CYVIN

So I had extended an offer to someone to fill and opening in my group, and I was really happy about it because that person seemed to be exactly what I was looking for - right personality, right experience, it was a good fit.  But We did a background check and discovered that the person had put on their resume that they received an associates degree and the background check comes back with that not being the case.  Recruiter then calls the person and asks if they can provide proof of the degree and things get ugly - they don't want the job any more, they can't believe we're prying into their personal life, etc, etc.

The best part is: I DIDN'T CARE WHETHER THEY HAD A DEGREE OR NOT!

But, I am glad that it happened, because I really needed someone who is honest in this particular position.

clearly

Yeah it sucks and its unfair, why should someone try and pass off a degree when I've spent my money, time and sweat for one. 

Read this article, the BBC says a study found as much as 25% of finance applicants lied about their skills.
http://news.bbc.co.uk/1/hi/business/4129796.stm

I guess there are always cheats and dishonest people out there.
If I were to advise someone about picking applicants, I'd say don’t just skim off the top, everyone exaggerates about their skills. If someone almost matches your criterion, but maybe had a few low grades, or didn’t get a university degree and started at the bottom, they usually more than make up for it in skill and experience that no graduate will have for a good few years.

Just my 2c

Perhaps it's because most companies require a degree. I got half-way through my Bsc (Computer Science), ran out of money, had no place to stay, and started working for a builder, double-shifts.

Extended my Pascal to teaching myself Delphi, which I've been doing since Delphi 4 came out.
I have never ever even gained an interview through applications, but a relative got me in with a FI company, and I gave my all for the time I was there.

After wasting my time applying all over the place, and having to support myself by other means in other odd-jobs, I decided to do my own thing. So far, I've got a crawler out there (among various rough apps I use to make my life easier) and I'll be indexing shortly once I've finished writing the proggy for it.

At least I'll be able to say I've done a whack of different things in my lifetime, and have been forced into becoming self-sufficient as an entrepreneur.

Jobs are nice - at least you don't worry every month as to where the basic living is coming from!
See? I don't lie about what I've done, and it gets me nowhere employment-wise. Companies generally aren't interested in self-taught people following their passion, irrespective of what they can do.

Perhaps this is a possible example of why some people lie about their degrees? Funny thing is, the newly-qualified guy in Delphi could learn quite a bit from me... 

And, at some point, I fully intend to strike out on my own.  I've been trying to build cash and a reputation ahead of that, though.

Exactly~ and if you did get the job without them checking and they query you on the subject you have ment to have studied they would find out pretty quick if you had just made it up

hello there
what one can do is ensure by asking questions in detail about what one has stated in his resume
also ask for atleast 3 referecnes so that you can check with them whether the candidates credentials are true or not
that way ensure that you have selected the right person for your organisation