Fake jobs, fraudulent applications erode trust in hiring: Report

The report found that 19.2% of employers cited fake or fraudulent applicants as a top online recruiting challenge, while 23.6% said they had received at least one such application in the past year.

Fake jobs and fraudulent applications are emerging as major challenges for employers and jobseekers, with concerns over legitimacy, communication and the growing use of AI putting pressure on trust in online recruitment, according to iHire's 2026 State of Online Recruiting Report.

For jobseekers, fake, fraudulent or "ghost" jobs were an even bigger concern. Some 39.3% identified them as a chief job search challenge, while 41.2% said they had encountered a fake or scam job in the past year.

Candidate trust gap

Uncertainty is also affecting how candidates navigate online recruitment platforms. Some 42.8% of jobseekers said they are increasingly frustrated by determining whether a job or employer listed on a recruiting platform is legitimate.

A further 57.5% said they are frustrated by not knowing whether they will receive a response from employers after applying.

"Our research shows that trust, transparency, and human connection matter more than ever in recruiting," said Steve Flook, iHire's president and chief executive officer, in a statement.

"Employers are receiving unqualified and sometimes fraudulent applicants, and job seekers are questioning whether opportunities are legitimate and if they'll hear back after applying."

AI adds to concerns

The trust challenge comes as employers continue to incorporate AI into recruitment, although candidates' perceptions of the technology remain cautious.

Gartner's findings last year showed that 25% of job candidates trust employers less when AI is used to evaluate their information. The report similarly found that 44.3% of jobseekers view employers' increasing use of AI negatively.

At the same time, the proportion of employers reporting AI use in recruitment has declined slightly. Some 24.2% currently use AI in recruiting, compared with 25.9% in 2025.

AI use remains administrative

Among employers using AI, administrative and content-related tasks remain the most common applications. These include writing job advertisements at 66.2%, composing candidate communications at 62.3% and automatically sending messages at 31.2%.

Around 29.9% of employers said they use AI to screen applicants or CVs.

The findings suggest that while AI adoption continues across recruitment workflows, candidates remain concerned about how technology affects transparency and their interactions with employers.

Human touch matters

The report calls for employers to combine technology with greater human involvement to address growing trust concerns across the recruitment journey.

Salary transparency also emerged as an important factor. Some 60.7% of jobseekers said they would not apply to a company if its job posting did not include salary information.

"Moving forward, companies that blend the human touch with technology, promote a strong employer brand, and provide a positive candidate experience will be best positioned to find the right talent," Flook said.

Employer branding is another key part of the candidate decision-making process. Some 70.4% of jobseekers said they visit a company's website before applying. Meanwhile, 45.1% first review an organisation's profile on the job board and 35.2% read employee testimonials.