Phenom Launches First Fraud Detection AI Agent to Protect Companies from Multimillion-Dollar Annual Candidate Fraud Crisis
PHILADELPHIA, September 23, 2025 – Phenom, an applied AI company that helps organizations hire faster, develop better and retain longer, launched an intelligent fraud detection agent that protects the integrity of the hiring process by identifying potential candidate deception. By 2028, one in four job candidates worldwide will be fake according to Gartner, costing U.S. employers millions. Phenom Fraud Detection Agent represents the industry’s first comprehensive AI solution capable of detecting resume fabrication, AI-assisted answers and imposter candidates in real time.
The breakthrough technology maintains hiring velocity while eliminating costly mis-hires, mitigates security risks, and protects brand reputation from increasingly sophisticated fraud schemes targeting remote and hybrid recruitment processes — all while keeping humans in the loop to make final decisions.
Addressing Critical Vulnerabilities Across Industries
Phenom’s fraud detection agent comes as organizations face mounting pressure to protect sensitive information and maintain regulatory compliance in industries like healthcare, financial services, retail, manufacturing, and hospitality and travel. From clinical workers accessing patient records and financial advisors managing retirement plans, to retail employees handling payment data and manufacturing personnel with access to proprietary processes, the integrity of each hire directly impacts company trust and organizational risk exposure.
Candidate fraud is not only an organizational issue but also a threat to national security. The U.S. Justice Department accused several North Korean citizens of fraudulently obtaining employment with U.S. companies as remote IT workers by using stolen and fake identities. The accused were allegedly hired by more than 100 U.S. companies, according to federal authorities.
Real-Time Fraud Detection During Live Interviews
The Fraud Detection Agent integrates seamlessly with Phenom’s Interview Intelligence solution, analyzing candidate responses in real-time during video interviews. The agent identifies multiple fraud indicators, including:
Identity and Location Verification — using facial recognition and voice matching technology, the agent ensures the same individual appears for video screenings, phone interviews, and final interviews, preventing imposter candidates from infiltrating the hiring process
AI-Generated Response Detection — flagging answers that exhibit characteristics of large language model usage, including unnatural pauses, overly formal language patterns, and structured responses that deviate from authentic human speech, suggesting questions on the fly to gather authentic candidate responses
Multi-modal Deployment — cross-referencing information from different media (e.g., resume, portfolio) submitted during the interview process to provide a holistic view of potential fraud
Comprehensive Post-Interview Analysis
Beyond real-time detection, the Fraud Detection Agent provides detailed post-interview evaluations that compile fraud indicators across the entire candidate journey. Recruiters and hiring managers receive comprehensive reports highlighting potential integrity warnings, allowing for informed decision-making while maintaining human oversight in all final determinations.
As companies revert to costly on-site interviews to avoid potential issues plaguing video, the Phenom Interview Intelligence solution is reinforcing the ability for continuing the use of video by not only detecting candidate fraud, but providing structured interview guides. Combined with AI indicators of bias and updated fit scores based on interview responses, this tool confronts company concerns about video interviews, and creates a better experience for interviewers and candidates.
“Organizations need to address the surge in sophisticated hiring fraud, particularly in industries where workers handle highly sensitive information or organizations that depend on remote work,” said Kumar Ananthanarayana, VP & GM, Product Management at Phenom. “Our Fraud Detection Agent is the answer. It goes beyond detecting resume embellishments, flagging AI-generated responses during interviews and identity switching throughout the hiring process.”
AI Day: Applied AI for HR
Get an in-depth understanding of the use cases for AI and automation in HR workflows, including Fraud Detection Agent. Watch AI Day live or on demand — register here for the October 1 global streaming event.
With Phenom, candidates find and choose the right job faster, employees develop their skills and evolve, recruiters become wildly productive, talent marketers engage with extreme efficiency, talent leaders optimize hiring and onboarding processes, managers build stronger-performing teams, HR aligns employee development with company goals, and HRIT easily integrates existing HR tech to create a holistic infrastructure.
About Phenom
Phenom is an applied AI company that helps organizations hire faster, develop better and retain longer. By uniquely combining proprietary industry-specific AI, agentic AI, automation and personalized experiences, its Intelligent Talent Experience platform helps companies fundamentally reshape their HR processes and strategies for scalable and sustainable transformation. Driven by a purpose to help a billion people find the right work, Phenom takes a holistic approach that unifies the entire talent journey, augmenting human capabilities and creating a symbiotic relationship between technology and talent.
Phenom has earned accolades including: Inc. 5000’s fastest-growing companies (6 consecutive years), Deloitte Technology's Fast 500 (4 consecutive years), 11 Brandon Hall ‘Excellence in Technology’ awards including Gold for ‘Best Advance in Generative AI for Business Impact,’ Business Intelligence Group’s Artificial Intelligence Excellence Awards (3 consecutive years), The Cloud Awards 2025/2024, The A.I. Awards 2024, and a regional Timmy Award for launching and optimizing HelpOneBillion.com (2020).
Headquartered in Greater Philadelphia, Phenom also has offices in India, Israel, the Netherlands, Germany and the United Kingdom.
For more information, please visit www.phenom.com. Connect with Phenom on LinkedIn, X, Facebook, YouTube, Instagram and TikTok.
