The Rise of Illegal Referencing Farms
You may or may not have heard of illegal referencing farms (also known as reference houses or fake reference services), but if you’re responsible for conducting background checks on candidates, this is a term you should be aware of. As employers recognise the importance of conducting thorough and compliant background checks, it's crucial to stay ahead of the curve and be vigilant about new methods candidates may use to falsify their personal history.
In this blog, we’ve explored illegal referencing farms, what they are, how they operate, the risks and implications they pose, and our top tips for spotting a fake reference.
What are ‘illegal reference farms’?
Illegal reference farms are used by candidates during the hiring process to validate the information they have given as part of their pre-employment checks. Candidates will pay an illegal referencing farm for fake references, which is both unethical and illegal.
How do they work?
These reference farms pose as legitimate companies, and many operate across the UK. Some are more basic and easier to detect, while others go to great lengths to appear authentic. More sophisticated fake reference services create a false online presence, complete with functional websites, social media profiles, and even employees posting regularly to make them seem credible. This can make spotting them particularly challenging, especially for busy companies eager to expedite the hiring process and fill positions quickly, where it’s easy to miss the warning signs.
Referencing farms employ individuals trained to provide positive references for candidates who pay for their services. These individuals are typically briefed by the candidate about the job they’re applying for and given the relevant job description. This allows the reference farm to craft a reference that aligns perfectly with the employer’s expectations, presenting the candidate as an ideal fit for the role.
Why do candidates use illegal reference farms?
Candidates may use fake references for various reasons, such as employment gaps, lack of experience, leaving a company on bad terms, or past workplace misconduct. While many of these issues could be addressed and clarified during the hiring process, some candidates still resort to fake references to avoid scrutiny. This makes thorough due diligence during pre-employment checks essential. As a hiring manager, it’s crucial to remember the importance of verifying employer references and understanding why this information is critical before extending a job offer.
According to StandOutCV, who completed a study on a group of people, 1 in 4 (25.4%) people have lied about employer references, and 9 in 50 (18.5%) stated they have used fake job reference services.
How to spot a fake reference
With all of the points discussed above, you may be feeling concerned about the sheer number of fake references that employers receive, and how many illegal reference farms there are in the UK. However, there are ways in which organisations can keep on top of the curve and be able to spot a fake reference.
Below we have outlined some key areas that you can look out for to help you in spotting a fake reference, along with some tactics to help you check for legitimacy.
Automated/Generic responses:
Whilst fake references, and the workers within these farms can be highly skilled in what they are doing – there are also lots of farms that are not so skilled and will try to reduce costs by limiting the number of workers they have, resulting in more frequent automated and generic responses being used to save them time. You should note whether you are receiving generic and automated responses, and question whether these are related to the role the candidate has applied for, or whether they could be for any role!
Inconsistent information:
Cross check the information a candidate gives you about the company and role they were previously in, and whether this aligns with the reference you have received from the ‘employer’.
Difficulty verifying the candidate’s employer:
You may be struggling to find the company website, or even verify that the company exists. If you are struggling to find a website, contact details or office location, this should serve as a warning sign for you to delve deeper. Look on Companies House to see if you can find further information on the company.
Use social media:
With LinkedIn being such a commonly used social media platform in the corporate world, along with other platforms, you can utilise this and have a look through the company’s social media accounts. See if you can find people who work at the company and whether the accounts look legitimate.
Keep an open mind and remain objective:
Remember that candidates of all ages and varying levels of experience can use fake references, so it is important to remain open-minded and not make assumptions about which candidates you think may, or may not be using fake references.
Train HR teams with evolving technology
Aside from the points listed above, it is important to remember the time-consuming task of conducting background checks. With HR teams often being stuck for time, training your team and using a tool to support with this, such as a trusted background checking platform, not only reduces time, but also supports with ensuring the correct checks are conducted whilst remaining compliant.
In summary, using fake references is illegal, and providing false information may result in fraud. By conducting thorough and compliant background checks, you not only protect your business from potential risks but also ensure you hire the right person for the role.
If you would like to find out more about conducting your background checks with VettingGateway, please book a demo with a team member below.
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