{"id":26692,"date":"2026-06-29T20:05:11","date_gmt":"2026-06-29T20:05:11","guid":{"rendered":"https:\/\/procomservices.com\/insights\/stop-debating-whether-it-is-fraud-use-a-cost-continuum-to-align-your-stakeholders\/"},"modified":"2026-07-03T20:56:17","modified_gmt":"2026-07-03T20:56:17","slug":"stop-debating-whether-it-is-fraud-use-a-cost-continuum-to-align-your-stakeholders","status":"publish","type":"post","link":"https:\/\/procomservices.com\/en-ca\/insights\/stop-debating-whether-it-is-fraud-use-a-cost-continuum-to-align-your-stakeholders\/","title":{"rendered":"Stop debating whether it is fraud \u2014 use a cost continuum to align your stakeholders"},"content":{"rendered":"\t\t\n        <style>\n\t\t\tp.wp-block-paragraph:not([class^=\"has-\"]):not([class*=\" has-\"]):not(.no-margin) {\n\t\t\t\tmargin-bottom: 15px !important;\n\t\t\t}\n\t\t\t.toc-wrapper {\n\t\t\t\tdisplay: none;\n\t\t\t}\n\t\t\tp.wp-block-paragraph {\n\t\t\t\tline-height: normal;\n\t\t\t}\n\n\t\t\t.content-single .list-cols .left-col>p.wp-block-paragraph:first-child {\n\t\t\t\tfont-weight: bolder;\n\t\t\t\tmargin-bottom: 0 !important;\n\t\t\t\tcolor: #ffffff;\n\t\t\t\tfont-size: 2.3rem;\n\t\t\t}\n\n\t\t\t.content-single .list-cols .left-col>p.wp-block-paragraph:last-child {\n\t\t\t\tfont-weight: bolder;\n\t\t\t\tfont-size: 40px;\n\t\t\t\tline-height: 0.8;\n\t\t\t\tcolor: #ffffff;\n\t\t\t\tmargin-bottom: 0 !important;\n\t\t\t}\n\n\t\t\t.content-single .list-cols .left-col {\n\t\t\t\tborder-right: 2px solid #000;\n\t\t\t}\n\n\t\t\t.content-single .list-cols .right-col {\n\t\t\t\tpadding-top: 15px;\n\t\t\t\tpadding-left: 15px;\n\t\t\t\tpadding-right: 15px;\n\t\t\t\tpadding-bottom: 15px;\n\t\t\t\tbox-shadow: 0 6px 7px -7px rgba(0, 0, 0, 0.3);\n\t\t\t}\n\n\t\t\t.content-single .list-cols .right-col p.wp-block-paragraph,\n\t\t\t.content-single .list-cols .right-col h3 {\n\t\t\t\tmargin-bottom: 0 !important;\n\t\t\t}\n\n\t\t\t.content-single .list-cols .right-col h3 {\n\t\t\t\tfont-size: 2rem;\n\t\t\t\tfont-weight: 500;\n\t\t\t\tline-height: normal;\n\t\t\t}\n\n\t\t\t.content-single .list-cols .right-col h3+h4 {\n\t\t\t\tfont-weight: 300;\n\t\t\t\tmargin-bottom: 6px;\n\t\t\t}\n\n\t\t\t.content-single .list-cols .right-col p.wp-block-paragraph:last-child {\n\t\t\t\tline-height: normal;\n\t\t\t}\n\n\t\t\t.content-single .list-cols .right-col ul li {\n\t\t\t\tpadding-left: 0;\n\t\t\t\tmargin-bottom: 0;\n\t\t\t}\n\t\t\t\n\t\t\t.content-single .dst-list.no-marg-b {\n\t\t\t\tmargin-bottom: 0;\n\t\t\t}\n\n\t\t\t.content-single .dst-list.no-pad-t-b .dst-list__item {\n\t\t\t\tpadding-top: 0 !important;\n\t\t\t\tpadding-bottom: 0 !important;\n\t\t\t}\n\n\t\t\t.content-single .dst-list.no-marg-b .dst-list__item {\n\t\t\t\tmargin-bottom: 0;\n\t\t\t}\n\t\t\t\n\t\t\t.content-single .dst-list.no-marg-t {\n\t\t\t\tmargin-top: 0;\n\t\t\t}\n\n\t\t\t.content-single .dst-list.no-bullet .dst-list__item .dst-list__content::before {\n\t\t\t\tdisplay: none;\n\t\t\t}\n\n\t\t\t.content-single .dst-list.no-pad-l-inner .dst-list__item .dst-list__content {\n\t\t\t\tpadding-left: 0;\n\t\t\t}\n\n\t\t\t.content-single .dst-list:not(.no-pad-l) .dst-list__item {\n\t\t\t\tpadding-top: 5px;\n\t\t\t\tpadding-bottom: 5px;\n\t\t\t\tpadding-left: 4rem;\n\t\t\t\tpadding-right: 4rem;\n\t\t\t\tmargin-bottom: 0 !important;\n\t\t\t}\n\n\t\t\t.content-single .dst-list .dst-list__item .dst-list__title {\n\t\t\t\tfont-size: var(--dst--base-text-size);\n\t\t\t\tfont-weight: var(--dst--blog-text-font-weight, 400);\n\t\t\t\tmargin-bottom: 0;\n\t\t\t}\n\n\t\t\t.content-single .dst-list__content {\n\t\t\t\tposition: relative;\n\t\t\t\tpadding-left: 2.1rem;\n\t\t\t}\n\n\t\t\t.content-single .dst-list__content::before {\n\t\t\t\tcontent: \"\u2022\";\n\t\t\t\tposition: absolute;\n\t\t\t\tleft: 0;\n\t\t\t\tline-height: