Fake job seekers are flooding U.S. companies that are hiring for remote positions, tech CEOs say
When voice authentication startup Pindrop Security posted a recent job opening, one candidate stood out from hundreds of others.
The applicant, a Russian coder named Ivan, seemed to have all the right qualifications for the senior engineering role. When he was interviewed over video last month, however, Pindrop's recruiter noticed that Ivan's facial expressions were slightly out of sync with his words.
That's because the candidate, whom the firm has since dubbed 'Ivan X,' was a scammer using deepfake software and other generative AI tools in a bid to get hired by the tech company, said Pindrop CEO and co-founder Vijay Balasubramaniyan.
'Gen AI has blurred the line between what it is to be human and what it means to be machine,' Balasubramaniyan said. 'What we're seeing is that individuals are using these fake identities and fake faces and fake voices to secure employment, even sometimes going so far as doing a face swap with another individual who shows up for the job.'
Companies have long fought off attacks from hackers hoping to exploit vulnerabilities in their software, employees or vendors. Now, another threat has emerged: Job candidates who aren't who they say they are, wielding AI tools to fabricate photo IDs, generate employment histories and provide answers during interviews.
The rise of AI-generated profiles means that by 2028 globally 1 in 4 job candidates will be fake, according to research and advisory firm Gartner.
The risk to a company from bringing on a fake job seeker can vary, depending on the person's intentions. Once hired, the impostor can install malware to demand ransom from a company, or steal its customer data, trade secrets or funds, according to Balasubramaniyan. In many cases, the deceitful employees are simply collecting a salary that they wouldn't otherwise be able to, he said.
'Massive' increase
Cybersecurity and cryptocurrency firms have seen a recent surge in fake job seekers, industry experts told CNBC. As the companies are often hiring for remote roles, they present valuable targets for bad actors, these people said.
Ben Sesser, the CEO of BrightHire, said he first heard of the issue a year ago and that the number of fraudulent job candidates has 'ramped up massively' this year. His company helps more than 300 corporate clients in finance, tech and health care assess prospective employees in video interviews.
'Humans are generally the weak link in cybersecurity, and the hiring process is an inherently human process with a lot of hand-offs and a lot of different people involved,' Sesser said. 'It's become a weak point that folks are trying to expose.'
But the issue isn't confined to the tech industry. More than 300 U.S. firms inadvertently hired impostors with ties to North Korea for IT work, including a major national television network, a defense manufacturer, an automaker, and other Fortune 500 companies, the Justice Department alleged in May.
The workers used stolen American identities to apply for remote jobs and deployed remote networks and other techniques to mask their true locations, the DOJ said. They ultimately sent millions of dollars in wages to North Korea to help fund the nation's weapons program, the Justice Department alleged.
That case, involving a ring of alleged enablers including an American citizen, exposed a small part of what U.S. authorities have said is a sprawling overseas network of thousands of IT workers with North Korean ties. The DOJ has since filed more cases involving North Korean IT workers.
A growth industry
Fake job seekers aren't letting up, if the experience of Lili Infante, founder and chief executive of CAT Labs, is any indication. Her Florida-based startup sits at the intersection of cybersecurity and cryptocurrency, making it especially alluring to bad actors.
'Every time we list a job posting, we get 100 North Korean spies applying to it,' Infante said. 'When you look at their resumes, they look amazing; they use all the keywords for what we're looking for.'
Infante said her firm leans on an identity-verification company to weed out fake candidates, part of an emerging sector that includes firms such as iDenfy, Jumio and Socure.
The fake employee industry has broadened beyond North Koreans in recent years to include criminal groups located in Russia, China, Malaysia and South Korea, according to Roger Grimes, a veteran computer security consultant.
Ironically, some of these fraudulent workers would be considered top performers at most companies, he said.
'Sometimes they'll do the role poorly, and then sometimes they perform it so well that I've actually had a few people tell me they were sorry they had to let them go,' Grimes said.
His employer, the cybersecurity firm KnowBe4, said in October that it inadvertently hired a North Korean software engineer.
The worker used AI to alter a stock photo, combined with a valid but stolen U.S. identity, and got through background checks, including four video interviews, the firm said. He was only discovered after the company found suspicious activity coming from his account.
