Fake jobs and applications are eroding trust in the hiring process, a new report has warned, urging organisations to bring back the "human touch" in recruitment to improve outcomes.

Employers in iHire's 2026 State of Online Recruiting Report cited fake or fraudulent applicants as a top online recruiting challenge (19.2%), with nearly a quarter (23.6%) of organisations saying they received at least one in the past year.

Jobseekers, on the other hand, said fake, fraudulent, or "ghost" jobs are a chief job search challenge (39.3%), with 41.2% saying they encountered a fake or scam job in the past year.

Some 42.8% of candidates also said they are growing frustrated with determining whether a job or employer on a recruiting platform is legitimate, while 57.5% are frustrated by not knowing whether they will hear back from employers they have applied to.

"Our research shows that trust, transparency, and human connection matter more than ever in recruiting," said Steve Flook, iHire's president and chief executive officer, in a statement.

"Employers are receiving unqualified and sometimes fraudulent applicants, and job seekers are questioning whether opportunities are legitimate and if they'll hear back after applying."

AI in hiring hits trust

The trust issues come in the wake of growing negative perceptions on employers who are using artificial intelligence (AI) in their hiring process.

Gartner's findings last year revealed that 25% of job candidates trust employers less if AI is used to evaluate their information.

The latest iHire report echoes these findings, with 44.3% of jobseekers saying they view employers' increasing use of AI negatively.

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