ABSTRACT Making an accurate hiring decision is extremely important for most employers. The cost associated with making a poor hiring decision from a productivity, customer service, and liability prospective have been widely studied and has been estimated to be three times the annual salary of the individual involved. Also, in recent years numerous studies have reported that applicants for employment have grown increasingly willing to misrepresent their credentials in the application process. This growing phenomenon has further complicated the hiring decision for employers attempting to hire the right individual for a position. The purpose of this paper is to examine the problems created by this increased willingness of job applicants to misrepresent their credentials, and to present policy and practice suggestions that employers can utilize in order to reduce their legal liability and the cost associated with making poor hiring decisions.