BFSI Sector Faces Rising Hiring Risks: Workforce Fraud Files 2025 Highlights Alarming Trends

The Banking, Financial Services, and Insurance (BFSI) sector in India is facing significant hiring discrepancies, exposing institutions to operational, financial, and regulatory risks, according to AuthBridge’s Workforce Fraud Files 2025.

The report findings, based on background verification data collected between October 2024 and March 2025, highlighted critical vulnerabilities in current hiring practices. It was found that the sector recorded an overall discrepancy rate of 11.69%, with employment misrepresentation emerging as the biggest challenge, making up 29% of verified cases.

The key patterns uncovered in the report include:

• Employment misrepresentation: 29%
• Address verification failures: 16.3%
• Education discrepancies: 6%
• Database inconsistencies: 3.3%

These findings raise serious concerns for BFSI institutions operating under RBI, IRDAI, and SEBI guidelines, where rigorous employee screening and compliance are non-negotiable.

The report also highlights sector-specific risks, including inflated designations in compliance and risk-related roles, fabricated certifications such as CFA and FRM, and undisclosed conflicts of interest.