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Right. My boss' argument is that "most people on it don't actually look for work," but you have to report specifically where you applied and give that person's contact information. You also basically have to accept the first job offer you get, and they check! I don't even know how people would even attempt to cheat that other than "hope they don't actually check."
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That is one of the big claims, but I remember we would sometimes try to schedule interviews for the next week, because we already had enough interviews this week, and we didn't want to turn up short.