As companies increasingly focus on trust and transparency in their hiring processes, the demand for thorough employment verification is surging. AuthBridge, a provider of digital-first background verification and authentication solutions, has reported a significant 44% spike in employment verification discrepancies across six major sectors in its Annual Trends Report 2024. This report analyses discrepancy trends from FY2021 to FY2024, offering valuable insights into the evolving landscape of talent acquisition and risk management amidst economic uncertainties and the threat of identity fraud.
Key findings
Drawing from millions of background checks conducted over the reporting period, the report highlights sector-specific insights and the growing adoption of digital verification methods. It addresses challenges such as moonlighting and AI-powered checks, providing actionable intelligence for businesses navigating today’s complex verification landscape.
The telecom sector experienced a sharp rise in discrepancy rates, reaching 18.2%, underscoring its vulnerability to identity fraud.
In the BFSI sector, discrepancies climbed to 10.4%, reflecting increased challenges related to falsified credentials as financial institutions face heightened risks.
The pharma sector saw a staggering 50% increase in discrepancies since FY2021, now standing at 17.1%, indicating a surge in fraudulent qualifications.
While the FMCG industry showed an overall decline in discrepancies, the e-commerce sector, comprising 17% of FMCG consumption, faced rising verification demands, particularly due to the influx of gig workers.
The IT and ITES sectors continue to deal with issues related to falsified credentials, with employment and education discrepancies at 10.2%, despite a 9.8% decrease in overall discrepancies compared to FY2021.
The gig economy, projected to reach 25 million workers in India by 2030, reported a 12.5% discrepancy rate in verifications, highlighting the need for thorough screening in high-demand sectors like logistics and last-mile delivery.
Ajay Trehan, CEO of AuthBridge, said, “Organisations across sectors are facing an increasingly complex environment where workforce integrity and data security are paramount. AuthBridge is committed to providing solutions that not only meet these demands but also help businesses navigate the evolving challenges of a digital economy. By enabling informed decision-making, we empower companies to mitigate risks, enhance efficiency, and stay ahead in this era of transformation.”
Advancements in technology
The report also discusses significant technological advancements that have enhanced the speed and accuracy of background verification processes. AuthBridge’s proprietary solutions, including digital address verification with real-time GPS triangulation, have notably reduced turnaround times and improved verification accuracy. Continuous monitoring and seamless integration with HR technology platforms allow businesses to conduct 100% digital background checks in many instances.
AuthBridge conducted over 150,000 moonlighting checks in FY2023-24, yielding a 12% discrepancy rate, further emphasizing the growing concern regarding dual employment risks. The report advocates for adopting advanced technologies, such as AI-driven verification methods, to enhance both speed and accuracy in the screening process.
