Employment Fraud in India Inc

As technology adoption accelerates across Indian organizations, there is an increasing challenge of employment fraud. This includes fraudulent employment records, falsified educational credentials, dual employment, moonlighting, and the use of deepfakes in online interviews.

Key Findings from EY Report

• The report titled 'The First Firewall: Background checks as India Inc’s frontline defence' is based on one million background checks conducted by EY over the last year.
• Employment-related discrepancies are most prevalent in sectors such as IT/ITeS, financial services, healthcare, professional services, and BPO/KPO/GCCs.
• Employment fraud poses significant risks and is growing across sectors.

Sector-specific Insights

• Technology Sector: Increasing incidents of moonlighting.
• Healthcare: Rising credential fraud due to talent shortages, necessitating license validation to reduce clinical errors.
• Financial Services: Ensuring employee integrity is crucial for protecting confidential data.

Statistics on Employment Discrepancies

• 75% of candidates in healthcare submitted fake employment documents.
• 84% of candidates in financial services overstated their experience.
• 45% in the IT sector were found moonlighting.
• 38% in BPO/KPO/GCC sectors failed to provide mandatory documents.
• 50% of education-related frauds in financial services involved fake education certificates; 88% in professional services had fake documents.
• 84% in healthcare obtained certifications from non-accredited institutions.

Demographics of Fraudsters

• 96% in healthcare, 88% in financial services, and 79% in IT/ITeS were experienced professionals.
• Falsified documents are inexpensive, easy to procure, and can be generated quickly.

Response Strategy

• Background checks have become essential across all sectors.
• HR departments are increasingly adopting technology-led verification solutions to speed up processes.