normal;\n\t\t\t}\n\n\t\t\t@media (max-width: 1115px) {\n\t\t\t\t.content-single .list-cols .left-col {\n\t\t\t\t\tpadding: 2rem;\n\t\t\t\t\tborder-right: none;\n\t\t\t\t\tborder-bottom: 2px solid #000;\n\t\t\t\t}\n\t\t\t}\n        <\/style>\n\t\t\n\n\n\n<p class=\"wp-block-paragraph\">By&nbsp;<strong>Simon Gray, Vice President, Workforce Solutions<\/strong>&nbsp;<\/p>\n\n\n\n<blockquote class=\"wp-block-quote has-custom-css has-background is-layout-flow wp-block-quote-is-layout-flow wp-custom-css-80aa4ecb\" style=\"background-color:#ff6a0026\">\n<p class=\"has-base-font-size wp-block-paragraph\" style=\"padding-top:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30)\"><strong>Bottom line<\/strong><br><em><em>Most organizations argue about whether an incident was fraud. The more useful question is what it cost \u2014 and most are absorbing real losses while measuring them as something else.<\/em><\/em><\/p>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong><strong><strong>The argument that goes nowhere<\/strong>&nbsp;<\/strong>&nbsp;<\/strong><\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A contractor underperforms and exits at sixty days. Procurement calls it a bad hire. Security suspects&nbsp;something&nbsp;worse. HR sees a performance issue. Finance sees a replacement cost. Everyone is looking at the same incident and describing a different thing \u2014 so nothing gets connected, and the pattern repeats next quarter with a different vendor and a different role.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The debate about intent is the wrong debate. Whether or not a given exit was technically fraud, the cost was&nbsp;real&nbsp;and the organization paid it. A shared language for that cost is what lets a cross-functional team act instead of&nbsp;argue.<\/p>\n\n\n\n<div class=\"wp-block-group is-layout-constrained wp-block-group-is-layout-constrained\" style=\"margin-bottom:var(--wp--preset--spacing--50)\">\n<h2 class=\"wp-block-heading\"><strong><strong><strong><strong>The fraud cost continuum<\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Candidate fraud does not announce itself. It surfaces as a bad hire, a delayed project, a budget overrun, or an unexplained data incident \u2014 categorized and closed without the underlying cause ever being named. The costs fall into four bands, each with a distinct probability and a distinct response.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Level 1 \u2014 Friction costs.&nbsp;&nbsp;<\/strong>Common; most programs absorb these regularly. A fraudulent candidate clears screening, onboards, underperforms, and exits \u2014 indistinguishable from an ordinary bad hire. Recruiting&nbsp;fee, onboarding time, project disruption, and re-fill typically run $20,000\u2013$50,000 per event. In programs placing 50+ workers a year, this happens several times a quarter. It does not feel like fraud. It&nbsp;feels like hiring&nbsp;variability \u2014 which is exactly why the root cause is never addressed.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Level 2 \u2014 Direct financial loss.&nbsp;&nbsp;<\/strong>Periodic. A candidate with a fabricated identity or credentials collects three to four pay periods before inconsistencies surface \u2014 $15,000\u2013$35,000 in direct payroll theft, and $40,000\u2013$75,000 once the recruiting fee, onboarding, and replacement search are added. Fraud operations target this band deliberately: large enough to be profitable at volume, modest enough that most teams close the incident rather than investigate the pattern.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Level 3 \u2014 Operational and competitive harm.