With a growing emphasis on trust and transparency in hiring, organizations are increasingly investing in thorough background checks.
AuthBridge, a digital-first background verification solution provider, has observed a substantial 44% rise in employment verification discrepancies across six major sectors, according to its 2024 Annual Trends Report.
Covering trends from FY2021 to FY2024, this report provides a sector-specific analysis that highlights shifts in talent acquisition, risk management, and operational efficiency as companies respond to evolving challenges such as economic uncertainties, hybrid work models, and increased identity fraud.
Sector-Specific Discrepancies and Emerging Risks
AuthBridge’s report reveals notable discrepancies across various sectors. The telecom industry, for example, experienced an 18.2% discrepancy rate, spotlighting a significant risk of identity fraud.
In the BFSI sector, discrepancies rose to 10.4%, reflecting challenges faced by financial institutions in verifying credentials amid rising threats. The pharmaceutical sector saw a 50% increase in discrepancies since FY2021, now at 17.1%, indicating a growing issue with falsified qualifications.
In contrast, while the FMCG sector overall reported a decline in discrepancies, its e-commerce segment—driven largely by gig workers—has seen growing verification needs. The IT and ITES sectors also reported discrepancies at 10.2%, a slight improvement over previous years but still a pressing concern.
The report underscores the implications of a rapidly expanding gig economy, expected to reach 25 million workers in India by 2030. With a 12.5% discrepancy rate in employment verifications, the need for robust screening processes is clear, especially in high-demand sectors such as logistics and e-commerce.
AuthBridge also conducted 150,000 moonlighting checks in FY2023-24, revealing a 12% discrepancy rate related to dual employment, a rising concern as hybrid work models become more common.
Role of Technology in Advancing Verification Accuracy and Speed
AuthBridge highlights the vital role of technology in addressing these complex verification challenges. With the integration of AI and machine learning algorithms, AuthBridge has enhanced the accuracy and efficiency of its verification processes, including real-time GPS-based address checks and continuous monitoring through HR platforms.
These advancements have reduced turnaround times and enabled fully digital background checks, helping organizations navigate the evolving demands of digital-first operations. AuthBridge’s CEO, Ajay Trehan, commented on this shift, emphasizing the importance of secure, scalable solutions to uphold trust and resilience as industries embrace digital transformation.
In summary, AuthBridge’s Annual Trend Report 2024 serves as a valuable resource for HR professionals, compliance officers, and business leaders striving to strengthen their background screening practices.
With its detailed insights into sector-specific challenges and technology-driven solutions, the report offers a roadmap for organizations to mitigate risks and adapt to the changing landscape of workforce management, customer onboarding, and third-party verifications.
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