Moonlighting fraud in the tech world has been gaining attention, but a new case has brought this issue to the forefront in a way no one expected. The tale of how one individual deceived multiple startups by secretly working at several companies simultaneously is a wake-up call for all businesses. This blog will walk you through the details of the scam, its widespread impact, and what companies can do to avoid falling victim to similar deceptive practices.
How A Talented Engineer Became a Serial Moonlighter
Soham Parekh, an Indian software engineer, had an impressive resume that made him a preferred candidate for several top-tier US-based startups. With a degree from the University of Mumbai and a master’s from Georgia Tech, he looked like the ideal hire. His skills in backend development, cloud services, and full-stack engineering were just what many fast-growing companies were looking for.
However, behind his perfect CV was a fraud waiting to be unearthed. Parekh secretly held multiple roles simultaneously, working at various companies concurrently. He convinced employers he was committed to each job while dividing his time and attention between multiple full-time roles. His charm during interviews made him a standout, but his split focus meant none of his employers were getting the full value of their hire.
The First Red Flag: An Unusual Termination
The first sign that something was not quite right came when Suhail Doshi, co-founder of Mixpanel, hired Parekh. Doshi was initially impressed by Parekh’s performance, but things quickly started to reveal themselves. After just one week at Playground AI, Doshi found that Parekh’s work ethic was lacking. Parekh was distracted, unreliable, and unable to fully commit to the tasks at hand. Doshi’s suspicions grew, and after further investigation, he realised Parekh had been moonlighting at other startups while working for him.
Within a week, Parekh was let go. But Doshi wasn’t done yet. After his own experience, he felt the responsibility to warn other tech entrepreneurs who might fall into the same trap.
How Did This Moonlighting Scam Get Exposed?
Suhail Doshi didn’t keep his suspicions to himself. He decided to go public, posting on a popular social media platform to warn others in the startup community. His posts quickly went viral, shedding light on the extent of the fraud.
In one of his posts, Doshi shared Parekh’s resume and called out the discrepancies he’d found. He went as far as to claim that 90% of Parekh’s resume was likely fake. He had tried to give Parekh a second chance, hoping the techie would change, but it was clear that the fraud continued unabated.
Doshi’s posts served as a call to action for other startup founders. His transparency led to a slew of discoveries from other businesses that had been similarly deceived.
The Massive Extent Of The Moonlighting Scam
As Doshi’s posts gained traction, more startup founders came forward to share their experiences with Soham Parekh. Nicolai Ouporov, CEO of Fleet AI, confirmed that Parekh had been juggling multiple jobs at once. He wrote, “He’s been doing this for years.”
Matthew Parkhurst, CEO of Antimetal, also shared his experience, revealing that he had hired Parekh in 2022 but quickly realised something was off. “Soham was our first engineering hire… We realized quickly that he was working at multiple companies and let him go.”
Justin Harvey, co-founder of AIVideo, explained how Parekh nearly secured a position at his company: “He crushed the interview. We were THIS close to hiring him.” But the revelations from Doshi’s posts led Harvey to reconsider, preventing the company from making a costly mistake.
Why Moonlighting Fraud Is More Dangerous Than It Seems
While some might argue that moonlighting is just an unfortunate consequence of the gig economy, Parekh’s actions went beyond mere moonlighting. He was actively deceiving his employers, manipulating the system for personal gain, and misleading multiple startups into believing he was working exclusively for them.
The problem isn’t with employees having side jobs, but with deceitful moonlighting, where individuals take on multiple full-time jobs without informing their employers. This situation is particularly dangerous for startups, where each hire is a vital part of the team’s success. When someone is working for several companies at once, the consequences can include:
- Reduced productivity: An employee split between several roles can’t give their full attention to any single company.
- Security risks: Sensitive information can be mishandled, especially if the employee has access to multiple company systems.
- Trust issues: The lack of transparency breeds distrust, which can harm team dynamics and morale.
What Can Employers Learn From This Moonlighting Scam?
The case of Soham Parekh has brought moonlighting fraud into sharp focus, forcing companies to confront a growing risk in the hiring process. So, what should employers take away from this scandal?
First and foremost, due diligence in the hiring process is essential. Employers must verify not just resumes but also the employment history of potential hires. They must look for signs of potential deception, such as inconsistent timelines or overlapping job roles.
Additionally, it’s crucial to set clear policies around secondary employment and encourage transparency in the workplace. Employees should feel comfortable disclosing any outside work they might be involved in, especially if it affects their performance or commitment to the company.
How AuthBridge Can Help Prevent Similar Scams
AuthBridge offers a powerful solution to ensure that companies are hiring employees who are committed and trustworthy. By integrating background verification tools into the hiring process, businesses can significantly reduce the risk of hiring someone involved in moonlighting fraud.
- Employment History Checks: AuthBridge thoroughly verifies an applicant’s employment history, ensuring that claims of previous employment are legitimate.
- UAN Verification: Verifying the Universal Account Number or UAN details can highlight instances of dual employment, revealing whether an individual is secretly working for multiple employers.
- Form 26AS Checks: This check helps employers cross-check an employee’s income tax details to verify employment claims and spot inconsistencies.
- AI-Powered Anomaly Detection: AuthBridge uses AI to analyse employment patterns and flag any irregularities that might indicate deceptive practices like moonlighting.
Conclusion
The Soham Parekh scam highlights a serious threat in today’s job market. As remote work becomes more prevalent, it’s easier for individuals to hide dual employment, causing major risks to businesses. The tech industry, in particular, is vulnerable, as many startups rely on a small team of trusted individuals.
Employers must act now to protect themselves. By using tools like AuthBridge’s background verification services, businesses can ensure that they are hiring dedicated, trustworthy employees who are committed to their roles. Implementing strong verification processes will help prevent fraud and ensure that your company is not the next victim of a moonlighting scam.
