Fraudulent Credentials

Last Updated: 04/01/2024

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Overview

With the rapid growth of credentialing in the United States and globally, there have been significant increases in fraudulent credentialing practices. These practices include forged, altered, fake, or misrepresented credentials such as degree, diploma, certification, or other official documentation. Examples include:

  • Presenting a credential from a recognized institution that has been falsified.
  • Presenting a credential from an unrecognized institution (made-up institution or diploma mill).
  • Falsely claiming having earned a credential on a letter of application, resume, e-portfolio, and/or during an interview.
  • Falsely indicating the level or outcome of a credential.
  • Presenting an expired credential such as an expired industry certification or license.

Degrees especially constitute a growing problem. With many people unable to obtain a degree due to the cost of postsecondary education and competition for jobs spurring many people to misrepresent their qualifications, “diploma mills” are flourishing. A World Education Services report (2017) estimated there were more than 1,000 diploma mills in the U.S. and more than double that worldwide. The scale of this problem is large – bogus degrees are estimated at more than a billion-dollar industry globally.

Fraud in the credentialing marketplace can undermine the credibility of educational and professional institutions, lead to unqualified individuals being hired, and create an unfair advantage for those involved in the deception.

Issues

Four issues are key in the fraudulent credentialing arena:

  1. Credential Verification: Employers and institutions face challenges in verifying the authenticity of credentials presented by individuals. This can lead to hiring unqualified candidates or admitting students who lack the necessary skills or knowledge to postsecondary education programs.
  2. Impact on Trust and Reputation: Fraudulent credentials can undermine trust in educational systems and institutions, and the credibility of professionals in various fields.
  3. Legal and Ethical Concerns: There can be legal consequences for individuals that obtain fraudulent credentials and the organizations (higher education institutions, employers) that accept them. There are issues for licensing within professions, and fraudulence raises many ethical concerns (for example, honesty and fairness).
  4. Negative Economic Impacts: Organizations that employ unqualified or less qualified individuals can face financial loss. They may need to step up their investments in training programs for employees who lack the requisite skills. They may also face legal repercussion for employing unqualified individuals.

Solutions

To combat fraud, governmental entities, employers, higher education institutions, and others have implemented measures such as:

  • Improved Verification Processes: These processes require more rigorous verification procedures, including background checks, reference checks, and validation of credentials directly with issuing institutions.
  • Use of Technology: Digital credentials and blockchain technology are used to provide secure and tamper-proof verification of educational achievements.
  • Awareness: Increasing awareness among employers, educational institutions, and the general public about the prevalence of fraudulent credentials and the importance of verifying qualifications.
  • Collaboration and Interoperable Data Systems. Establishing networks and databases for sharing information about instances of credential fraud to prevent recurrence and improve detection.
  • Regulatory Measures: Some jurisdictions enact laws and regulations concerning the use of fraudulent credentials and hold individuals and organizations accountable for their misuse.

The effectiveness of these solutions to combat fraud varies:

  • Regulatory environments differ from nation to nation and among employers and credential providers; there are differences in the capacity to monitor and regulate fraud based on cultural, legal, and educational factors; and there is varied sophistication of verification processes.
  • The increasing globalization of education and the employment marketplace present many challenges in standardizing verification procedures especially across borders.
  • While advancements in technology and verification processes are making it more difficult to falsify credentials, perpetrators of fraud can adapt to these measures and find new ways to deceive.

Examples

Many states in the U.S. have established regulations to address the problem of diploma mills (an unaccredited or phony university that offers degrees, diplomas, or certificates—usually online).  These regulations typically aim to protect consumers from fraudulent educational institutions. States such as Washington, Oregon, Texas, Michigan, and Wyoming have enacted laws or regulations to address this issue. For example, Washington’s regulations address “False academic credentials—Unlawful issuance or use—Definitions—Penalties.” A "false academic credential" means a document that provides evidence or demonstrates completion of an academic or professional course of instruction beyond the secondary level that results in the attainment of an academic certificate, degree, or rank, and that is not issued by a person or entity that: (i) Is an entity accredited by an agency recognized as such by rule of the student achievement council or has the international equivalents of such accreditation; or (ii) is an entity authorized as a degree-granting institution by the student achievement council; or (iii) is an entity exempt from the requirements of authorization as a degree-granting institution by the student achievement council; or (iv) is an entity that has been granted a waiver by the student achievement council from the requirements of authorization by the council. Such documents include, but are not limited to, academic certificates, degrees, coursework, degree credits, transcripts, or certification of completion of a degree.

Fake Degrees and Fraudulent Credentials in Higher Education is a book published by Springer Link (2023) that describes credential fraud in higher education. Chapters address:

  • Fake degrees, credential fraud, and contract cheating (where students pay others to complete their assignments).
  • Admissions fraud and practices in Canadian higher education ("lazy hiring" practices) that can lead to professors without proper credentials securing jobs at postsecondary institutions).
  • A large diploma mill (Axact).
  • Technology and credential verification and how blockchain can be used to combat the proliferation of fake credentials.
  • Fraudulent athletic credentials in U.S. higher education.
  • Integrity concerns related to standardized English proficiency tests.

Credly by Pearson published How Digital Credentials can Prevent Fraudulent Certification and Qualifications, a white paper highlighting the impact of fraudulent certification and qualifications on issuing organizations, earners of credentials, and employers. The paper makes the case that digital credentials offer a secure and verifiable alternative. It also provides a Credential Fraud Prevention Checklist (page 8) that credential program providers can use to help reduce credential fraud and to preserve the integrity of their programs. Credly describes its platform product, Acclaim, which enables qualification and certification providers to create and issue digital credentials and badges backed by verifiable data. Enabling such a verification process may reduce the risk of credential fraud and make it easier for badge earners, educational institutions, and employers to check their authenticity.

Resources

Blonquist, A. (May 2022). What Are Diploma Mills & How Do They Lead To Resume Lies? https://www.goodhire.com/resources/articles/what-are-diploma-mills-do-they-lead-to-resume-lies/

Credly by Pearson. (2023)). How Digital Credentials can Prevent Fraudulent Certification and Qualifications. https://info.credly.com/hubfs/info.Credly%20PDF%20resources/Guides%20Whitepapers%20Infographics/White%20Papers/Final_Whitepaper_How%20Digital%20Credentials%20Can%20Prevent%20Fraudulent%20Certification%20and%20Qualifications_260423.pdf

Greenfield, N. M. (June 2023). The many – always deleterious – faces of credential fraud. In University and World News. https://www.universityworldnews.com/post.php?story=20230602093827424

Park, H., and Craddock, A. (December 12, 2017). Diploma Mills: 9 Strategies for Tackling One of Higher Education’s Most Wicked Problems. World Education News + Reviews. https://wenr.wes.org/2017/12/diploma-mills-9-strategies-for-tackling-one-of-higher-educations-most-wicked-problems

Washington State Legislature (effective 2012). False academic credentials—Unlawful issuance or use—Definitions—Penalties. RCW 60.070

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