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Employment fraud is any deliberate deception connected to the employment relationship, committed either by someone trying to get hired under false pretenses, or by an existing employee misusing their position for personal gain. It is a broader category than hiring fraud alone, hiring fraud (impersonation, resume fabrication, proxy interviewing) is really the pre hire subset of a much wider problem that continues after someone is on payroll.
Understanding the full picture of employment fraud helps HR teams build controls that do not stop at the offer letter. (Bold markers above are for internal review only, remove bold before publishing.)
This is the type of employment fraud most HR teams think of first, deception that happens before or during the hiring process itself:
For a deeper look at any of these specific patterns, Glider’s ID Verify guide covers identity level fraud in more detail, and our candidate fraud data post covers what this looks like at scale across millions of assessments.
Once someone is actually employed, the fraud categories shift toward misuse of position and access rather than misrepresentation to get hired. Common categories, drawing on the wider occupational fraud research from groups like Teramind and the Association of Certified Fraud Examiners, include payroll fraud (manipulating hours, pay rates, or commission claims), expense account fraud (inflated or fabricated reimbursement claims), ghost employee schemes (keeping a departed or fictitious worker on payroll), benefits fraud, and asset or intellectual property misappropriation by someone with legitimate system access.
HR teams often build strong pre hire screening and comparatively weak post hire monitoring, or the reverse. Both halves of employment fraud share a common root cause: verification that is treated as a one time gate rather than something maintained across the relationship. A candidate verified thoroughly at the offer stage can still commit post hire fraud later, and a company with strong internal controls can still let a fraudulent hire through the front door if pre hire identity and skills claims are not actually checked.
Build pre hire verification into the process itself, not as a final formality, using identity verification and structured, scored skill assessments rather than relying on resume claims and interview impressions alone. On the post hire side, pair standard financial controls (separation of duties, expense audits, payroll reconciliation) with a clear, well communicated reporting channel for suspected fraud, since most occupational fraud research consistently finds that tips from employees, not audits, are the most common way fraud is first detected.
Employment fraud does not stop at the interview, and treating it as purely a hiring problem leaves the post hire half of the risk unmanaged. Building verification and monitoring into both halves of the employment lifecycle, rather than just the front door, is what actually closes the gap.
Employment fraud is any deliberate deception connected to the employment relationship, including pre hire deception such as resume or identity fraud used to get hired, and post hire deception such as payroll, expense, or ghost employee schemes committed by someone already employed.
Common pre hire types include resume fraud, application fraud, and identity or proxy fraud during interviews. Common post hire types include payroll fraud, expense account fraud, ghost employee schemes, and benefits fraud.
HR teams can reduce pre hire fraud with identity verification and structured skill assessments rather than relying on resume claims alone, and reduce post hire fraud with standard financial controls, expense audits, and a clear channel for employees to report suspected fraud.
Yes, in most jurisdictions, employment fraud can carry criminal liability depending on its severity, ranging from termination and civil liability for smaller misrepresentations to criminal fraud charges for schemes involving significant financial theft or falsified legal documents.
Hiring fraud refers specifically to deception that happens before or during the hiring process, such as resume fabrication or proxy interviewing. Employment fraud is the broader category, covering hiring fraud as well as fraud committed after someone is already employed.
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