Hiring smarter: How data-driven recruitment helps prevent costly fraud

An organization’s strength lies in its people—and that starts with smart hiring. In today’s fast-changing business landscape, recruitment is no longer just an HR task; it’s a strategic function that shapes integrity, stability, and long-term success.

Modern hiring comes with a new set of challenges: remote recruitment, resume fabrication, and identity fraud are on the rise.

According to the Association of Certified Fraud Examiners (ACFE), organizations lose an estimated 5 percent of revenue annually to fraud. The Asia-Pacific region is particularly vulnerable, accounting for 11 percent of all fraud cases globally, with average losses reaching $1.2 million per case—the highest across all regions surveyed.

These figures underscore a sobering reality: outdated and surface-level hiring practices are no match for today’s sophisticated threats. Fraud can slip through the cracks during recruitment, only to surface months later—by then, it’s often too late.

Pain points in the hiring landscape

• Identity and background verification Skipping this step isn’t just risky—it’s expensive. Without verified data, employers open themselves to fraudulent hires who can damage reputation, productivity, and trust.
• Evaluating true fit and integrity Resumes only tell part of the story. They lack the behavioral insights and red flag indicators that could help organizations avoid problematic candidates before onboarding.
• Balancing speed and diligence The pressure to hire quickly can backfire. Hasty decisions may fill an empty seat fast—but at what cost? A mis-hire can lead to months of disruption and added recruitment costs.

Proactive hiring as fraud prevention

The ACFE’s Occupational Fraud 2024 Report reveals that the average occupational fraud scheme lasts 12 months before being detected. That’s a full year of preventable risk—if the right screening protocols had been in place from day one.

Over half of the reported fraud incidents stem from weak or overridden internal controls, reinforcing the need for vigilance before a new hire even clocks in. Traditional hiring tools like resumes and interviews fall short of providing a complete picture. A new approach—rooted in verified, behavioral, and financial data—is required.

CIBI’s role in strengthening recruitment integrity

CIBI Information Inc., the Philippines’ first and only local credit bureau, empowers employers to strengthen their recruitment process through its Workforce Solutions suite—offering robust identity verification, thorough background screening, and accurate credential validation.

“Fraudulent behavior is often discovered only after employment begins,” says Pia Arellano, president and CEO of CIBI. “Imagine how much of that risk could be avoided if proper screening measures were in place beforehand. It’s about building a frontline defense—before the first day of work.”

Data-driven hiring: The new standard

CIBI also offers annual security checks that go beyond the hiring process. These recurring compliance reviews help organizations maintain ongoing safety, monitor risk throughout employment, and ensure the integrity of their workforce.

For companies, especially those conducting high-volume or confidential hiring, integrating verified data removes uncertainty, saves time, and promotes workplace safety. It’s not just about faster hiring—it’s about smarter, safer hiring. —Ed: Corrie S. Narisma