AS FRAUD becomes more complex and costly, Philippine businesses are being urged to overhaul traditional recruitment practices and adopt data-driven strategies to safeguard operations and strengthen hiring security.
According to the Association of Certified Fraud Examiners (ACFE), global organizations lose an estimated five percent of annual revenue to fraud, with Asia-Pacific reporting the highest average losses per case at US$1.2 million. In many instances, fraud schemes persist undetected for up to 12 months, underscoring the urgent need for more robust hiring protocols.
Talent screening has become a strategic priority for businesses facing rising threats from resume fabrication, identity fraud and mis-hires—issues that not only incur financial damage but also impact reputation and operational continuity.
“Fraudulent behavior is often discovered only after employment begins,” says Pia Arellano, president and chief executive officer of CIBI. “Imagine how much of that risk could be avoided if proper screening measures were in place before a candidate even steps into the role. It’s not just about internal controls — it’s about building a frontline defense against fraud before it has a chance to occur.”
To address these challenges, CIBI is helping companies elevate their recruitment safeguards through its Workforce Solutions platform, which includes tools for identity verification, background screening and credential validation. The platform aims to provide deeper behavioral insights into candidates, going beyond the limitations of resumes and interviews.
CIBI’s approach also includes recurring annual security checks, helping companies proactively monitor risks throughout an employee’s tenure. These ongoing assessments are designed to support compliance, protect workplace integrity and bolster public safety.
The ACFE’s Occupational Fraud 2024 Report revealed that over half of reported fraud cases were linked to weak or overridden internal controls. Experts warn that rushing recruitment decisions without sufficient vetting can lead to costly hiring errors and prolonged exposure to internal threats.
As the demand for faster hiring persists, experts stress that businesses do not need to choose between speed and quality. Instead, integrating verified data and behavioral indicators into hiring workflows can accelerate decision-making while reducing the risk of fraud.
With the growing complexity of recruitment and fraud risks, industry leaders said smarter, data-driven hiring practices will be critical to creating resilient organizations. / KOC