These insights were shared during the Recruitment Smarts Live Show held on 13 May. In this session, Gemma Rubel, FinCrime Manager at Sonovate, joined Louise for a deep dive into the realities of financial crime in the recruitment sector.

The panel covered key risks, real-world examples, and how technology, culture and collaboration are helping businesses stay one step ahead.

 

What is financial crime, and how does it show up in recruitment finance?

Financial crime includes anti-money laundering and fraud, as well as broader threats like bribery, corruption and tax evasion.

Fraud is about gaining something unlawfully through deception. In 2023, UK Finance reported losses of over £1.17 billion due to fraud.

Money laundering disguises the origins of criminal funds. The National Crime Agency estimates £100 billion is laundered through the UK each year.

In recruitment, this often happens through fake or inflated invoices.

 

What types of fraud are most common?

External fraud is the biggest risk. Two key types are:

  • Fresh air invoicing: Invoices raised for work that never happened.
  • Client impersonation: Fraudsters hijack the identity of real businesses.

Recruitment is especially exposed due to its speed and scale. Strong due diligence and critical thinking are essential.

 

Real examples from the front line

One case involved a fake website and email posing as a global firm. Small details like the domain registration date gave it away.

Another case targeted a small business with little online presence. Red flags included a mismatch between the domain and company age, and a lack of employees.

Both were stopped early through careful checks.

 

The role of technology

Tech plays a huge part. We use tools that spot tampering, check metadata and analyse document structure.

Machine learning validates formatting and font styles to confirm authenticity. It helps us detect fraud faster and more accurately.

 

Balancing experience with compliance

Strong internal communication ensures everyone is part of the compliance process.

Ongoing, role-specific training empowers teams to act early. Saying no is sometimes necessary, but we always explain why.

Compliance should support the customer journey, not block it.

 

What recruitment businesses should look out for

Start with Companies House. Check:

  • Annual accounts
  • Administration status
  • Director history

New rules will improve transparency.

Check if the contact is visible online and use tools like Open Corporates for wider checks.

Use the acronym: ALWAYS BE ACTIVE

  • Approach: Is it sudden or unusual?
  • Consistency: Do details match across platforms?
  • Transparency: Is ownership clear?
  • Identity: Can you confirm who you’re speaking to?
  • Verification: Have you checked their history?
  • Expect the unexpected: Trust your instincts.

 

What makes Sonovate different?

Risk and compliance are part of our platform, not add-ons. Collaboration across tech, product and risk allows us to adapt quickly and stay ahead.

 

Looking ahead

Fraud is evolving. So are we. AI brings powerful tools to prevent crime, but also new threats like deepfakes and synthetic identities.

We must stay open, curious and work together to keep fighting financial crime.

Author: Gemma Rubel, FinCrime Manager at Sonovate