Fighting deepfakes
Despite the DOJ case and a few other publicized incidents, hiring managers at most companies are generally unaware of the risks of fake job candidates, according to BrightHire's Sesser.
'They're responsible for talent strategy and other important things, but being on the front lines of security has historically not been one of them,' he said. 'Folks think they're not experiencing it, but I think it's probably more likely that they're just not realizing that it's going on.'
As the quality of deepfake technology improves, the issue will be harder to avoid, Sesser said.
As for 'Ivan X,' Pindrop's Balasubramaniyan said the startup used a new video authentication program it created to confirm he was a deepfake fraud.
While Ivan claimed to be located in western Ukraine, his IP address indicated he was actually from thousands of miles to the east, in a possible Russian military facility near the North Korean border, the company said.
Pindrop, backed by Andreessen Horowitz and Citi Ventures, was founded more than a decade ago to detect fraud in voice interactions, but may soon pivot to video authentication. Clients include some of the biggest U.S. banks, insurers and health companies.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mirror
an hour ago
- Daily Mirror
Drivers floored to discover meaning behind name of Elon Musk's Tesla Motors
Tesla is one of the most famous car companies in the world - but the name has a very special meaning few people know about thanks to Elon Musk. Here's what you need to know Tesla, the American trailblazer for electric vehicles and clean energy, has been talked about a lot this year. Established in 2003 as Tesla Motors by Martin Eberhard and Marc Tarpenning, it wasn't long before the charismatic Elon Musk powered through the initial investment phase in February 2004, taking charge as chairman and eventually climbing to the role of CEO in 2008. While Tesla's innovative streak is well known, there's still a veil of intrigue surrounding the origins of its name. It was recently brought up on social media when someone posed the question: "What is the meaning of the word 'Tesla' in a business context? How did the company get its name?" The query sparked a flurry of speculation but, unknown to many, the company pays homage to Nikola Tesla, an electrical engineer and illustrious inventor whose accomplishments were overshadowed during his time. Musk's decision to honour him with the company name keeps Tesla's spirit alive, contributing to his belated recognition. An article by Seattle Times highlighted: "In the age of Edison, Westinghouse, Marconi and J.P. Morgan, Tesla was a giant of innovation because of his contributions in the fields of electricity, radio and robotics." Many are now recognising that Tesla is finally receiving the recognition he deserves, largely attributed to Elon Musk. Marc Seifer, author of Wizard: The Life and Times of Nikola Tesla, stated: "It's a sociological fact that Elon Musk took the Tesla name and launched Nikola Tesla into the stratosphere. Tesla's risen to the surface again, and now he's getting his due." Despite gracing the cover of Time magazine in 1931, the inventor died impoverished in 1943 after years spent on underfunded projects. Today, some of Tesla's most significant inventions are gaining renewed attention. In 1884, Tesla arrived in New York with hopes that Thomas Edison would back his alternating-current (AC) motor and electrical system. The Seattle Times remarked: "But Edison was investing in highly inefficient direct-current (DC) systems, and he had Tesla re-engineer a DC power plant on Pearl Street in Lower Manhattan. The men soon parted company over a financial dispute. "George Westinghouse provided funding for Tesla's AC induction motors and devices, which soon came to dominate manufacturing and urban life. Unlike the DC motors of the time, Tesla's motors didn't create sparks or require expensive permanent magnets to operate. "Instead, they used a rotating magnetic field that used power more efficiently in a basic design that is still the core of most electric motors." In 1896, Tesla's creation of the power-generating system at Niagara Falls marked a massive leap for his AC system. Soon after cities started to adopt AC power following Westinghouse's victory over Edison, the staunch DC advocate, in a rivalry depicted in The Current War with Benedict Cumberbatch portraying Edison. Besides, Tesla was pivotal in evolving radio technology, experimenting from 1892 to 1894 and famously describing the radio as an "oscillator" that transformed electricity into high-frequency radio waves for transmitting energy, sound and further communications across vast distances. Envisioning a global transmission network, Tesla conducted promising tests in Colorado in 1899 and then attempted to build a so-called "World System" in Shoreham, Long Island, aiming for the wireless powering of vehicles, ships and planes. Just like smartphones fetch data, sound and visuals from thin air today, Tesla imagined universal accessibility to electricity, yet financial constraints and the cessation of support from financier J.P. Morgan Jr. thwarted his revolutionary aspirations. The Seattle Times remarked on the bittersweet legacy of a brilliant mind, stating: "His achievements remained incomplete. He created the AC energy system and the basics of radio communication and robotics but wasn't able to bring them all to fruition. His life shows that even for a brilliant inventor, innovation doesn't happen in a vacuum. It requires a broad spectrum of talents and skills. And lots of capital."
