BFSI sector sees 10.4% increase in background check discrepancies for FY 23-24

BFSI sector sees 10.4% increase in background check discrepancies for FY 23-24, reports AuthBridge

As the BFSI sector navigates rapid digital transformation, fueled by innovations like UPI and BNPL schemes, the demand for financial services and talent is at an all-time high. According to AuthBridge, a leading digital-first background verification and authentication solutions provider, the BFSI sector recorded 10.4% discrepancies in background checks for FY 2023-24, marking an 18.1% increase from the previous financial year. This uptick reflects the growing challenge of verifying candidate credentials in a highly competitive market, where individuals may resort to falsifying academic, professional, or personal information to secure positions.

The report highlights that employment verification discrepancies are the most prevalent, accounting for 14.6% of inconsistencies. This presents a significant risk to organizations, as inaccurate employment histories can hinder effective workforce management. Education verification discrepancies followed at 9.1%, pointing to the importance of validating academic qualifications. Additionally, 6.4% of address verifications showed inaccuracies, further emphasizing the need for reliable verification protocols to mitigate risks associated with identity misrepresentation.

Beyond employment and education checks, discrepancies in criminal record checks (CRC) and identity verification are also steadily rising. This increase in CRC discrepancies can be attributed to the overall crime rate in India, which has climbed from 422.2 crimes per million in 2022 to 445.9 per million in 2024, according to the latest report from the National Crime Records Bureau (NCRB). Additionally, AuthBridge’s Annual Trends Report 2024 (ATR’24) highlights that 73.4% of the overall reported discrepancies are in identity verification checks. These concerning trends underscore the critical need for comprehensive background screening frameworks, which are essential to protect fraudulent activities and compliance risks in any organization, especially for a sophisticated industry like financial institutions.

Commenting on the findings, Ajay Trehan,  CEO & Founder, AuthBridge, said, “The rapid expansion of the BFSI sector is a double-edged sword. While it brings growth opportunities, it also introduces vulnerabilities. As a trusted expert in the BFSI space, AuthBridge has observed that employment-related discrepancies are emerging as a significant concern. Financial institutions must prioritize the use of cutting-edge tech for end-to-end verification to not only safeguard against credential fraud but to build a foundation of trust and integrity that ensures long-term success.”

To stay ahead of evolving risks, financial institutions need to implement AI-driven verification solutions that ensure accurate background checks across employment, education, address, and identity credentials. As the BFSI sector continues to expand, building trust through transparent hiring and onboarding processes will become a critical differentiator.

About AuthBridge

AuthBridge is India’s largest Authentication company, delivering cutting-edge technology and alternate data analysis for Identity Management, Onboarding & Verification, and Business Intelligence. More than 2500+ clients across 30+ sectors, including Fortune 500 and Indian Unicorns, rely on AuthBridge’s sophisticated authentication products and solutions. These AI and ML-powered products are supported by the largest proprietary identity, education, and criminal databases in the country. Led by an experienced management team, AuthBridge has conducted over 10 million verification checks since its inception in 2005. AuthBridge is ISO 9001:2015 certified for quality and ISO/IEC 27001:2013 compliant for information security.

Source: ET Times

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44% spike in employment verification discrepancies across 6 major sectors, reports AuthBridge

44% spike in employment verification discrepancies across 6 major sectors, reports AuthBridge

ATR-Launch_PR

As companies increasingly prioritise trust and transparency in their hiring processes, the demand for rigorous employment verification continues to grow. Reflecting this trend, AuthBridge – a leading provider of digital-first background verification and authentication solutions across workforce management, customer onboarding, and third-party business verifications, reported a notable 44% spike in employment verification discrepancies across six major sectors, as revealed in its latest Annual Trends Report 2024. This comprehensive report offers an in-depth analysis of discrepancy trends across various sectors, providing valuable insights from FY2021 to FY2024. It highlights key developments that are shaping talent acquisition, risk management, and operational efficiency in response to economic uncertainties, changing work environments, and the rising threat of identity fraud.

