SAFERjobs: Recruitment agencies targeted by sophisticated fraud

SAFERjobs have issued a reminder about the latest bout of sophisticated fraud on recruitment companies, according to Keith Rosser, Chair of Safer Jobs.

A referral from a recruitment agency to SAFERjobs, found that the fraudsters released job roles to recruitment companies on behalf of a ‘genuine’ business looking for staff. The business then provided information on potential candidates for the recruitment company to contact or a candidate will apply for a role, however, they were not genuine. These ‘ideal’ candidates, usually available for immediate start, are then paid by the recruiter for a significant period without being paid by the employer, resulting in hefty financial loss.

An investigation by the Metropolitan Police found that the recruitment company was one of many targeted, and a cease and desist order has been issued against the fraudster. Correspondence from the fraudsters email account has been stopped.

Detective Chief Inspector Andy Gould, from the Met Police FALCON Unit, comments: "Recruitment companies are an attractive target for fraudsters. Companies should be aware of the threat of fraud and make sure appropriate due diligence is taken to protect their business. Safer Jobs is a fantastic resource and I would encourage recruitment companies to sign-up with them and protect themselves from the threat of fraud."

Last year, research by CV-Library found that 56% of recruiters believe job scams and job-related fraud are a big issue for the sector.

The SAFERjobs website advises all recruitment companies to: 

  • Ensure due diligence is done on all new client accounts.
  • Contact the new client head office to confirm authenticity.
  • Ensure all 'client-supplied' candidates are properly vetted, especially those who seem ideal for the role and available for immediate start.
  • Report suspicions to SAFERjobs via the website.
  • Join SAFERjobs to receive updates on the latest frauds affecting the recruitment sector (currently supported by 35 of the UK's top 50 job boards).
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