Fraud Prevention Best Practices
Introduction
Certificate fraud is a growing issue for the education sector, threatening the reputation and integrity of institutions worldwide.
The trade in fake certificates is now a billion-dollar global industry experiencing a 2,100% growth between 2015 to 2022. This rise of fake qualifications is partly fuelled by a rise in demand for academic credentials from individuals trying to secure employment in a competitive jobs market.
Fraudsters are using increasingly sophisticated methods to carry out certificate fraud, which means education providers are having to implement fraud prevention and security measures in a way they might not have previously considered.
This blog will first look at the different types of certificate fraud and the impact it has on the education sector before setting out some of the fraud prevention best practices for certification.
Understanding certificate fraud
There are various types and methods of certificate fraud. These include:
Diploma mills – A diploma mill (sometimes called a degree mill) is a business that creates and sells fake certificates. Sometimes these are fake certificates imitating real institutions, and sometimes they are from fake universities designed to look genuine. Some people purchase these certificates knowing they are fake, while others are deceived into believing they are authentic.
Individual fraud – Certificate fraud doesn’t always occur from purchasing a fake certificate online, some individuals use editing software and colour printing to create high-quality counterfeit certificates or may alter their existing certificate to change the name, qualification or grade. The main problem with alteration fraud is it can be notoriously difficult to spot as it has occurred on a real document with original security features.
Fake Certificates – Fake certificates are sold from counterfeit sites everywhere. These sites often justify their existence by marketing the certificates as “novelty” items. However, due to the close replication of the real thing they are often used for fraudulent purposes. A quick search for “fake certificate” in Google returns over 900,000 search results, highlighting the prevalence of the issue,
These various types of certificate fraud have had a significant impact on the education sector in recent years, and the problem has regularly made headlines across the world.
For example, Canada will be introducing a two-year cap on student visas this autumn, in part aimed at clamping down on an explosion in the number of private post-secondary institutions offering dubious qualifications.
This is particularly prevalent in the provinces of British Columbia and Ontario, where large numbers of diploma mills have been accused of exploiting international students.
In some parts of Africa, diploma mills have become so prevalent that the Nigerian government has banned university certificates from some African nations altogether.
So, why does certificate fraud exist?
From an individual’s point of view, there are many motivations for wanting a fake certificate, ranging from needing specific qualifications to gain employment or promotion to immigration fraud.
The career opportunities created through holding a certificate are evidenced in a 2022 survey by the Bureau of Labour Statistics that found holding a certificate increases weekly earnings by as much as 35%.
Obtaining a fake certificate can be costly, but it is often much cheaper and easier than obtaining a genuine qualification.
Though much rarer, businesses might also engage in certificate fraud, for example, to make it seem like they have achieved certain standards to win new clients or contracts.
For the fraudsters, the motivation is simple – profit. The worldwide fake degree industry has grown from $1bn in 2015 to $22bn by 2022, an average of $3bn per year.
The growth of the diploma mill industry has had wide-ranging consequences for the education sector, eroding trust and confidence in genuine institutions and their qualifications.
Fake certificates undermine and diminish the value of real qualifications and the hard work that goes into them, both by the candidates who earn them and the professionals who create and deliver them.
A recent example of the impact of fake certificates can be found in the US, where three nursing schools in Florida were found to have sold more than 7,500 fake nursing diplomas.
When the scandal came to light, States across the country were forced to investigate and file criminal charges against nurses for fraudulently obtaining education credentials.
What is fraud prevention?
Fraud prevention is a process, or a set of activities implemented to prevent, deter, detect and resolve fraudulent incidents.
When it comes to fraud, prevention is always better than cure.
The best way to reduce the risk of being a victim of fraud is to stop fraud before it takes place, by ‘designing out’ any opportunities for fraudsters to take advantage of vulnerable systems or processes.
For universities and other education institutions this involves utilising a range of innovative technologies to secure certification document and processes.
In the education sector, Advanced Secure Technologies leads the way in fraud prevention best practice. We have set a global standard for both secure paper and secure electronic certification issuing, protecting hundreds of universities, awarding organisations, and professional bodies globally.
Here are our fraud prevention best practices for certification.
Fraud prevention best practices for certification
Fraudsters don’t give up easily. If their first attack fails, they will keep trying to find and exploit weaknesses. That’s why it’s important to apply a multi-layer security approach for your printed & digital credentials. Our technologies have multiple levels of security to deter these efforts and stop fraud.
It’s no good adding security features to certificates alone – the entire certification process must be secure, from authorised access, audit trails, how credentials are printed/distributed to how they are issued, viewed, shared and verified.
People are not afraid to fabricate their CVs. According to Intelligent, 9 in 10 hiring managers have caught applicants falsifying Information.
In the past, organisations have relied on lengthy, slow processes for third-party verification checks, however, by implementing an effective authentication process with multi-layer security businesses can mitigate the negative impacts of fraud. This involves verifying traditional printed security features, inspecting for spelling and grammatical errors, and utilising modern technologies like blockchain.
Advanced Secure Technologies’ secure certification solutions – Blockchain Paper® and Digital Certificates Solution deliver advanced verification of all document types to protect their long-term value and integrity.
All stakeholders must understand the risks of fraud and the reputational damage it can cause. Educating individuals on the signs of fake certificates and equipping them with the necessary tools to securely verify documents is the first step in preventing document fraud.
According to ECCTIS, 75% of university staff do not know how to spot a fake certificate. If university staff struggle to identify fraudulent documents, it becomes even more challenging for third parties or employers to do so. Furthermore, CIFAS reported that 75% of students are unaware that lying about a qualification is illegal. Therefore, it is essential to educate students about the serious consequences of degree fraud, counterfeiting, and document alteration on their future and the institution’s reputation.
Maintaining security is critical. Regular audits identify vulnerabilities before they can be exploited. Ensuring that all technologies are up to date with the latest security measures means you can stay ahead of evolving fraud tactics.
Our commitment to stopping fraud drives us to continuously review and update our products and services. We invest in research and development to enhance our security protocols and stay ahead of fraudsters.
Conclusion
As the demand for formal qualifications increases, so does the attractiveness of obtaining fake certification. As we have seen in this blog, the continued growth of the diploma mill industry and the persistence of fraudsters threaten the integrity of education and the value of genuine, accredited qualifications.
Advanced Secure Technologies has the solutions to stop certificate fraud with our world-leading, innovative technologies.
Contact us today to learn how we can help you stop certification fraud.
