The Johannesburg Stock Exchange’s (JSE’s) censure fine and debarment of a former iOCO (previously EOH) independent director has highlighted ongoing concerns about qualification fraud.
While in this case, artificial intelligence (AI) wasn’t used, emerging technologies are making it easier to fabricate qualifications.
UK-based Hedd, which released research this month, found that more than two-thirds of companies surveyed had seen an increase in job application fraud. Respondents attributed this rise to AI tools being used to enhance or fabricate experience or qualifications.
Prospects, another UK company, notes: “AI tools are playing a major role in improving and crafting job applications, with 43% of students using AI for editing a CV or cover letter, 35% for writing a CV or cover letter from scratch, and 26% for answering questions in application forms.”
Late last week, the JSE imposed a public censure on Anushka Bogdanov, a former independent non-executive director of EOH, which rebranded as iOCO following a clean-up of a scandal involving falsified financial statements. Bogdanov was fined R500 000 and banned for 10 years “from serving as a director or officer of any JSE-listed company”.
The JSE sanctioned Bogdanov after finding she had falsely claimed to hold a PhD in International Financial Management and Mathematics from the London Business School. Based on this claim, EOH listed her as “doctor” in regulatory filings and annual reports.
By Monday morning, iOCO’s shares had dropped 1.88% to R4.17. Over five years, they are down 15.76%.
While there is no suggestion AI was involved in Bogdanov’s deception, “it’s becoming increasingly difficult to separate AI fakes from real documents,” says ICT industry veteran Adrian Schofield.
Tech to the rescue
As job applicants use AI to falsify information, verification companies are also turning to technology to combat fraud. Managed Integrity Evaluation (MIE) says current processes use a “combination of verification methods” and that in future, AI and biometric authentication will help identify and reduce fraud.
Responding to ITWeb’s questions, MIE said technologies used to detect fake qualifications include scanning QR codes on certificates and cross-checking these against platforms such as Veri-Quik, which offers authenticity services. The South African Qualifications Authority also offers databases for qualification checks, while some institutions issue tamper-proof digital credentials using blockchain, allowing one-click verification.
In a recent blog post, MIE’s head of marketing, Jennifer Barkhuizen, said “employers are also increasingly assessing candidates’ online behaviour as part of the hiring process”. She added that “social media screening has surged, particularly in finance, legal, logistics and e-hailing industries, as companies seek to mitigate reputational risks”.
Five-year probe
After discovering Bogdanov’s qualifications were fake, the matter was escalated to the JSE, which in 2020 asked her to provide proof of her degree. Bogdanov repeatedly requested extensions, citing “a variety of issues and personal circumstances that prevented her from dealing with this issue in a timely manner,” the JSE said.
In late 2024, Bogdanov “confirmed and admitted to the JSE that she did not have a PhD degree from the London Business School,” the exchange added.
Schofield says companies that fail to verify qualifications should also be held accountable. Hedd’s research found that 48% of large businesses do not check academic credentials.
MIE notes that “the implications of fake qualifications are far-reaching. Without a trusted screening process, businesses risk financial loss, damaged reputations and compromised public trust.”
EOH has faced previous scrutiny. In August 2020, the JSE fined the company R7.5 million for falsifying financial information in 2017 and 2018. By the end of its 2024 financial year, the company was no longer receiving qualified audits and had made progress in resolving issues related to the scandal.
“Legacy payments are expected to be mostly completed in the 2025 financial year,” said CFO Ashona Kooblall in her letter to shareholders in the latest annual report.
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