. Imagine hiring a product designer only to find out that the person working on your project is a completely different person.
This is a growing problem as remote work opens up opportunities for workers to juggle multiple roles or even delegate tasks to cheaper freelancers.
It’s one thing for employees to do multiple jobs, but it’s entirely different when they pass their tasks to others without their primary employer's consent. They may pay this person a fraction of their salary and keep the rest. This means employers unknowingly pay for substandard and outsourced work.
This phenomenon is called overemployment hacking. Some professionals even share tips and tricks on how to simultaneously maintain several full-time roles without getting caught.
The consequences for employers are severe: missed deadlines, and, in worst-case scenarios, confidential projects are leaked or compromised.
Africa is not left out of this trend making waves in the US, especially with the increasing adoption of remote work across the continent. It's only a matter of time before local businesses begin facing similar challenges.
The growing prevalence of freelancing platforms and the gig economy has also made it easier for talents to work multiple jobs, sometimes without informing their primary employers.
Employers need to be proactive even though similar cases aren't making the local headlines yet. The key is to anticipate and implement safeguards before falling prey to these schemes. What measures can recruiters take to protect their workforce?
How to avoid fake employees
Recruiters advise the adoption of a blend of virtual and physical interviews in the screening process. Considering live practical assessments for technical roles can prevent candidates from outsourcing test tasks. Conducting multiple video interviews with different team members can also help gauge consistency in responses and body language.
Employee contracts should warn against any form of job outsourcing, such that outsourcing without written consent will result in immediate termination and attract legal action.
In extreme cases, recruiters can employ tools like identity verification platforms and deepfake detection software during the hiring process. They can also use two-factor authentication and device monitoring for remote employees to ensure that the person hired is the one doing the work.
While RTO sounds like the perfect and easiest way to tackle the problem, it should still be approached cautiously. Employers' insistence on employees returning to the office has backfired because of activists and internal petitions; the 2,300 Disney employees is a good case in point.
Companies can implement a hybrid model where employees are required to physically attend work a few days a week for face-to-face interactions that build trust while maintaining the flexibility that many workers now value.
Ultimately, a company culture built on trust, transparency, and accountability can keep out potential fraudsters. Employees should be encouraged to report any suspicions about a team member; companies can also implement a whistleblower policy.