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India Gazette
a day ago
- Business
- India Gazette
Tech-enabled background checks will minimise rising employment fraud: EY
New Delhi [India], May 30 (ANI): With the rising employment fraud across all sectors in India, Ernst & Young's (EY) study named 'The First Firewall: Background checks as India Inc's frontline defence' suggests an urgent need to have technology-driven background checks as critical for safeguarding hiring report sheds light on the fact that most of the employment frauds are being committed by experienced professionals. Statistically, 96 per cent in healthcare, 88 per cent in financial services, and 79 per cent in IT/ITeS, underscoring the scale and sophistication of the problem.'Employment fraud has been a longstanding menace in India. To tackle this, today, background checks have become a non-negotiable across sectors. As we rapidly adopt technology in the workplace, the risks associated with it are evolving equally fast,' said Arpinder Singh, Global Markets and India Leader, Forensic and Integrity Services, study shows that the healthcare sector saw 83 per cent of flagged candidates fail basic background checks, with 75 per cent submitting fake employment documents. In financial services, 84 per cent of discrepancies stemmed from candidate misinformation, including inflated salaries and unapproved degrees. In IT/ITeS, 45 per cent of flagged candidates were found to be moonlighting, often with parallel employment or active GST registrations.'Validating the licences of healthcare professionals is essential to reduce clinical errors. In financial services, ensuring employee integrity protects confidential data. In today's rapidly evolving IT industry, background verification is vital for building a reliable team. These practices help organizations thrive by upholding core values, maintaining ethical standards, and making informed hiring decisions,' said Amit Rahane, Partner, Forensic and Integrity Services to the report, manual hiring processes are no longer sufficient. With fake documents readily available online and deep fakes used in virtual interviews, traditional verification methods fall stresses that AI-powered and automated background checks are essential to detect document anomalies, validate credentials, and ensure candidate authenticity. (ANI)
Time of India
3 days ago
- Business
- Time of India
Tech adoption picks up in Corporate India; so does employment fraud
As tech adoption picks up pace across India Inc, organisations find themselves up against growing instances of employment fraud that includes fraudulent employment records , falsified educational credentials , dual employment, moonlighting, and even use of deepfakes in online interviews. Employment-related discrepancies account for the biggest share of red flags across sectors including IT/ITeS, financial services, healthcare, professional services and BPO/KPO/GCCs, according to a report shared exclusively with ET by professional services firm EY . 'The First Firewall: Background checks as India Inc's frontline defence' report is based on one million background checks conducted by EY across various sectors over the last year. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Studie mit 12.000 Anwendern: 78% zeigen sichtbar verbesserte Venen Venen Kompass Weiterlesen Undo While employment fraud has been a longstanding menace in India, it has risen to concerning levels and is posing a big risk to most sectors. Top reasons for discrepancies across five major sectors Sector Employment Education Civil & criminal checks Other databases Address Financial services 71% 11% 14% 3.99% 0.01% Healthcare 83% 13% 0.3% 2.85% 0.85% IT 85% 5% 3% 6% 1% BPO/KPO/GCC 75% 10% 1% 7% 8% Professional services 91% 4% 0.5% 0.5% 4% Source: EY report Live Events 'To tackle this, today, background checks have become non-negotiable across sectors,' said Arpinder Singh, global markets and India leader, forensic and integrity services, at EY. And HR heads across industries are increasingly using technology-led background verification solutions. 'There's a growing pattern: 'How can we use technology to make things quicker?'' Singh said. The technology sector is seeing a surge in moonlighting while the healthcare space battles rising credential fraud amid ongoing talent shortages. 'Validating the licences of healthcare professionals is essential to reduce clinical errors,' said Amit Rahane, partner, forensic and integrity services, at EY. 'In financial services, ensuring employee integrity protects confidential data.' In employment discrepancies highlighted, about 75% of the red-flagged candidates had submitted fake employment documents in the healthcare sector, while 84% had overstated their experience in the financial services sector. Around 45% of the discrepant candidate profiles in the IT sector were found to be moonlighting while 38% of the candidates called out in the in the BPO/ KPO/ GCC sectors did not provide mandatory documents, such as experience letter or service letter, or UAN linked consent, the report found. For education-related frauds, 50% of such discrepancies that came up in the financial services sector involved candidates who had submitted fake education certificates; in professional services, 88% such cases had submitted fake documents. In 84% of discrepancy cases in the healthcare sector, candidates had obtained certification from institutes categorised as 'not accredited/approved/fake' by governing bodies. According to the EY study, the majority of the offenders are experienced professionals – 96% of fraudsters in healthcare, 88% in financial services, and 79% in IT/ITeS had already spent a few years in the workforce. Falsified documents are inexpensive, easy to procure and can be generated in a very short span of time, it said. IT/ ITeS, healthcare and financial services sectors have seen the largest number of recruitments and have been among the first to implement structured and third-party validated background checks. 'In today's rapidly evolving IT industry, background verification is vital for building a reliable team,' Rahane said. 'These practices help organisations by maintaining ethical standards and making informed hiring decisions.'
