Beware the “Perfect” Candidate: Fake Job Seekers Are Targeting Small Businesses

For small business owners, the hiring process already comes with its fair share of headaches. But now there’s a new – and much more serious – threat to be aware of: fake job applicants using AI-powered deception to infiltrate your business.

As CNBC recently reported, individuals – sometimes linked to foreign governments – are using deepfake videos and AI-generated resumes to pose as ideal candidates, particularly for remote roles. Once hired, their true goal may be to access customer data, steal trade secrets, or compromise internal systems. It sounds like a scene from a spy movie, but it’s happening across the country. The research firm Gartner predicts that by 2028 up to 1 in 4 job candidates could be AI-generated fakes.

Why Small Businesses Are Being Targeted

Larger corporations often have layers of security and vetting systems in place. On the other hand, smaller businesses, particularly startups and lean operations, often lack the in-house recruiting teams or advanced screening tools that larger companies rely on. Without those resources, fake applicants can more easily slip through the cracks, especially during remote hiring where deepfakes and digitally manipulated materials are harder to catch. Once inside, these impostors can quickly become an insider data security threat, putting customer information and proprietary systems at serious risk.

These fake applicants may present well-crafted resumes and polished video interviews. But in many cases, they’re not who they claim to be. Some are using AI tools to mimic human voices and facial movements, or deepfake technology to pass off pre-recorded answers as live conversations.

Real-World Impact

In recent cases, fake hires have gained access to sensitive databases, financial systems, and even client files. Some companies do not discover the deception until weeks or months later after damage has already been done.

These risks are especially high for businesses that:

• Collect customer data (e.g., in e-commerce, healthcare, legal, or financial services)

• Develop proprietary software or IP

• Allow remote access to internal systems

• Use contractors or freelance workers based on virtual interviews

How to Protect Your Business

Here are a few steps you can take now to help prevent hiring a fake candidate:

1. Verify identity independently.

Don’t rely solely on resumes, virtual communication, or even video interviews. Request official identification and use third-party identity verification platforms when onboarding.

2. Watch for red flags.

Be cautious of candidates who insist on avoiding live interviews, have overly polished materials, or show inconsistencies between their voice, video, and resume timeline.

3. Conduct thorough background checks. 

Use reputable services that go beyond basic employment verification. Consider checking IP addresses, LinkedIn profiles, and professional licenses.

4. Limit access during onboarding. 

Don’t give new hires full access to internal systems on day one. Use role-based access controls and gradually increase permissions after trust is established.

5. Update your employment agreements. 

Make sure your hiring contracts and NDAs include provisions addressing data protection, misrepresentation, and termination for cause.

If you're growing your team or shifting to more remote hiring, it’s time to tighten your onboarding process and review your legal safeguards. Our firm regularly helps businesses create secure hiring workflows, draft protective employment agreements, and respond to cybersecurity breaches and internal fraud.

The risks are evolving, but so are the tools to fight them. If you're unsure whether your business is protected, we’re here to help.

Need a hiring policy review or help tightening your onboarding contracts?

Reach out to our team of experienced business attorneys to schedule a consultation.