As companies increasingly prioritise trust and transparency in their hiring processes, the demand for rigorous employment verification continues to grow. According to the report a notable 44 per cent spike in employment verification discrepancies across six major sectors, as revealed in its latest Annual Trends Report 2024.
This comprehensive report offers an in-depth analysis of discrepancy trends across various sectors, providing valuable insights from FY2021 to FY2024. It highlights key developments that are shaping talent acquisition, risk management, and operational efficiency in response to economic uncertainties, changing work environments, and the rising threat of identity fraud.
The report draws from millions of background checks conducted during this period and presents crucial sector-specific insights. It explores the growing adoption of digital verification methods and addresses emerging challenges like moonlighting and AI-powered checks, offering actionable intelligence for businesses looking to navigate today’s complex verification landscape. By examining discrepancy rates across industries, the report sheds light on how organizations can mitigate risks and refine their talent acquisition strategies.
Commenting on the report's release, 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. 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.”
Key findings from the report include significant discrepancies across various sectors. For instance, the telecom sector witnessed a sharp rise in discrepancy rates, reaching 18.2%, highlighting the increased vulnerability to identity fraud. In the BFSI sector, discrepancy rates climbed to 10.4%, indicating growing challenges in employment verification as financial institutions continue to face risks related to falsified credentials. The pharma sector saw a 50% increase in discrepancy rates since FY2021, reaching 17.1%, reflecting a surge in fraudulent qualifications.
While the FMCG industry showed an overall decline in discrepancies, e-commerce—representing 17% of FMCG consumption—faced increasing verification demands, particularly with the rise of gig workers. The IT and ITES sectors, despite a 9.8% 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%. Additionally, the gig economy, set to reach 25 million workers in India by 2030, saw a 12.5% discrepancy rate in verifications, underscoring the need for thorough screening in high-demand sectors like logistics, e-commerce, and last-mile delivery.
The report also highlights advancements in technology, including the integration of AI and machine learning algorithms, which have significantly improved the speed and accuracy of background verification processes. AuthBridge’s proprietary solutions, such as digital address verification with real-time GPS triangulation, have greatly reduced turnaround times and improved verification accuracy. Moreover, continuous monitoring and seamless integration with HR technology platforms have enhanced operational efficiency, allowing businesses to conduct 100% digital background checks in many cases.
AuthBridge also conducted over 150,000 moonlighting checks in FY2023-24, with a 12% discrepancy rate, underscoring the growing concern around dual employment risks. The report emphasizes the importance of adopting advanced technologies, such as AI-driven verification methods, to improve both speed and accuracy in the screening process.
