How Employers Can Protect Against AI-Enabled Candidate Fraud

What employers should know about key developments this week:

• Candidate Fraud Escalating Globally: According to the research firm Gartner, by 2028, one in four candidate profiles could be fraudulent in some way. Artificial intelligence (AI) tools now make it easier to create false identities and fabricate credentials, and employers face the dual risk of hiring unqualified candidates or unknowingly bringing in individuals with fraudulent intent.
• North Korea's Remote Worker Operation: From 2020 to 2022, the U.S. government identified over 300 U.S. companies—including Fortune 500 firms—that unknowingly hired fraudulent remote workers operating as part of a coordinated North Korean state operation.
• Building an Insider Threat Program: Hiring fraudulent candidates can result in security threats, intellectual property theft, reputational damage, operational disruption, and potential Office of Foreign Assets Control sanctions. Employers should implement a comprehensive insider threat program that identifies risk areas while complying with applicable background check laws and other federal, state, and local legal requirements.

In this episode of Employment Law This Week®, Epstein Becker Green attorneys Brian G. Cesaratto and Genevieve M. Murphy-Bradacs examine how employers can safeguard their hiring processes against fraudulent candidates and state-sponsored threats in an AI-enabled environment.

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Epstein Becker Green is a national law firm focused on health care and life sciences; employment, labor, and workforce management; and litigation and business disputes. This video is for informational purposes only and does not c