Have you ever had candidates fake their references on their resumes? Surprisingly, not all employers request references during the hiring process to confirm a candidate’s reliability and experience.

Finding and addressing fake references can save your business time and money by preventing hiring mistakes. Underperforming employees can waste resources, including time spent managing issues, recruitment costs, and severance payments. 

A well-executed hiring process focuses on finding strong candidates who fit the role, reducing future problems by eliminating unsuitable applicants.

Keep reading to learn how fake references can negatively affect your business, how to recognize an imposter reference, and what to do when you find one.

5 Key Takeaways:



1. Importance of Reference Checks: Reference checks provide critical insights into a candidate’s past performance, reliability, and cultural fit, helping employers make informed hiring decisions and avoid costly mistakes.
2. Risks of Fake References: Hiring based on fraudulent references can lead to underperformance, legal liabilities, reduced employee morale, and reputational damage.
3. How to Spot Fake References: Verify credentials, cross-check information, and look for red flags like vague job descriptions or inconsistencies between resumes and references. Professional fraud prevention tools can enhance detection.
4. Employer Responsibility: Employers are accountable for conducting due diligence. Negligent hiring claims or compliance violations in regulated industries can arise from failing to verify references.
5. Value of Third-Party Screening Services: Outsourcing reference checks ensures accuracy, saves time, and helps businesses remain compliant with regulations while protecting sensitive candidate data.

The Difference Between Reference Checking and Employment Verification

Employment verification checks facts like job titles, work dates, and salaries a candidate shares. Employers use reference checks to learn more about an applicant’s past performance and character. They typically ask references about the candidate’s strengths, areas requiring improvement, and contributions to previous roles to predict how the candidate might perform in their company.

Human rights laws require businesses to avoid discrimination based on age, race, gender, family status, or disability. When checking references, avoid asking about any of these protected traits. If it’s not something you’d ask a candidate during an interview or on an application, it’s best to leave it out of your reference questions, too.

Why You Shouldn’t Skip the Reference Check

Reference checks can boost your hiring confidence by uncovering:

• Inconsistent details: References might contradict what the candidate claims. Follow-up questions can help you clarify if there is a misunderstanding or concern.
• Missing information: References often provide details not listed on the candidate’s resume, especially when the application only covers the basics.
• Professional behaviour: Former employers can share insights about the candidate’s work habits and reliability — factors that aren’t usually included on a resume.
• Cultural fit: Reference checks can show if the candidate's values and work style align with your company culture.

Why Candidates Provide Fraudulent References

Understanding motivations can help you determine how to proceed when you uncover dishonesty. Below are several reasons candidates may give fake references:

• Limited experience: Applicants with little to no work history might feel pressured to make up references instead of explaining their situation to the interviewer.
• Lost contact with former references: Relocating or working for a now-closed company can make providing contact details for past employers challenging.
• A gap in work history: Candidates may falsify references to cover lengthy employment gaps and exaggerate their work experience.
• Poor relationships with past employers: Leaving a previous role on bad terms could tempt applicants to skip their former employer as a reference.
• Hesitation to ask for references: Some candidates feel uncomfortable asking their go-to’s to speak on their behalf, especially when applying for many jobs at once.

How to Spot Fake References

Does an applicant’s references sound too good to be true? There’s a good chance they might be. Here’s how to determine genuine sources:

Verify Reference Credentials

Verify the reference's identity by checking professional networks or company websites to see if their details align with the applicant's information. For written references, look for official letterhead; for emails, confirm you’re receiving them from a corporate address. If the email uses a personal service like Gmail or Hotmail, follow up to verify its legitimacy.

Cross-Check Information

Cross-check reference information against the applicant's resume and interview responses. Look for differences in dates, job titles, or responsibilities. If you find any inconsistencies or vague answers, continue investigating until you know if the information is accurate.

Be Aware of Exceptions

Personal email addresses or mobile numbers don’t always mean something is suspicious. Small businesses or closed companies might require personal contacts instead. Always ask extra questions to make sure the reference is genuine.

Use Additional Screening Tools

Many fraud prevention services offer professional checks to identify fake references. If you deal with only a handful of applications, you can also do thorough and dependable manual checks.

