Spike in Employment Verification Discrepancies Uncovered: AuthBridge Report

A report by AuthBridge highlights a 44% rise in employment verification discrepancies across six major sectors from 2020-21 to 2023-24. Sectors such as telecom, BFSI, and pharma witnessed significant increases in discrepancies, indicating a growing need for robust verification processes amid the expansion of digital verification methods.

Employment verification discrepancies are on the rise across several key sectors, according to a new report released by AuthBridge, a background verification and authentication leader. The report indicates a significant 44 percent increase in discrepancies from 2020-21 to 2023-24, affecting six major sectors.

Companies are stepping up their efforts in employment verification, recognizing the importance of thorough background checks to prevent hiring individuals with falsified credentials. AuthBridge's comprehensive analysis, based on millions of checks over four years, provides sector-specific insights into verification practices.

The report highlights the shift towards digital verification methods and addresses emerging challenges such as moonlighting and AI-driven checks. "Background verification has become integral to modern HR practices, especially with the rise in remote work and digital onboarding," said Ajay Trehan, CEO of AuthBridge. He emphasized the role of informed decision-making in risk mitigation and operational efficiency.

Key findings show notable discrepancies across sectors. The telecom industry saw an 18.2 percent rise in discrepancy rates, while discrepancies in the BFSI sector reached 10.4 percent. The pharma sector experienced a 50 percent increase since 2020-21, hitting 17.1 percent.

The FMCG sector reported a decline in discrepancies; however, e-commerce, which accounts for 17 percent of FMCG consumption, is facing rising verification demands due to the growth of gig workers. The gig economy recorded a 12.5 percent discrepancy rate, highlighting the necessity for comprehensive screening in sectors like logistics, e-commerce, and last-mile delivery.

(With inputs from agencies.)