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As a business, finding the right talent to help your business thrive can be challenging, especially for fast-growing startups. In 2025, having reliable people on board is more important than ever to stay competitive in a rapidly evolving market.
This is where the issue of CV fraud comes into play – whether during the hiring process or even after you’ve employed someone, you might eventually discover inconsistencies in a staff member’s CV.
CV fraud can affect all employment positions in businesses of any size, from small ventures to large corporations.
This article will walk you through some practical steps you can take to prevent and address CV fraud as an employer in 2025.
What Is CV Fraud?
CV fraud occurs when an employee or prospective employee falsifies or exaggerates information on their CV. The extent of the embellishment can vary, resulting in differing consequences.
Common embellishments may include overstating the level of experience, misrepresenting previous job roles, providing inaccurate employment dates, or even fabricating educational qualifications.
Often, candidates may misrepresent their credentials to qualify for a role they might not otherwise secure or to increase their bargaining power during salary negotiations.
While it’s challenging to completely prevent dishonesty on a CV, thorough background checks and verification processes can significantly reduce the risk and help ensure the candidate’s resume is truthful.
What Are The Consequences For Your Business?
The potential ramifications for your business are significant, ranging from financial setbacks to a detrimental impact on company morale. Here’s how CV fraud can affect your operations:
- Social: An employee who falsifies their CV may bring along unprofessional or problematic behaviours that disrupt team dynamics.
- Additional Fraudulent Activities: Such an employee might continue to engage in further deceptive practices that damage your business’s reputation.
- Slowing Business Growth: Hiring someone who lacks the stated qualifications can result in underperformance, hindering overall business growth.
- Financial Impact: Paying wages based on an incorrect assumption of competency can lead to inefficiencies and wasted resources.
- Vicarious Liability: Your business could be held accountable for an employee’s actions. If the employee does not have the correct qualifications, this can lead to operational risks and even harm customers.
- Your business might even face investigations for maladministration practices during the hiring process.
Example of Vicarious Liability
| Tobias runs a horse riding business for tourists in the Snowy Mountains. He hires a tour operator, Julie, who claims to have 8 years’ experience as a horse riding tour operator in Sydney and that she has completed a tour operating course at TAFE. However, Tobias fails to verify Julie’s references or request a copy of her TAFE certification. In reality, Julie has only handled horses for 6 months and is in the early stages of her TAFE course. While leading a tour group, she neglects to notice that a horse is unwell and fails to enforce proper safety measures. Consequently, a horse trips and falls with a rider, causing severe injuries. The injured rider then sues the horse riding business for negligence. |
What Can Employers Do After The Fact?
In most cases, standard disciplinary measures should be considered before moving directly to dismissal. For further guidance on contract compliance, you might also explore our Employment Contract resources.
Depending on the severity of the fraud, the employment contract may be deemed breached, which could justify termination. In some circumstances, while the fraud is under investigation, the employee might be suspended with or without pay. It’s crucial to follow proper disciplinary procedures to avoid potential claims of unfair dismissal. You may also wish to consider our Contract Review and Redraft service to ensure your processes remain robust and compliant.
| In Stapleton v City of Parramatta Council [2023] NSWSC 123, discrepancies were found in Mr Stapleton’s CV. While this was being investigated, he was suspended with full pay. Mr Stapleton attempted to contest his dismissal by arguing that the dispute resolution process outlined in his employment contract had not been followed. Ultimately, his appeal was unsuccessful, leading to his termination. |
In more extreme cases, an employee who secures their position through CV fraud can face criminal charges. In a notable case reported in early 2025, a public servant was charged with deception, abuse of public office, and dishonestly dealing with documents after falsifying her work history and qualifications. The individual received a 12-month prison sentence.
How Can You Discourage Or Check Potential CV Fraud?
The simplest step you can take as an employer is to conduct rigorous background checks and thoroughly follow up with references.
As part of the application process, consider requiring applicants to sign a declaration confirming that all information provided is accurate and that they understand the consequences of any dishonesty. This practice aligns with the recommendations outlined in our Employment Contract guidelines.
Ensure your employment contract includes a clause stating that all information provided must be truthful, along with clear consequences for providing fraudulent information. For further details, our article on how important an employment contract is provides useful insights.
Additionally, updating your workplace policies to clearly articulate the ramifications of CV fraud is essential. Check out our Workplace Policy & Staff Handbook resource to help set expectations and ensure transparency among your team.
- Annual CV auditing can serve as a reminder that all CVs are subject to verification.
- Publishing select CV details internally may discourage candidates from exaggerating their qualifications.
- Integrate the consequences of CV fraud into your workplace policy and ensure it is easily accessible to all employees.
- Review and verify the candidate’s LinkedIn profile as part of your due diligence process.
- When conducting reference checks, use contact details that are publicly available (such as an organisation’s official landline) instead of solely relying on numbers provided by the candidate.
Furthermore, by 2025 many organisations have adopted advanced digital verification tools and blockchain-based credential checks, making it easier than ever to confirm a candidate’s qualifications and employment history in real time. These innovations complement traditional reference checks and help safeguard your hiring process.
The Takeaway
While the consequences of CV fraud can be wide-ranging and serious for both the employer and employee, the measures to prevent it remain relatively simple and cost-effective. Implementing robust verification processes and clear contractual obligations can help protect your business from costly setbacks.
Should you discover CV fraud after a staff member has been hired, or if you need advice on refining your hiring procedures, feel free to reach out to our employment lawyers on 1800 730 617 or via email at team@sprintlaw.com.au for an obligation free chat!
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