Has AI become the solution and the problem in the hiring process?

AI is creating mo’ solutions, and maybe problems.

Many recruiters use AI tools to sift through résumés and source candidates, but more and more HR pros are growing concerned about the rise of AI application fraud.

While 78% of people pros say AI increases hiring and onboarding efficiency, 36% report the rise of AI-generated candidate information has reduced their confidence in hiring decisions, an Equifax report found. Nearly three-fourths (73%) of HR pros have seen “fabricated or misleading candidate information.”

“What we’re seeing is there’s more efficiency. It’s a faster process…The challenge is the stories of the folks who slip through,” Chris Johnson, a SVP and general manager of employer services at Equifax, said. “They’re stories both of human error in the process, but they’re also stories of opportunities for us to incorporate AI into the process, so we can check for fraud along the way.”

What HR can look out for. Recruiters and talent pros need to be vigilant when cross-checking information on résumés and cover letters, Johnson told HR Brew, because AI tools can exaggerate or fabricate details. But perhaps a bigger concern that HR needs to be wary of, he added, is candidates using false identities.

“This would be a worker who is running two or more full-time W-2 jobs, will fabricate a resume, create an identity, onboard using that identity, get paid for it for a period of time, and often for a nefarious purpose that’s beyond simply capturing an extra paycheck,” Johnson said. “This person might actually be a fraudster or a hacker trying to get into your system.”

There have also been instances where job seekers have someone else interview for a job on their behalf, said Bart Lautenbach, SVP and general manager of talent solutions at Equifax. This could happen with remote roles, he noted, since hiring managers and recruiters might never meet candidates face to face.

What can HR do? Application fraud is not a new problem for people pros, Lautenbach told HR Brew. But how it’s detected is changing with the introduction of AI. There are three points in the hiring process at which HR should check for evidence of AI fraud: the interview, the background check, and the onboarding process. The best approach for HR, Lautenbach said, is to “trust, but verify.”

In response to the rise in AI applicant fraud, some companies like McKinsey and Google have reverted back to in-person interviews, the Wall Street Journal reported in late 2025.

But that doesn’t have to be the solution for every company, Lautenbach said. HR pros can reduce the risk of fraud by ensuring they have reliable technology and software to validate applicants’ IP addresses, identities, credentials, and work experiences, he said.

“Let’s make sure that the remote technology we have has a high level of fidelity,” he said. “If you’ve got strong data combined with a strong process, that allows you to expand as far and wide as you necessarily need to be.”