WVADA NEWS 16 Uncovering and Preventing AI Fraud in the Hiring Process Hiring has always come with a certain level of risk. Resumes can contain inaccurate information, applicants can exaggerate their experience, and references may not always tell the whole story. Artificial intelligence is adding a new layer to that challenge. Today, AI can be used to create highly polished applications, fabricate credentials, manipulate images and voices, and even help someone misrepresent their identity during a job interview. For automotive dealerships, where employees may have access to customer information, dealership systems, financial data, vehicles and other valuable assets, verifying that the person you are hiring is who they claim to be has never been more important. BambooHR reports that one in four online candidate profiles worldwide could be fake by 2028. While that projection does not mean one in four dealership applicants will be fraudulent, it illustrates how quickly hiring fraud is evolving. MORE THAN A FAKE RESUME AI-generated resumes and cover letters are not necessarily fraudulent. Many legitimate applicants use AI to help organize their experience or improve their writing. The concern arises when AI is used to misrepresent a candidate’s qualifications, experience or identity. Potential risks include fabricated resumes and credentials, identity theft, deepfakes, proxy interviews and fraudulent job postings designed to collect personal information. A proxy interview occurs when someone other than the actual applicant participates in an interview, potentially using AI-generated audio or video to conceal the substitution. A fraudulent applicant may also use stolen or fabricated information to appear more qualified than they actually are. For a dealership, the consequences can go beyond making a bad hire. An individual who gains employment under a false identity could potentially have access to customer records, dealership software, financial information, vehicle keys or other sensitive assets. That makes hiring verification an important part of the dealership’s overall risk-management strategy. WHAT SHOULD HIRING MANAGERS WATCH FOR? Hiring managers should be cautious when an applicant’s information does not add up. Warning signs can include: ∙ A resume that appears perfectly tailored to the job but does not provide many specific details about the candidate’s actual experience. ∙ Difficulty explaining previous jobs, responsibilities or accomplishments in the candidate’s own words. ∙ Information that differs between the application, resume, interview and background-check materials. ∙ Delayed or unusually unnatural responses during a live interview. ∙ A candidate who consistently avoids video or in-person interviews without a reasonable explanation.
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