The latest report by AuthBridge highlights a concerning trend: employment verification discrepancies have surged by 44% across six key sectors from 2020-21 to 2023-24. As companies tighten their verification processes, sectors like telecom, BFSI (banking, financial services, and insurance), and pharma have seen significant increases in discrepancies, reflecting the growing challenges in background checks.
In the telecom sector, discrepancies rose sharply to 18.2%, indicating an increased vulnerability to fraudulent credentials and identity fraud. Similarly, the BFSI sector saw its discrepancy rate rise to 10.4%, a major concern for financial institutions where accurate verification is crucial for reducing risks. The pharma industry, too, faced a 50% increase in discrepancies, highlighting the challenge of verifying qualifications in this critical sector.
Interestingly, while the FMCG sector overall saw a decline in discrepancies, e-commerce—a major component of FMCG, accounting for 17% of consumption—faced higher verification demands, especially with the rise of gig workers. The gig economy, which has seen tremendous growth, reported a 12.5% discrepancy rate in verifications, underscoring the need for thorough screening in sectors like logistics, e-commerce, and last-mile delivery.
AuthBridge also highlighted the importance of using advanced technology like AI-powered background checks, which have improved the speed and accuracy of verifications. The report revealed that over 150,000 moonlighting checks were conducted in FY 2023-24, with a 12% discrepancy rate, bringing attention to the growing issue of dual employment in India’s workforce.
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The spike in discrepancies across sectors reflects the rising need for rigorous verification processes as companies aim to mitigate hiring risks in an increasingly digital and remote work environment. These trends showcase the evolving landscape of HR practices, where digital onboarding and remote work are creating new challenges for companies striving to ensure trust and transparency in their hiring practices.