The report draws from millions of background checks conducted during this period and presents crucial sector-specific insights. It explores the growing adoption of digital verification methods and addresses emerging challenges like moonlighting and AI-powered checks, offering actionable intelligence for businesses looking to navigate today’s complex verification landscape. By examining discrepancy rates across industries, the report sheds light on how organizations can mitigate risks and refine their talent acquisition strategies.

Commenting on the release of the report, Ajay Trehan, CEO of AuthBridge, said, “As industries rapidly adopt digital-first strategies, the need for secure, reliable, and scalable verification solutions has become essential for maintaining trust and operational resilience. Organisations across sectors are facing an increasingly complex environment where workforce integrity and data security are paramount. AuthBridge is committed to providing solutions that not only meet these demands but also help businesses navigate the evolving challenges of a digital economy. By enabling informed decision-making, we empower companies to mitigate risks, enhance efficiency, and stay ahead in this era of transformation.”

Key findings from the report include significant discrepancies across various sectors. For instance, the telecom sector witnessed a sharp rise in discrepancy rates, reaching 18.2%, highlighting the increased vulnerability to identity fraud. In the BFSI sector, discrepancy rates climbed to 10.4%, indicating growing challenges in employment verification as financial institutions continue to face risks related to falsified credentials. The pharma sector saw a 50% increase in discrepancy rates since FY2021, reaching 17.1%, reflecting a surge in fraudulent qualifications.

While the FMCG industry showed an overall decline in discrepancies, e-commerce—representing 17% of FMCG consumption—faced increasing verification demands, particularly with the rise of gig workers. The IT and ITES sectors, despite a 9.8% drop in discrepancy rates compared to FY2021, continue to grapple with issues related to falsified credentials, with employment and education discrepancies standing at 10.2%. Additionally, the gig economy, set to reach 25 million workers in India by 2030, saw a 12.5% discrepancy rate in verifications, underscoring the need for thorough screening in high-demand sectors like logistics, e-commerce, and last-mile delivery.

The report also highlights advancements in technology, including the integration of AI and machine learning algorithms, which have significantly improved the speed and accuracy of background verification processes. AuthBridge’s proprietary solutions, such as digital address verification with real-time GPS triangulation, have greatly reduced turnaround times and improved verification accuracy. Moreover, continuous monitoring and seamless integration with HR technology platforms have enhanced operational efficiency, allowing businesses to conduct 100% digital background checks in many cases.

AuthBridge also conducted over 150,000 moonlighting checks in FY2023-24, with a 12% discrepancy rate, underscoring the growing concern around dual employment risks. The report emphasizes the importance of adopting advanced technologies, such as AI-driven verification methods, to improve both speed and accuracy in the screening process.

The AuthBridge Annual Trend Report 2024 is a critical resource for HR professionals, compliance officers, and business leaders aiming to optimize their background screening processes and strengthen their risk management strategies in a rapidly evolving business environment. With its detailed insights and sector-specific analysis, the report provides a roadmap for organizations to navigate the challenges of workforce management, customer onboarding, and third-party business verifications.

About AuthBridge

AuthBridge is India’s largest Authentication company, delivering cutting-edge technology and alternate data analysis for Identity Management, Onboarding & Verification, and Business Intelligence. More than 2500+ clients across 30+ sectors, including Fortune 500 and Indian Unicorns, rely on AuthBridge’s sophisticated authentication products and solutions. These AI and ML-powered products are supported by the largest proprietary identity, education, and criminal databases in the country. Led by an experienced management team, AuthBridge has conducted over 10 million verification checks since its inception in 2005. AuthBridge is ISO 9001:2015 certified for quality and ISO/IEC 27001:2013 compliant for information security.

