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You are here: Home / Work Injury Prevention / Hiring Practices / Resume Lies, Fake References, and Hidden Risks: How to Spot Red Flags Before You Hire

Resume Lies, Fake References, and Hidden Risks: How to Spot Red Flags Before You Hire

July 7, 2025 By //  by Michael B. Stack

In today’s fast-paced hiring environment, employers are under tremendous pressure to fill roles quickly. Production deadlines loom, staff shortages squeeze operations, and the fear of losing business pushes companies to speed up their recruiting process.

But there’s a hidden danger lurking beneath the rush to hire: dishonesty on resumes and in the hiring process.

According to data, a staggering 29% of job applicants admit to putting false information on their resume, during interviews, or in references. Nearly one in three people applying to work for you might not be who they claim to be.

And while a little résumé fluff might seem harmless, the consequences can be anything but—especially when it comes to workers’ compensation costs and workplace safety.

Why Lies on Resumes Become Expensive Problems

At first glance, a minor resume embellishment might look like no big deal. Maybe someone exaggerated their responsibilities in a prior job or added a certification they were this close to finishing.

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“4-Step Sequence For Effective Employee Screening, Hiring, & Placement”

But when those lies hide deeper truths—like a history of injuries, physical limitations, substance abuse issues, or a pattern of dishonesty—they can quickly become major liabilities.

Consider these risks:

  • Underqualified hires placed in physically demanding jobs are far more likely to be injured, especially during the critical first weeks of employment.

  • Untruthful employees may conceal pre-existing injuries, leading to costly workers’ comp claims that your company could have avoided or reduced if you’d known their true medical history.

  • Fake references and job histories obscure problematic behaviors, such as repeated safety violations or terminations for cause.

  • Dishonest hires are more prone to actively disengage, cut corners, and disregard safety protocols—raising the risk of accidents and injuries.

In industries with high injury exposure—like manufacturing, logistics, construction, or hospitality—these issues aren’t minor. They’re a direct threat to your bottom line.

The Link Between Dishonesty and Workplace Injuries

The transcript reveals startling statistics about first-year employees:

  • 35% of workplace injuries happen during the first year on the job.

  • New employees are four to six times more likely to be injured in their first month than someone with a year of tenure.

  • Injuries in the first year result in claims two to four times more costly than injuries among long-term workers.

A dishonest hire—someone who lied about physical capabilities or prior injuries—is more likely to be among these statistics. They might accept a job that’s too physically demanding, hide pre-existing conditions, or skip safety procedures because they’re trying to cover up gaps in knowledge or ability.

How to Spot Red Flags Before You Hire

Thankfully, you don’t have to leave honesty to chance. A few proactive steps can dramatically reduce the risk of bringing the wrong person into your team:

1. Use Integrity Testing Early

One of the most powerful tools available is overt integrity testing—a structured assessment that asks direct questions about behaviors like:

  • Drug and alcohol use

  • Theft

  • Hostility

  • Dishonesty

  • Attendance problems

These tests work because of cognitive dissonance: people rationalize their behavior and often admit to past actions if they believe their reasons were justified. Even when they lie, well-designed integrity tests have built-in measures to detect inconsistencies.

Data shared in the training shows about 25% of applicants fail integrity tests, which aligns closely with the 29% figure for dishonest resumes. By using integrity testing as your first step, you can weed out nearly a quarter of risky candidates before spending time on interviews or background checks.

2. Verify References Thoroughly

Fake references are easier than ever to fabricate. Entire services exist to provide phony job titles, contact numbers, and even scripted responses to reference checks.

Instead of simply asking, “Would you rehire this person?” dig deeper:

  • Ask specific questions about job duties and daily tasks.

  • Confirm employment dates and exact titles.

  • Request details that only a real supervisor or coworker would know.

  • Call official company numbers rather than personal cell phones listed on resumes.

Genuine references will be able—and willing—to provide context and real insights.

3. Confirm Credentials and Certifications

Especially in roles with physical or technical requirements, verify:

  • Degrees and certifications

  • Licenses (such as forklift operation, welding certifications, or medical licenses)

  • Safety training completions

Don’t assume a line on a resume means the person is truly qualified.

4. Use Conditional Offers with Post-Offer Testing

After making a conditional offer of employment, conduct physical capability testing tied to the essential functions of the job. This helps ensure:

  • The candidate can safely perform job duties.

  • You document any pre-existing conditions before work begins.

  • You avoid future claims that your company caused a condition the employee already had.

Post-offer testing provides an objective, defensible basis for your hiring decision and helps prevent injuries by matching physical ability to job demands.

5. Look for Behavioral Clues in Interviews

During interviews, watch for:

  • Evasive or vague answers about past jobs.

  • Gaps in employment the candidate struggles to explain.

  • Overly rehearsed responses that don’t connect to real experiences.

Behavioral interviewing techniques can reveal inconsistencies and expose red flags.

FREE DOWNLOAD: “4-Step Sequence For Effective Employee Screening, Hiring, & Placement”

Honesty Isn’t Optional—It’s Essential for Safety

Injury prevention doesn’t start in the warehouse or on the production floor. It starts in the hiring process. If you don’t screen for honesty and qualifications, you’re rolling the dice—and potentially inviting costly workers’ comp claims, lost productivity, and safety risks into your organization.

The good news? Employers who integrate integrity testing, thorough verification, and post-offer testing dramatically reduce the likelihood of hiring the wrong person.

A little extra work upfront can save you tens of thousands of dollars—and countless headaches—later on.

When it comes to hiring, the truth isn’t just preferable—it’s absolutely essential.

Michael Stack, CEO of Amaxx LLC, is an expert in workers’ compensation cost containment systems and provides education, training, and consulting to help employers reduce their workers’ compensation costs by 20% to 50%. He is co-author of the #1 selling comprehensive training guide “Your Ultimate Guide to Mastering Workers’ Comp Costs: Reduce Costs 20% to 50%.” Stack is the creator of Injury Management Results (IMR) software and founder of Amaxx Workers’ Comp Training Center. WC Mastery Training teaching injury management best practices such as return to work, communication, claims best practices, medical management, and working with vendors. IMR software simplifies the implementation of these best practices for employers and ties results to a Critical Metrics Dashboard.

Contact: mstack@reduceyourworkerscomp.com.

Workers’ Comp Roundup Blog: http://blog.reduceyourworkerscomp.com/

Injury Management Results (IMR) Software: https://imrsoftware.com/

©2025 Amaxx LLC. All rights reserved under International Copyright Law.

Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker, attorney, or qualified professional.

FREE DOWNLOAD: “4-Step Sequence For Effective Employee Screening, Hiring, & Placement”

Filed Under: Hiring Practices

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