Hiring Fraud Persists: White-Collar & Gig Worker Discrepancies Rise

AuthBridge's H1 FY26 report reveals ongoing hiring discrepancies in India, with a 4.33% rate for white-collar roles and 5.61% for gig workers. Employment history, address, and education checks show significant gaps, posing a structural challenge.

The AuthBridge Workforce Fraud Files for the first half of fiscal year 2026 show that hiring discrepancies continue across India's labour market. White-collar roles recorded a discrepancy rate of 4.33 per cent in background verification, while the on-demand or gig workforce reported a higher rate of 5.61 per cent. These findings are based on data captured across identity, employment history, education, and criminal record checks.

Ajay Trehan, CEO and Founder of AuthBridge, stated that these gaps remain a structural challenge for the industry. "The H1 FY26 Workforce Fraud Files clearly show that hiring-related discrepancies remain a persistent and structural challenge. Despite faster and more digitised hiring workflows, we continue to see gaps in fundamental checks such as employment history, address, and education," Trehan said.

Discrepancies in White-Collar Hiring

Employment history was the most frequent area of discrepancy for white-collar employees, reaching 11.15 per cent. Address verification followed at 7.68 per cent, with education checks at 4.49 per cent and reference checks at 4.17 per cent. Drug screening and criminal record checks showed lower discrepancy rates of 1.87 per cent and 0.50 per cent, respectively.

Trehan noted that these issues affect more than just the hiring timeline. "These are not minor inconsistencies; they have direct implications for organisational risk, compliance, and trust. The data reinforces the need for organisations to embed background verification deeply into their hiring and workforce management strategies, rather than treating it as a one-time or post-hiring formality," he said.

Risks in the On-Demand Ecosystem

In the on-demand ecosystem, address verification discrepancies were recorded at 9.70 per cent. Identity discrepancies stood at 2.53 per cent, and criminal record discrepancies were observed at 2.23 per cent. These figures highlight risks in roles that involve field operations and direct customer interaction.

Industry-Specific Trends

Industry data shows that address discrepancies were highest in the telecom sector at 15.42 per cent, followed by IT at 12.02 per cent and pharma at 11.21 per cent. Employment verification discrepancies were most significant in retail at 16.37 per cent and telecom at 14.32 per cent. CV validation issues, which involve inconsistencies between resumes and verified data, were most prominent in the IT sector at 12.80 per cent.

Report Recommendations for Employers

The report recommends that companies start screening processes before making job offers to avoid restarting the hiring cycle if a candidate fails verification. It also suggests periodic screening and ongoing monitoring, rather than a single check at the time of onboarding, to manage long-term risk and maintain a credible workforce. (ANI)

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