Source: ET Times

Payal, VP of AuthBridge, interview with People Matters

Payal Aggarwal on how DEI is a way of life at AuthBridge 

Payal Aggarwal on how DEI is a way of life at AuthBridge

Payal, VP of AuthBridge, interview with People Matters

In conversation with Payal Aggarwal, learn how AuthBridge’s proactive DE&I initiatives create a culture where every employee feels valued, respected, and empowered to succeed.


By: People Matters | Updated at : 19 June 2024 04:25 PM (IST)

Fostering a diverse and inclusive (DE&I) environment is essential in today’s globalised workplace. Studies by We-Ace, for instance, reveal a significant 45% increase in inclusive hiring practices for women in recent years. This reflects a growing global commitment to gender equality at work. This recognition extends beyond gender, with research indicating that 85% of companies surveyed acknowledge the need to address broader biases and create a more equitable working environment.

However, achieving true DE&I goes beyond simply hiring a diverse workforce. It’s about creating a culture where everyone feels valued, respected, and empowered to contribute their unique talents and perspectives. This requires a commitment to dismantling unconscious bias, providing ongoing learning and development opportunities, and fostering a sense of belonging for all employees.

One organisation that exemplifies this commitment is AuthBridge Research Services Private Limited. Headquartered in India, AuthBridge is a company that walks the talk regarding DE&I.

Payal Aggarwal, the company’s recently appointed Vice President of Human Resources, discussed AuthBridge’s longstanding dedication to creating an inclusive workplace.

Diversity is the Norm, Not the Exception

Payal emphasises that diversity isn’t an afterthought at AuthBridge. It’s woven into the very fabric of the company’s culture. This philosophy resonated deeply with her upon joining the organisation. I recently joined Authbridge,” she explains, “I was pleasantly surprised to learn that our female workforce ratio is 40%. This is excellent news and a reassuring indication that we provide a safe and supportive environment for women to thrive and advance in their careers with us.” 

This commitment to gender equality extends to senior management, with a remarkable 50% of Assistant Vice President (AVP) roles held by women.  Furthermore, when considering leadership positions at the AVP level and above, including business heads and functional heads, the female representation remains impressive at 37%. While acknowledging these achievements, Payal outlines her ambitious goal of achieving 50% female representation across the workforce. 

Payal also recognises that DE&I encompasses more than just gender. She is actively exploring opportunities to integrate veterans into the AuthBridge workforce.I have been considering the ways to create a more inclusive workplace and though it is relatively early for me, I am identifying opportunities to integrate veterans into our workforce,” she explains. Veterans bring a wealth of experience and skills to the table, and AuthBridge recognizes their potential to significantly contribute to the company’s success.

Supporting Women Re-entering the Workforce

Recent research by Longhouse Consulting showed that approximately 80% of working women in India take career breaks, with 45% citing childcare and personal commitments as primary reasons.

Payal demonstrates a keen understanding of these challenges faced by women. Recognising the valuable contributions these women can make, she plans to develop targeted programmes to support their re-entry into the workforce. 

She shares, One cohort that we want to focus on is women returning from career breaks. Several women who had to temporarily step back from their careers due to personal reasons deserve opportunities for reintegration into the workforce. It’s essential to provide support and resources tailored to their unique needs to facilitate a smooth transition back into the professional realm.”

Mitigating Bias Through Rigorous Hiring Practices

Unconscious bias in recruitment often puts a dent in the hiring plans of an organisation and in truly nurturing a diverse workforce. One way Authbridge tackles this is through a meticulous system for analysing why candidates are not selected. This ensures that gender is never a factor in rejection decisions. They go beyond simply checking a box, recognising that some female candidates might be in a life stage requiring temporary support. These candidates could be strong fits in the future, so a rejection isn’t necessarily final.

