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Ghost jobs and fake listings: why background checks matter more than ever

Neil Rose
Author Neil Rose
Published:
Reading TIme: 7 mins
Ghost jobs and fake listings: why background checks matter more than ever
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The hiring landscape is changing fast and not always for the better. In recent months, the rise of so-called ‘ghost jobs’ has left job seekers feeling frustrated, confused and sceptical about the hiring process. These fake listings, often posted with no intention to hire, are becoming increasingly common with a Resume Builder survey revealing that 40% of companies admit to posting jobs that don't actually exist.

In this environment, the integrity of recruitment processes is more important than ever. For employers genuinely looking to hire, the need to protect their business from fraudulent candidates and hiring risks is paramount. And for candidates being able to trust that an opportunity is legitimate is essential.

At Referoo, we believe background checks aren't just a compliance box to tick; they're a key safeguard against the blurred lines of modern recruitment.

What are ghost jobs and why do they exist?

Ghost jobs refer to job ads posted by companies without any intention of hiring. These listings can stay live for months or be repeatedly reposted to inflate perceived company growth, collect resumes ‘just in case’ or boost internal morale by creating the illusion that help is on the way.

The ABC reported that candidates are wasting countless hours applying for roles they will never hear back from. The Guardian found that nearly half of all companies post ghost jobs, contributing to false hope for candidates and skewed labour market statistics.

But the problem doesn't stop with employers misleading candidates. Ghost jobs also open the door to opportunistic or misrepresenting applicants and that’s where effective background screening becomes crucial.

Productivity theatre and digital fakery: How employers and applicants are both affected

"Ghost jobs are a symptom of a deeper trust issue in recruitment," says Neil Rose, CEO of Referoo. "They highlight how important it is for both sides of the hiring equation to prioritise authenticity."

The Sydney Morning Herald refers to the trend as ‘productivity theatre’, efforts to look busy or proactive when there’s no real intention to take action. The same article highlights the risk this trend poses for genuine hiring teams. It’s harder than ever to cut through the noise and find high-quality candidates who are available and genuinely interested in the role.

For companies advertising real roles, it’s not just about standing out from the crowd. It’s about knowing the person you hire is who they claim to be. Background checks provide that vital layer of verification.

The Candidate’s Dilemma: Wasted Time, Lost Trust and Resume Mining

For job seekers, ghost jobs erode confidence in the job market. Candidates may apply for dozens of roles, tailoring their CVs and cover letters only to receive silence in return. This frustration builds mistrust.

Neil Rose notes, "When candidates are second-guessing whether a job ad is real, that scepticism trickles down into the interview process and beyond. It impacts brand perception."

Resume mining, collecting CVs with no current role available, is one of the key motivations for ghost job postings. But holding onto outdated or unverified candidate information introduces risks. That’s why background checks like the Employment History Check, Professional Qualification Check and Academic Achievement Check are critical in separating outdated or false claims from verifiable credentials.

Why background checks are the antidote to recruitment misdirection

So how can employers restore trust and reduce risk in a sea of ghost jobs and unreliable candidates?

Background checks provide the verification layer that proves someone is who they say they are, has the experience they claim and meets the requirements of the role. In an era where digital fakery is increasingly sophisticated, this isn't just good practice; it's essential.

Some of the most relevant checks that address ghost-job-era hiring risks include:

  • ID Check and Right to Work Checks (Aus, NZ, UK): Ensure the candidate is legally allowed to work and confirm their identity.
  • Employment Check/Work History Check: Verify that past roles, responsibilities and timelines match what’s listed.
  • Academic Achievement & Professional Qualification Checks: Confirm that degrees or certifications are legitimate and earned.
  • Social Media & Adverse Media Checks: Identify reputational red flags or contradictions in public-facing behaviour.
  • Criminal Record Checks (AFP, DBS, NCCHC, MOJ): Help protect workplace safety and ensure alignment with role requirements.

"A great hire starts with great information," says Rose. "Background checks help you move from assumptions to certainty."

Beyond the job ad: Building hiring integrity through verification and transparency

If ghost jobs are blurring the lines of the job market, background checks can help draw them again. Employers that take verification seriously build reputations as fair, trustworthy and serious hiring organisations.

Verifying information upfront also shortens hiring timelines, reduces churn and improves compliance across industries, particularly in regulated roles. Checks like the Working with Children Check, Directorship/Conflict of Interest Check and Global Sanctions Check are essential in sectors like healthcare, finance and education.

It also enables smarter hiring decisions. In research conducted by Tapt, 1 in 3 people revealed they’ve lied during their job search. With proper checks, those red flags surface before the offer goes out.

Cutting through the noise of fake job listings with smart screening

Ghost jobs aren’t just an annoyance. They’re a symptom of growing distrust in hiring and they damage both candidate experiences and employer reputations.

As companies seek to stand out for the right reasons, there’s an opportunity to lead with integrity. Background checks offer a simple, scalable way to bring truth back into recruitment.

"Hiring is about building relationships," says Neil Rose. "And relationships are built on trust. Background checks help you start that relationship on solid ground."