Review the Applicant's Resume

Look for red flags such as vague job descriptions, employment gaps, or exaggerated experience. These can indicate a need for deeper investigation into the references provided.

How to Handle Reference Letters

Job candidates might include written references with their applications, but these only tell part of the story. Often, what’s left out of a reference letter is just as important as what’s included. Talking to the person who wrote the reference letter can give you influential insights into the candidate's job performance, behaviour, and how they might fit into your team. 

Also, check who signed the letter. One from a former supervisor can give you specific, relevant feedback. But, if it’s from an HR manager, it could be related to a legal agreement, such as a dismissal settlement. These letters can be vague, and follow-up questions are typically met with limited answers, suggesting the employer is restricted in what they can share.

What to Do When You Discover a Fake Reference

If you discover a candidate has used fake references, reconsider their application immediately. This behaviour shows dishonesty, which can raise concerns about their trustworthiness and integrity. If you haven't made a job offer yet, or if the offer depends on reference confirmation, it's best to end the hiring process at this point.

If the applicant has already started working when the fraudulent references come to light, you may need to consider termination. Getting advice from an employment law professional can ensure your actions align with legal requirements.

Can Employers Be Held Responsible for an Employee’s Fake References?

While Canadian law generally holds employees accountable for providing false information, employers also have a duty to conduct reasonable due diligence during the hiring process.

Do you suspect that a candidate is using fake references but are still considering hiring them? Proceed cautiously. Employers can sometimes be responsible for hiring an employee with fake references, especially if the employee causes harm due to their lack of qualifications or dishonesty. 

Be extra thorough during the remainder of your employment verification and background screening process to uncover other possible misrepresentations. Here are a few scenarios to consider:

• Negligent hiring claims: If an employer fails to verify references properly and the employee's actions harm others (ex: coworkers or clients), the employer could face legal action for negligence.
• Regulated industries: In fields like healthcare or finance, where trust and qualifications are critical, failing to verify references could lead to penalties or reputational damage.
• Internal policies and audits: In some organizations, not verifying references could breach internal compliance policies, potentially leading to audits or internal investigations.
• Reduced employee morale and trust: Hiring someone with fake references can damage employee morale if colleagues feel the new hire is unqualified or dishonest. It can erode trust within your team, leading to a less cohesive and productive work environment.

Beware of “Professional Reference Services”

Many “professional reference services” companies offer job seekers a way to falsify their work history or credentials. These scammers create fraudulent references, including fake phone numbers, email addresses, and websites that mimic legitimate businesses. 

Here’s how it typically works:

These companies help people create fake references, like a pretend employer or coworker. They might offer scripted phone calls, counterfeit letters with official-looking logos, or professional-looking emails to trick employers into thinking the references are real.

Some companies offer services that include creating false job histories with fabricated job titles, duties, and accomplishments as part of an employment verification package. They create responses that align with what employers expect to see during background checks, making the fake references appear credible.

These services take advantage of flaws in traditional reference checks, like relying only on phone or email. Verification tools and enhanced cross-checking methods are making it easier for employers to catch fake references, limiting the effectiveness of these tricks.

How Can a Third-Party Screening Service Help Your Business?

Third-party screening services make hiring easier by handling reference checks and verifying credentials like job history and education. They save time by avoiding delays from scheduling conflicts or lengthy reference calls.

These services use specialized tools and networks to provide accurate and reliable results, reducing mistakes or missed details. This strategy ensures a thorough and efficient vetting process so businesses can focus on choosing the right candidates without extra admin work.

Outsourcing also helps your business stay compliant with complex regulations. These providers stay updated on current laws, reducing the risk of legal issues. They also protect sensitive candidate data, ensuring confidentiality and preventing breaches during the hiring process.

Eliminate the Threat of Fake References with Hire Performance

Hiring someone with fake references can put your business at serious risk. It could cost you your reputation, lead to costly legal battles, and even expose your company to negligent hiring claims. 

Why take that risk? Protect your business with Hire Performance. Our thorough background checks and reference verification services help you avoid the costly mistakes of hiring someone with fake references. Don’t wait until it's too late — we’ll ensure you hire the best and most trustworthy candidates. 

Protect your business, your team, and your future.

Reach Out Today!