New Delhi
Surge in background check discrepancies within the Banking, Financial Services, and Insurance (BFSI) sector, coinciding with rapid digital transformation driven by innovations like UPI and BNPL schemes. Discrepancies reached 10.4% in FY 2023-24, an increase of 18.1% from the previous year report said on Thursday
Employment verification inconsistencies were the most prevalent, accounting for 14.6% of all discrepancies, posing risks to workforce management and operational efficiency. Education verification issues followed at 9.1%, underscoring the need for thorough checks on academic qualifications. Additionally, 6.4% of address verifications showed inaccuracies, highlighting the importance of reliable processes to combat identity fraud.
The report noted a growing trend in discrepancies related to criminal record checks (CRC) and identity verification. India’s crime rate has risen from 422.2 crimes per million in 2022 to 445.9 per million in 2024, contributing to this increase. Alarmingly, 73.4% of inconsistencies are linked to identity verification, emphasizing the need for comprehensive screening frameworks.
Ajay Trehan, CEO of AuthBridge, remarked, ‘The rapid expansion of the BFSI sector introduces vulnerabilities alongside growth opportunities.’ He stressed the importance of adopting advanced technologies for accurate end-to-end verification to safeguard against credential fraud.
Experts recommend that the BFSI sector implement AI-driven verification solutions to enhance accuracy in checking employment, education, address, and identity credentials, fostering trust and integrity in hiring practices for long-term success.
