SMEs must step up in fight against degree fraud

Degree fraud is still more common than many believe and all employers - especially small businesses - should ensure they verify the qualifications of any graduates they hire

In 2018, the BBC reported that more than 3,000 UK nationals had purchased fraudulent degrees from a single website in Pakistan - a finding that really highlights the scale of degree fraud in this country.1

It is believed that incidences of degree fraud are becoming more and more prevalent. Meanwhile surveys have found that around a third of people admit to embellishing their CV.2

Given this reality, it is important that employers protect themselves, not only in an attempt to negate consequences for themselves (such as additional recruitment costs when they have to re-hire), but also to help ensure that honest graduates are not being cheated out of good graduate jobs.

However, the ISE Pulse Survey 2020 found that only 35% of firms verify qualifications with the institutions or awarding bodies that awarded them.3

The vast majority of the firms surveyed by Prospects Hedd admitted to being aware of its degree verification services, with 74% having used them previously. So it is surprising, given the risks involved, that according to the latest Hedd degree fraud survey as many as one-fifth of businesses failed to check any graduate hires for degree fraud.4

The top reasons they gave for not verifying degrees were:

• a degree is not an essential requirement for the role (33.3%)
• there's no need (20%)
• we trust the candidate (11.1%).

SMEs face the greatest risk

SMEs (25%) were almost twice as likely as larger businesses (13%) to report that they didn't verify the qualifications of any graduate hires. Within this group of employers, the smallest SMEs were significantly more likely to report that they failed to perform such checks.

Number of employees,Percentage
1-9 employees,59
10-49 employees,15
50-99 employees,15
100-249 employees,12

SMEs must do better to protect themselves, as the survey results also illustrate that they are more likely than larger companies to encounter dishonest candidates. Of the 49% of employers reporting that they had previously been a victim of degree fraud, 62% were SMEs.

The smallest of SMEs - those least likely to verify qualifications - were also more likely than others to report that they had previously been a victim of degree fraud. For instance, 18% of SMEs employing 1 to 9 people admitted to this compared with just 8% of those employing 100 to 249 people.

Number of employees,Percentage
1-9 employees,34
10-49 employees,30
50-99 employees,21
100-249 employees,15

Too few cases are reported

Considering that the smallest of SMEs were more likely to report that their organisations may be at risk of degree fraud, it is concerning that they take fewer precautions to protect themselves.

Perhaps the most alarming finding of the survey is that only 45% of participants that had previously been a victim of degree fraud reported these instances to the relevant authorities. This suggests that there are plenty of instances of degree fraud that go undetected, meaning that it is likely that levels of degree fraud within the UK are actually higher than suggested. 

Nevertheless, regardless of the numbers, the only way for employers to ensure that they are protected from degree fraud is to be more diligent and check all credentials provided as evidence of qualification. Whether or not a degree is an essential requirement for the role in question is irrelevant. The fact remains that for every case of degree fraud that goes undetected, an honest graduate is cheated out of a role.  

Notes

1. 'Staggering' trade in fake degrees revealed, BBC, 2018.
2. Advice and guidance on degree fraud: A toolkit for higher education providers, Prospects Hedd, 2017.
3. ISE Pulse Survey 2020, Institute of Student Employers, 2020.
4. 51% take such precautions with 80-100% of graduate hires.

Written by

Micha-Shannon Smith

Assistant information analyst

Prospects