Employment Verification Discrepancies Surge by 44% Across Six Key Sectors, Report Reveals

Employment verification discrepancies have surged as companies implement stricter background checks before hiring, according to a report. AuthBridge's Annual Trends Report 2024 highlights the growing emphasis on trust and transparency in hiring, leading to increased demand for thorough employment verification. The report reveals a 44% rise in discrepancies across six key sectors.

Representative image

AuthBridge offers digital-first solutions for background verification and authentication, covering workforce management, customer onboarding, and third-party business verifications. The report provides an analysis of discrepancy trends from FY21 to FY24, offering valuable insights drawn from millions of background checks conducted during this period.

Sector-Specific Discrepancy Trends

The telecom sector experienced a significant increase in discrepancy rates, reaching 18.2%, indicating heightened vulnerability to identity fraud. In the BFSI sector, which includes banking, financial services, and insurance, discrepancies rose to 10.4%, reflecting challenges in verifying employment credentials amid risks of falsified information.

The pharma sector saw a 50% rise in discrepancy rates since FY2021, now at 17.1%, highlighting a surge in fraudulent qualifications. Meanwhile, the FMCG industry showed an overall decline in discrepancies. However, e-commerce, accounting for 17% of FMCG consumption, faced rising verification demands due to the increase in gig workers.

Challenges in IT and ITES Sectors

The IT and ITES sectors reported a 9.8% decrease in discrepancy rates compared to FY2021 but still struggle with falsified credentials. Employment and education discrepancies remain at 10.2%. AuthBridge also noted conducting over 1,50,000 moonlighting checks in FY24, with a 12% discrepancy rate, highlighting concerns about dual employment risks.

Ajay Trehan, CEO of AuthBridge, emphasised the importance of secure and scalable verification solutions as industries adopt digital-first strategies. He stated that maintaining trust and operational resilience is crucial amid an increasingly complex environment where workforce integrity and data security are vital.

Organisations across various sectors face challenges related to workforce integrity and data security. As they navigate this complex landscape, the need for reliable verification solutions becomes essential to ensure trust and operational stability.