Joy Henry, Executive Vice President, Americas
In the corporate world, hacking has traditionally been framed as an external threat. A malicious actor might use sophisticated tools or human engineering techniques like phishing to bypass security measures and gain unlawful access to confidential information, steal valuable assets, or plant malware to disrupt key corporate systems. But today, the threat is shifting. With the rise of deepfake and AI technologies, fraud is now entering from within, through seemingly qualified job candidates. These sophisticated schemes allow bad actors to create convincing false identities to land jobs and gain access to sensitive data.
A large-scale cybercrime operation based in North Korea recently made headlines in the tech world. Using fake names, North Korean IT workers applied for remote jobs in the US, using the funds obtained when hired to help bankroll the North Korean government. An advisory from the US Treasury and FBI noted that thousands such workers are dispatched across the world to help finance North Korea’s weapons program.
Fraudsters involved in the scheme are able to deceive recruiters by using video spoofing software to pass online interviews, providing fictional references, and using AI to complete coding tests and background checks. Some even hire subcontractors to interview on their behalf, aiming to appear more credible and genuine. The growing popularity of remote work and international hiring have facilitated the rise of identity fraud, since in these situations employees are no longer expected to show up in person to the office.
With its widespread adoption of virtual workplaces, the technology industry is particularly vulnerable to fraudulent candidates. It’s easy for fake developers and IT engineers to take advantage of the remote hiring process to get their foot in the door and potentially gain access to your infrastructure and code.
Finding the Right Digital Identity Solution
To counter the rise of identity fraud, the background screening industry has developed various digital identity solutions that provide employers with an additional solution to help address fraudulent applications. In fact, when we asked leading tech companies which type of product they expect to prioritize in the next 1-2 years, digital identity topped the list. According to First Advantage’s Tech Industry Survey, demand for these tools is accelerating, rising from just 22% in 2024 to 51% in 2025. The rapid growth reflects a major shift in HR and security priorities, as tech leaders respond to escalating concerns around digital impersonation, remote hiring, and increasingly sophisticated fraud tactics.
Digital identity tools help flag potential identity fraud, without requiring in-person interaction. This is done by leveraging developments in AI and biometric recognition to help assist detect inconsistencies in candidates’ information.
Here are just a few of the factors that may be considered when shopping around for a digital identity solution:
- Speed: In the tech industry, speed is everything, especially when competing for top talent. Look for a solution that can be integrated directly into the hiring and background screening workflows so you can conduct your identity solutions quickly without slowing down your time-to-hire. Screening providers that use AI to automate key steps can help you scale hiring without compromising risk or security. Collecting candidate data from identity upfront automatically feeds into the background check, reducing delays due to misinformation.
- Candidate Experience: Tech industry professionals expect a frictionless process. Your identity solution should be mobile-friendly, fast, and intuitive, enabling candidates to submit their identity information in just a few clicks.
- Privacy: Tech candidates are highly sensitive to how their data is used. Your solution should only collect the minimum data needed and keep it secure.
- Global Solution: As tech companies continue to expand globally, the need for a centralized, simple, and trusted digital identity solution becomes essential. A robust, multi-layered global identity solution streamlines the hiring process while helping to mitigate potential identity fraud and inaccuracies in candidate data throughout the entire lifecycle.
- Red Flag Detection: Your digital identity solution should go beyond basic document checks and use AI-driven pattern recognition, biometric validation, and liveness detection to flag suspicious behavior. The best tools can detect bad data before a bad actor even gets access to your systems.
First Advantage’s digital identity solution integrates before the background check workflow to provide recruiters and candidates with a seamless experience. Our robust, multi-layered digital identity solutions provide the following methods:
- Document Review Technology: Designed to identify potential counterfeit government documents and deep-fake efforts, our technology analyzes the photo IDs provided by candidates for inconsistencies and red flags. IDs are compared to an extensive database of hundreds of standard government-issued documents. If the document uploaded by a candidate is not legible, they are prompted to try again until they provide a high-quality image.
- Liveness Detection with Facial Recognition & Biographic Matching: Candidates are asked to provide a real-time selfie photo for comparison to the government-issued photo ID. Dynamic facial recognition and movement analysis tools are used to help detect discrepancies.
- Telecom and Device: Device- and telecom-based data, including device location, SSN, IP address, and more are used in the identity solution process.
- Biographic Data: Compares a candidate’s biographic information, such as name, address, SSN and other identifying information, against data held by credit bureaus.
To be most effective, timing is everything. Digital identity should be completed before the formal background check even begins. If a candidate’s information contains discrepancies, the technology will flag their report and suggest the organization should take steps to confirm the candidate’s identity in a live environment.
As identity fraud becomes more sophisticated, tech companies face a new kind of security threat – one that starts with the hiring process. With remote work now much more the norm and talent acquisition moving at record speed, it’s crucial to implement digital identity solutions that are fast, seamless, and built for a digital-first workforce.
To help fight against identity fraud and to help protect your company’s reputation, your assets, and your code with a digital identity solution, First Advantage’s can provide your candidates with a fast and seamless experience. Interested in learning more or getting started with digital identity? Contact our experts today.