&nbsp;&nbsp;<\/strong>Less frequent, but far&nbsp;costlier&nbsp;per incident. An overemployed worker billing full time at a senior rate while splitting attention across two roles creates compounding costs: paid capacity that never fully shows up, the opportunity cost of a senior seat that is not driving what it was priced to drive, and lost knowledge transfer to the team around them. A single senior-level incident commonly runs $150,000\u2013$300,000 in salary waste, rework, and lost output.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Level 4 \u2014 Catastrophic loss.&nbsp;&nbsp;<\/strong>Rare, but existential. IP theft, ransomware enabled by a planted insider, or export-control and data-sovereignty violations from location misrepresentation. Damages run into&nbsp;the millions: regulatory penalties, legal settlements, client terminations, reputational harm. The asymmetry is the point \u2014 a single $50,000 fraudulent placement can trigger $5 million or more in downstream damage, because the response is proportional not to the incident but to everything that placement could have touched.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong><strong><strong><strong><strong>Why the continuum aligns stakeholders<\/strong>&nbsp;<\/strong><\/strong><\/strong><\/strong>&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Each function sees the band closest to its own work \u2014 HR sees&nbsp;friction,&nbsp;finance sees direct&nbsp;loss,&nbsp;security sees the catastrophic tail. Left alone, those are four separate conversations.&nbsp;Placed on one continuum, they become a single picture, and the cross-functional team can finally agree on where the program&nbsp;actually sits&nbsp;and what level of response the exposure justifies.&nbsp;The continuum does not settle whether an incident was fraud. It settles what it&nbsp;cost&nbsp;\u2014&nbsp;which is the question that&nbsp;actually drives&nbsp;a decision.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong><strong>Start here<\/strong><\/strong>&nbsp;<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Take your last twelve months of early terminations and unexplained performance exits. Place each one on the continuum by cost, not by whether anyone called it fraud at the time. The exercise usually reveals two things: how much Level 1 and 2 cost the program has been&nbsp;absorbing&nbsp;as ordinary variability, and whether a Level 3 or 4 exposure has been sitting unexamined.&nbsp;<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-group is-layout-constrained wp-block-group-is-layout-constrained\" style=\"margin-bottom:var(--wp--preset--spacing--50)\">\n<blockquote class=\"wp-block-quote has-custom-css has-background is-layout-flow wp-block-quote-is-layout-flow wp-custom-css-1767dd85\" style=\"background-color:#ff6a0026\">\n<p class=\"has-sm-font-size wp-block-paragraph\"><strong>Questions to take back to your team<\/strong><br><br><em>Where on this continuum does our program actually sit \u2014 and have we ever measured it? How much Level 1 and 2 cost are we absorbing as hiring variability? Have we assessed our Level 3 and 4 exposure, or only the incidents obvious enough to surface on their own?<\/em><br><\/p>\n<\/blockquote>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<div class=\"wp-block-group has-background is-layout-constrained wp-container-core-group-is-layout-93dbf7e4 wp-block-group-is-layout-constrained\" style=\"background-color:#cce0f5;margin-top:0;margin-bottom:var(--wp--preset--spacing--80);padding-top:var(--wp--preset--spacing--40);padding-right:var(--wp--preset--spacing--50);padding-bottom:var(--wp--preset--spacing--40);padding-left:var(--wp--preset--spacing--50)\">\n<p class=\"no-margin has-custom-css has-primary-2-color has-text-color has-link-color wp-elements-c22becabfe35c14725921d7a7534c153 wp-custom-css-0a3e9bdb wp-block-paragraph\"><strong>Next steps<\/strong><br>Procom&#8217;s Workforce Solutions practice helps programs measure their position on the&nbsp;cost&nbsp;continuum and calibrate defenses to their actual exposure \u2014 across the full hiring lifecycle.