why not, I mean criminality of all sorts happens and this isn't even criminal. Of course it requires not meeting HR or interviewers after interview/on hire, which means it's really only good for big companies.
Speaking from experience, small companies can fall for this too. Companies that completely isolate the existing employees from candidates are just asking for trouble. A single-digit percentage of recruiters will now make a point of photographing the interviewee as part of the process.