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New Delhi: Discrepancies noticed during employment verification process have spiked as companies put in place rigorous background checks before hiring people, a report said.
As companies increasingly prioritise trust and transparency in their hiring processes, the demand for rigorous employment verification continues to grow, said the Annual Trends Report 2024 by AuthBridge.
According to report, there has been a 44 per cent spike in employment verification discrepancies across six major sectors.
AuthBridge provides digital-first background verification and authentication solutions across workforce management, customer onboarding, and third-party business verifications.
The report, it said, offers analysis of discrepancy trends across various sectors, providing valuable insights from FY21 to FY24.
"The report draws from millions of background checks conducted during this period and presents crucial sector-specific insights," it added.
The telecom sector witnessed a sharp rise in discrepancy rates, reaching 18.2 per cent, highlighting the increased vulnerability to identity frauds, it said.
In the BFSI (banking, financial services and insurance) sector, discrepancy rates climbed to 10.4 per cent, indicating growing challenges in employment verification as financial institutions continue to face risks related to falsified credentials.
"The pharma sector saw a 50 per cent increase in discrepancy rates since FY2021, reaching 17.1 per cent, reflecting a surge in fraudulent qualifications," said AuthBridge's report .
Ajay Trehan, CEO of AuthBridge, said as industries rapidly adopt digital-first strategies, the need for secure, reliable, and scalable verification solutions has become essential for maintaining trust and operational resilience.
"Organisations across sectors are facing an increasingly complex environment where workforce integrity and data security are paramount," Trehan said.
The report further said that while the FMCG industry showed an overall decline in discrepancies, e-commerce -- representing 17 per cent of FMCG consumption -- faced increasing verification demands, particularly with the rise of gig workers.
"The IT and ITES sectors, despite a 9.8 per cent drop in discrepancy rates compared to FY2021, continue to grapple with issues related to falsified credentials, with employment and education discrepancies standing at 10.2 per cent," AuthBridge said.
AuthBridge said it conducted over 1,50,000 moonlighting checks in FY24, with a 12 per cent discrepancy rate, underscoring the growing concern around dual employment risks.