I know of so many pencil pilots. They are everywhere, and it seems the only people able to stop them are the Airlines when it comes to interview time. It appears to me that the CAA either don't have the resources, or don't give a damn.
These are the guys you're competing with when it comes job hunting.
I know of one guy flying a 737 who has at least 1000 hours of pencil time in his book (possibly up to 1500). they usually give them selves away when they can't fly a plane, or can't even get an clearance (for which a friend of mine busted an newbie F/O and sent him back to the unemployment office a while ago).
we're basically all on the honor system, and there's little honor left in a lot of new pilots these days.