The Herald Scotland
2 hours ago
- The Herald Scotland
What Ibrox chairman Andrew Cavenagh said as he addressed Rangers fans
On the day that John Gilligan, Dave King and Paul Murray were finally elected to the board 10 years ago – a move which successfully ousted a reviled hierarchy which comprised Mike Ashley associates Derek Llambias and Barry Leach – at an Extraordinary General Meeting there were jubilant scenes down Govan way. One Bear even turned up wearing a rat mask and holding a sign which read, 'Glasgow Airport is five miles. Rataway. Taxi for Ashley, Llambias, Leach.' There were no such unruly scenes, no animosity, at an EGM in the Doubletree by Hilton hotel in Glasgow city centre this morning as an important staging post in the successful £75m takeover by a consortium which comprises American health insurance billionaire Andrew Cavenagh and 49ers Enterprises was reached. The duo's proposed £20m investment into Rangers was dependent on one ordinary resolution and three special resolutions being accepted by shareholders. It was all a formality. Still, with new chairman Cavenagh and vice-chairman Paraag Marathe in attendance and making themselves available to shareholders to answer questions there was a bumper turnout. The decision by the likes of John Bennett, Dave King, Douglas Park, and Barry Scott to sell part or all of their stakes to the Cavenagh-49ers Enterprises alliance met, after another wretched, trophyless season with the complete approval of the vast majority of supporters. Hopes are high things will be different on and off the park moving forward. The gathering proved to be a bit of a love-in. Chief executive Patrick Stewart, former chairman Fraser Thornton, vice-chairman Marathe, and chairman Cavenagh received a warm ovation from several hundred supporters when they took to the stage. Cavenagh stood and started with a quip about why he wasn't sitting as he spoke. "I figured it wasn't the right way to start this relationship with a low block," he said. He added, "Last October I got a phone call and I will never forget it. It changed my life. Would you and your group have an interest in investing in Rangers. I said, 'Absolutely'. "The breadth and depth of the passion is the number one thing I love about this club. No 2 is Ibrox. I think of it as our castle. It gives us a competitive advantage. It is a magical place to play. "Let me be clear about our ambitions. Our ambition is to win leagues and cups and do it in a financially self-sustaining manner. It is our goal to make sure that the club is in that position over the next 10 years. It is incredibly important that we continue to attract the best talent." Marathe said, "Our philosophy is pretty simple and it is - is about making data-based decisions. It has worked for us in different organisations and I believe it will work for us here." Rangers fan ad former MP Sir Brian Donohoe was , "I welcome the input of the 49ers consortium. I am a long-term shareholder of the club. I would ask that you would give the 49 per cent some respect. I still can't see where the 49 per cent of the shareholders are being represented in the Articles of Association." Cavenagh said, "There are so many supporters shareholders in the club and we think that is fantastic. We really value that. There are a couple of different ways the minority are protected. "In UK law there are certain things that can't happen unless 75 per cent agree. George Taylor and John Halstead will make sure the minority shareholders are represented. Our focus is on making sure the club has our resources." Resolution One dealt with the allotment of shares and effectively enables Cavanagh and the 49ers Enterprises to invest fresh capital in return for shares. Resolution Three and Resolution Four, meanwhile, concerned the move to a Limited Company and the new Articles of Association. Cavenagh confirmed that it is the new Rangers hierarchy's intention to continue to hold an AGM when they become a PLC and to continue to consult with the Rangers Fan Advisory Board. A fan asked if stadium expansion was something that would be considered. Marathe said, 'Right now our first priority is improving us on the pitch, that is the urgent priority. But absolutely. We have a tremendous supporter base. We have already been looking at different things from an expansion perspective." One fan then asked, "What players are we going to get? Are we going to get someone who can pass the ball to our centre forward." Marathe said, '"It is best for all of us that we keep our efforts private. Our goal is to make the club as successful as possible. That doesn't necessarily