Why Hiring Fraud Has Become a Know Your Employee Security Issue

NewsData.io · United States · Sep 10, 2026

Hiring fraud — including fake applicants, synthetic identities, and North Korean IT workers using stolen U.S. identities — has turned the recruiting process into a cybersecurity attack surface, according to a Forbes Technology Council piece by 1Kosmos cofounder Michael Engle. The article cites KnowBe4's 2024 case of unknowingly hiring a fraudulent worker who loaded malware post-onboarding as a real-world example of the risk. Engle argues that traditional one-time identity verification at onboarding is insufficient, and calls for continuous 'Know Your Employee' frameworks that link identity proofing across the full employee lifecycle — from applicant tracking through help desk interactions. For staffing firms and recruiters, the piece underscores growing client pressure to implement more rigorous candidate identity verification, particularly for remote and contractor placements.