To further ensure fairness, the company has a system in place for detailed feedback on every rejected candidate. Every Team Manager personally reviews this feedback to identify any potential bias creeping in. If there’s even a hint of a non-merit-based rejection, the hiring manager is consulted to understand the rationale behind the decision. Only rejections demonstrably based on performance and merit are considered final. Additionally, cross-functional interviews are conducted to ensure a wider perspective on candidate suitability and to prevent bias from any one department influencing the outcome.

Work-From-Home Policy Promotes Inclusion

AuthBridge embraces a work-from-home policy for specific roles, particularly within their operations team. This policy fosters inclusion by allowing employees from diverse locations across India to contribute and participate in the company’s success.We have extended our recruitment efforts to candidates across various states, including Tier-2 and Tier-3 cities in India, where we have employees working from home. They are an integral part of our workforce,” Payal explains. This geographically diverse workforce enriches the company with a variety of perspectives and experiences.

While recognising the benefits of a flexible work-from-home policy, Payal also acknowledges the importance of fostering collaboration and innovation. 

Work-from-home opportunities are indeed role-based, but we’re also encouraging more and more people to come and work from the office because we have realised at this stage of growth, we need a lot of cross-functional thinking, collaboration, ideation and implementation,” she explains. 

By striking a balance between work-from-home flexibility and in-office collaboration, AuthBridge fosters an environment that is both inclusive and conducive to generating creative ideas and solutions.

DE&I as a Continuous Journey

For Payal, DE&I is not a destination, but rather an ongoing journey. “DE&I has to be a way of life,” she emphasises. She advocates for establishing clear governance and controls to eliminate unconscious bias and ensure all decisions are based solely on merit and performance. 

Additionally, AuthBridge prioritises ongoing learning and development opportunities for all employees.We have also launched a structured and detailed induction programme called Pacesetter where anybody who joins the organisation goes through seven days of structured training,” Payal details. This comprehensive programme equips new hires with the knowledge and skills they need to succeed in their roles, reinforcing a sense of belonging and confidence from day one.

Payal acknowledges the strong foundation AuthBridge has already established in terms of diversity but she also embodies a growth mindset, constantly seeking new ways to enhance the organisation’s DE&I initiatives.

Overall, AuthBridge serves as a compelling example of an organisation that prioritises DE&I. Through a combination of strong leadership commitment, well-defined policies, and ongoing initiatives, it fosters a culture where diverse perspectives are valued, talent is nurtured, and everyone has the opportunity to thrive.

Source: People Matters

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AuthBridge helps you with fast, friendly, and comprehensive background and due diligence solutions – smarter in every way.

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Newsroom | The power of identity verification in combating underage gaming: A look at the real money gaming sector

The power of identity verification in combating underage gaming: A look at the real money gaming sector

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In the last couple of years, all sorts of gaming genres – especially the real money gaming segment, have grown by leaps and bounds. Some key findings are indicative of the fact that people are now more willing to pay to play.

As reported by the India Times, analysts have claimed that over 24 million Indians were added to the payment-linked gaming market during the lockdown. The Indian gaming market is expected to grow at a CAGR of 28-30% – from $2.8 billion in 2022 to $5 billion in 2025. The number of gamers is projected to witness an uptick from 420 million in 2022 to 450 million by 2023, which will hit 500 million by 2025. 

An EY FICCI report shows that transaction-based games’ revenue has shot up by 26% in India from 2020 to 2021.

The numbers are a clear delineation of the fact that the Indian real-money gaming industry is booming at a frenetic pace, and so are the frauds associated with it. 

Growth in gaming, or growth in gaming frauds?

Naturally, online real money gaming space attracts the attention of fraudulent players and money launderers, due to its sheer accessibility and financial transactions involved on a daily basis.

One such major fraud is ‘underage gaming’ which can put businesses on the wrong side of the law, cause regulatory and compliance costs, and also put up a question mark on the brand reputation. 

Underage gaming, it’s a significant risk! 

Not only to the gaming operators, but also to minors accessing the platform illegally. The legal age for real-money games for players is 18 years, but some tend to start real-money games at a very young age. Minors who are around 15 are more susceptible to accessing real money gaming platforms illegally.