mean throwing money at it, it means being smarter, being more wise and building a plan for sustained success. We hope there are a lot of trophies and cups for us within our lifetime" Cavenagh stated, "This is not and will never be about me or about Paraag. Football decisions will be made by football people." One fan asked if the new board realised that Rangers would be under pressure to perform from their first game of the season. Marathe said, "Every manger is under pressure to win. We all feel it, Russell [manager Martin] feels it. There is no such thing as a honeymoon period in professional sports." Asked how much money Martin would have to spend on players this summer, Cavenagh said, "Echoing what Paraag said earlier, we will be as transparent as we can be. In other areas, we are going to be really opaque and this is one of those areas." One fan asked how Cavenagh and 49ers Enterprises planned to monetise their investment. Cavenagh said, "I will give you a really blunt answer - we do not have an exit plan, we have a growth plan. We will figure out the exit plan once we have achieved the growth plan." One fan accused Rangers of being weak in their dealings with the SFA and referenced the fine the club were hit with for John Brown's comments on RTV about a disallowed goal at Easter Road last season. "You make a good point," said chief executive Stewart. "We have made two pretty forceful statements. We do believe what the SFA did is inconsistent. But we do need to work with the SFA. We will fight the fight when we think there is a clear case. We will stand our ground when it is justified." It was revealed that Marathe and Cavenagh will meet with the SPFL tomorrow and the latter said, "Working together with the other clubs is important."
Daily Mirror
2 hours ago
- Daily Mirror
US billionaire and Donald Trump's pal Woody Johnson to buy Crystal Palace stake
Woody Johnson is set to buy a 43 percent stake in FA Cup winners Crystal Palace, with the US billionaire a close friend of Donald Trump and already in control of the NFL's New York Jets New York Jets owner Woody Johnson is set to buy a stake in Crystal Palace after afreeing a £190million deal with John Textor. Textor holds a 43 percent stake in the Eagles, though that has caused them problems with UEFA. The American also controls Ligue 1 side Lyon, which has caused Palace to fall foul of UEFA's rules around multi-club ownership. Palace won the FA Cup this year and so qualified for the Europa League. Lyon also booked their place in that competition by finishing sixth in the French top-flight. Textor has since been trying to sell the stake in the Premier League club and now appears to have found a buyer. That comes in the form of the 78-year-old heir of the Johnson family that founded the Johnson & Johnson pharmaceutical company. The deal is estimated to be worth £190m. It is still subject to Premier League approval, though an agreement has been reached between the two sides. Palace fans are set to welcome a fresh investor, though his history at the New York Jets may cause some concern. Johnson bought the Jets in 2000 but they have endured an awful time since then. They have not featured in the NFL's play-offs for 14 years, double the length of any other drought in the league. The Jets are currently on their eighth head coach since Johnson took control of the team. They finished with a 5-12 record last season, with only the New England Patriots having a worse record in their division. Their campaign was marred by frequent reports of a split between Johnson and star quarterback Aaron Rodgers, who was released at the end of the season. Aside from his time at the Jets, Johnson may be a familiar face to Premier League fans. He is understood to have made a £2billion bid to buy Chelsea from Roman Abramovich back in 2022 but missed out to Todd Boehly. Johnson also spent four years as the United States' ambassador to the United Kingdom during Donald Trump's first spell as president. He has known Trump for more than 30 years and acted as one of the Republican's six finance vice chairmen, responsible for an effort to raise $1billion on behalf of the first campaign. He then donated $1million to Trump's most recent bid for the presidency. According to BBC Sport, Johnson indicated he can transfer the funds to buy Palace quickly, which is believed to have been a crucial factor in why his offer moved to the front of the queue. The Bloomberg Billionaires Index estimated Johnson's wealth at about £6.8bn in 2024. UEFA is expected to make a decision on whether Palace can participate in the Europa League by the end of June.
