One in 10 small and medium-sized firms across Yorkshire have received a fraudulent reference for a potential job candidate, a survey has revealed.
Of that number, 60% say that it has happened between one and five times in the last five years alone, while a fifth state that they have received more than 10 dishonest job references in that time period.
The figures, drawn from the Close Brothers Business Barometer – a poll of SME owners and senior management across the UK – also suggest that the most commonly received false references in the region are for mid-level positions (60%), followed by entry or low level positions (40%).
Lee Hayes, regional sales director for Close Brothers Invoice Finance in Yorkshire, said: “The scale of reference falsification in the region is quite surprising, but also alarming.
“Employee fraud could pose a significant threat to a small business both in terms of its image, reputational damage and ultimately financial wellbeing.
“An artificial reference could be used to exaggerate experience, cover up breaks in employment or to conceal an otherwise poor recommendation from a former employer. It’s not difficult to imagine how hiring someone who has in some way deceived you about their work history could potentially cause serious issues down the line.”
The survey also found that 65% of local employers are unaware of the existence of websites that offer fictional references in return for a fee.
“Managing the risk of employee fraud should be high on the list of priorities for all businesses and it merits attention in a firm’s overall risk management strategy,” said Mr Hayes.
“The important thing is to be aware that this type of dishonesty exists so that you can take the necessary steps to protect your business.”
