Andy Hellman, Chair Elect, Professional Background Screening Association discusses why identity rather than AI will reshape recruitment screening.
As we look ahead to 2027, one of the most significant challenges facing employers will be establishing not simply whether candidates possess the qualifications and experience they claim, but whether they are genuinely who they say they are.
For years, recruitment fraud largely involved exaggerated CVs, fabricated qualifications or misleading employment histories. While these remain concerns, artificial intelligence is introducing a more sophisticated threat: the creation of entirely synthetic identities. We are already seeing examples of individuals using fabricated identities to secure employment, including high-profile cases involving North Korean operatives infiltrating US technology companies. This raises a fundamental question for employers: how can they be certain that the person completing a background check is the same individual who attends an interview and ultimately starts work?
Identity verification becomes a priority
Traditionally, ID verification has been done by examining an ID document provided by a candidate. Often, this includes matching the person to the photo on the document as well as reviewing the document for known security features. The challenge is that the quality of generative AI has gotten so good that it has become much easier to create fake identity documents that often can pass these traditional ID verification methods. There is no reason to believe that this trend won’t continue.
As a result, I believe 2027 will see greater emphasis on identity assurance throughout the recruitment process, rather than treating verification as a single check. This challenge could also accelerate the adoption of digital credentials and identity wallets. The industry has talked about wallet-based digital credentials for several years now. A recruitment process where candidates can securely hold verified academic qualifications, employment histories and professional credentials in a digital wallet would help to eliminate the time and effort currently spent trying to contact universities or former employers. Instead, this information could potentially be authenticated almost immediately.
Beyond those obvious efficiencies, if these credentials were issued by the source as an NFT, and the candidates also held digital IDs in their wallet, we would be able to have a broader more secure confirmation of identity. This would all be based on blockchain technology, which would make it much more difficult to fake an identity. Rather than relying on a single check of an ID document, we would be able to assess identity based on a more solid, robust foundation using multiple data points.
Technology must work together
However, achieving this will require more than introducing new technology.
One of the industry’s current challenges is fragmentation. Individual verification solutions may perform exceptionally well, but they rarely provide a complete answer. A technology that successfully verifies 75% of candidates still leaves employers needing alternative processes for the remaining 25%. Without common standards and interoperability, organisations risk creating increasingly complicated screening procedures rather than simplifying them. For digital credentials to deliver meaningful benefits, systems must be capable of communicating securely and consistently across different providers, platforms and jurisdictions.
Global compliance remains a challenge
Alongside these technological developments, international regulatory complexity will remain a significant concern throughout 2027. Multinational employers already navigate differing requirements around consent, data protection and access to background information. In some circumstances, requirements across jurisdictions can conflict, creating difficult decisions for organisations seeking to operate consistent global screening programmes.
There is no universal solution. Employers must understand their legal obligations, assess risks and document their decisions while respecting candidates’ rights.
Looking ahead, I see the need to strengthen identity assurance driving adoption of interoperable digital credentials. It will be incumbent on our industry to also address the practical challenges of global regulatory compliance in the process. Ultimately, effective screening must balance security, privacy and operational efficiency. Greater collaboration between employers, screening providers and regulators will be essential to ensuring innovation strengthens recruitment without creating unnecessary barriers for legitimate candidates.
