How do they get away with it? Most companies I’ve applied to run background checks and ask for references. The last one I was at refused to send an offer letter until my previous employer answered their calls.
You pay your friends or a third party to LARP as a company/manager/whoever. An LLC is cheap to open and sliding your buddy a $20 for a 15 minute phone call is a no-brainer. I am not condoning this nor am I speaking from personal experience, but this is absolutely a real thing that happens a lot more than you might like to believe.