CIBI flags rising hiring fraud in PH
CIBI Information Inc., the Philippines’ first credit reporting agency, warned of a rise in hiring fraud that could expose companies to steep losses unless they adopt more rigorous verification systems.
The firm pointed to a mix of economic pressures, intensifying competition and the easy availability of online tools as factors that have made it simpler for job seekers to misstate or embellish their qualifications.
Common tactics include falsifying academic records, inflating work experience, inventing technical skills and, in some cases, manipulating personal identities to secure an advantage in the hiring process, CIBI said.
It added that companies risk hiring underqualified employees, which could lead to productivity setbacks, wasted recruitment investments, compliance issues and even reputational damage if third parties are affected.
“Growth is important, but it must go hand in hand with integrity,” Pia Arellano, president and CEO of CIBI, said in a statement on Monday.
“By embedding proactive verification into hiring, businesses protect themselves, their people, and ultimately the strength of the country’s labor market. Integrity in hiring is more than just a business process; it’s a public service,” Arellano added.
Steep losses
Citing a global study by the Association of Certified Fraud Examiners, CIBI said organizations could lose an estimated 5 percent of annual revenue to fraud. In a fast-moving labor market like the Philippines, the credit agency said such losses could increase costs and disrupt daily operations.
These risks, CIBI said, highlighted the need for stronger and more proactive safeguards in the hiring process, adding that traditional background checks and interviews alone no longer suffice as validation for applicant information.
“Employers require more reliable ways to ensure that new hires truly possess the qualifications and integrity their applications suggest,” it said.
“Beyond protecting businesses, stronger verification systems also safeguard honest candidates who may otherwise be disadvantaged in a hiring market clouded by fraudulent claims,” it added.