<br><br>To discuss your program&#8217;s exposure, <a href=\"mailto:simong@procomservices.com\">get in touch<\/a>.<\/p>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<div class=\"separators-custom-box  \"  style='color: #de1de5;background-image: url(https:\/\/procomservices.com\/wp-content\/uploads\/2026\/03\/mini-banner.jpg);'>\n\n\t\n\t\n\t\t\t\t\t<div class=\"cta_title\" \n\t\t\tstyle='color:#ffffff;'\t\t\t>Read the full whitepaper:<br> <span style=\"font-size: 12px;\">Candidate Fraud in Enterprise Hiring<\/span><\/div>\n\t\t\n\t\t\t\t\t<a href=\"\/en-ca\/insights\/candidate-fraud-in-enterprise-hiring\/\"\n\t\t\t\t \t\t\t\tstyle=\"background-color:#feb600;\"\n\t\t\t\tclass=\"\"\n\t\t\t>\n\t\t\t<span class=\"\" \n\t\t\t\t\t\t>\n\t\t\t\tRead more\t\t\t<\/span>\n\t\t\t<\/a>\n\t\t\n\t<\/div>\n\n\n\n<div  style=\"--ds-row-gap: 0px;--ds-columns-count: 2;--grid-template-columns: var(--col1_desktop-fr, 1fr) var(--col2_desktop-fr, 1fr);--col2_desktop-fr: 5fr;--grid-template-columns_tablet: var(--col1_tablet-fr, 1fr);--grid-template-columns_mobile: var(--col1_mobile-fr, 1fr);--ds-columns-count_mobile: 1\" class=\"ds-columns\">\n\t<div class=\"ds-row\">\n\t\t\n\n<div  class=\"ds-column\">\n\t\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"\/wp-content\/uploads\/2026\/03\/simon-gray-linkedin-1.png\" alt=\"simon-gray-linkedin 1\" class=\"wp-image-22817\"\/><\/figure>\n\n<\/div>\n\n\n\n<div  class=\"ds-column\">\n\t\n\n<div class=\"wp-block-group has-custom-css has-background is-layout-constrained wp-container-core-group-is-layout-1d01f233 wp-block-group-is-layout-constrained wp-custom-css-97b0a9f3\" style=\"background-color:#d6d1c969;margin-top:0;margin-bottom:4.5rem;padding-top:var(--wp--preset--spacing--50);padding-right:var(--wp--preset--spacing--50);padding-bottom:var(--wp--preset--spacing--50);padding-left:var(--wp--preset--spacing--50)\">\n<p class=\"has-custom-css has-lg-font-size wp-custom-css-186e5ce4 wp-block-paragraph\"><strong>About the author<\/strong><\/p>\n\n\n\n<p class=\"has-h-4-font-size wp-block-paragraph\" style=\"margin-top:var(--wp--preset--spacing--40);margin-right:0;margin-bottom:var(--wp--preset--spacing--20)\"><strong>Simon Gray<\/strong>, Vice President, Workforce Solutions<\/p>\n\n\n\n<p class=\"has-custom-css wp-custom-css-3b7a9921 wp-block-paragraph\" style=\"font-style:normal;font-weight:400\">With over 25 years of experience in strategic staffing, Simon leads Procom\u2019s Workforce Solutions division to help clients hire quickly and compliantly.<\/p>\n<\/div>\n\n<\/div>\n\n\t<\/div>\n<\/div>\n\n\n\n<div class=\"separators-custom-box  \"  >\n\n\t\n\t\n\t\t\t\t\t<div class=\"cta_title\" \n\t\t\t\t\t\t>Ready to Connect?<\/div>\n\t\t\n\t\t\t\t\t<a href=\"#hs-form\"\n\t\t\t\t \t\t\t\tstyle=\"background-color:;\"\n\t\t\t\tclass=\"\"\n\t\t\t>\n\t\t\t<span class=\"\" \n\t\t\t\t\t\t>\n\t\t\t\tContact 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The more useful question is what it cost \u2014 and most are absorbing real losses while measuring them as something else. <\/p>\n","protected":false},"author":8,"featured_media":24961,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[1292],"tags":[1294,1301],"class_list":["post-26692","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-thought-leadership"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Stop debating whether it is fraud \u2014 use a cost continuum to align your stakeholders - Procom<\/title>\n<meta name=\"description\" content=\"Most organizations argue about whether an incident was fraud. 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