One such major fraud is ‘underage gaming’ which can put businesses on the wrong side of the law, cause regulatory and compliance costs, and also put up a question mark on the brand reputation. 

Underage gaming, it’s a significant risk! 

Not only to the gaming operators, but also to minors accessing the platform illegally. The legal age for real-money games for players is 18 years, but some tend to start real-money games at a very young age. Minors who are around 15 are more susceptible to accessing real money gaming platforms illegally.

Underage Gaming – A real problem beyond its legal status

Underage gaming is a critical problem beyond its legal status, as underage individuals are more susceptible to developing gaming addictions. Minors indulging in real money games are exposed to potential risks, including financial losses, psychological harm, and social consequences. It puts both parties (the gaming operators and the minors) in a critical state as businesses also suffer from negative publicity for violating gaming laws and regulations.

A Regulatory Framework To Tackle Gaming Frauds – Need Of The Hour

As the RMG gaming lexicon is more vulnerable to illicit financial activities, manipulation, and unfair practices, establishing a regulatory environment becomes a pressing priority for gaming operators. Especially with the recent MeitY regulations to make the industry safe, trustworthy and compliant, gaming companies need a strict KYC mandate to only onboard verified players.

Identity verification solutions are not only helpful in tackling underage gaming but also other frauds such as multi-accounting, account takeover, counterfeited documents, money laundering, and other factors affecting the RMG businesses. 

Leading authentication solution providers offer robust identity verification solutions to enable businesses to implement multiple layers of verification, incorporating technology like facial recognition, liveness detection, etc., to filter out fraudulent users in real-time.

How are identity verification solutions helpful in tackling underage gaming?

  • Conducting Age Verification

Online gaming platforms must verify their users’ age to ensure that only individuals who meet the minimum age requirements can access the platform. Identity verification, such as document checks, NID verification, passports or driver’s licenses, can help confirm the age of the players during the registration process.

  • Enforcing Restricted Access

Identity verification solutions help businesses to enforce age restrictions by blocking access to certain features or games for users who fail to provide sufficient proof of age. It ensures that underage individuals do not have access to the restricted platforms and protects them from the detrimental impact of gaming addiction.

  • Ensuring Regulatory Compliance

Allowing underage individuals to participate in real money gaming is illegal in most jurisdictions, and therefore, strict measures for age verification becomes mandatory. With identity verification solutions plugging into the KYC process, gaming businesses can meet regulatory compliance and stay protected from substantial financial and legal risks, including hefty fines, loss of licenses, and reputational damage.

  • Mitigating Reputational Loss

Real money gaming industry relies heavily on trust and reputation. If the reputation of the gaming business is in dire straits, be it due to underage gaming, multi-accounting or any reason, it will automatically get translated to a loss of trust, decreased player engagement, and a decline in the number of legitimate players who may be hesitant to get associated with a platform with a compromised reputation.

  • Promoting Responsible Gaming

With accurate player information, operators can monitor and track player behaviour, identify patterns of excessive gaming, and intervene if necessary. It helps protect vulnerable individuals, including minors, from the potential risks of compulsive gambling.

Implementing strict identity verification measures will automatically deter underage individuals from attempting to access the platforms. Knowing that they must undergo a robust screening verification process, they will be automatically discouraged from accessing such platforms.

Enabling Safe and Ethical Gaming

Overall, underage gaming and other gaming frauds, i.e. multi-accounting, location spoofing, account takeover, bonus abuse, and money laundering, lead to legal repercussions, reputational damage, compliance costs, losing potential user groups, and ethical considerations. 

With robust identity verification measures, businesses can protect themselves from these risks and focus on adding value to the gaming community. This will also demonstrate their commitment to adhering to industry standards and guidelines and enabling a seamless gaming experience.

Source: abplive.com

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