How your background verification solution can outsmart tech-savvy fraudsters

India Inc. must leverage innovative employee background verification solutions to safeguard itself against tech-savvy fraudsters.

In brief

• India's thriving business ecosystem is attracting the attention of global companies, leading to an increase in job opportunities in the country.
• To land lucrative positions in reputed companies, potential candidates may give in to the temptation of embellishing their credentials using advanced technologies.
• Tech-enabled background checks and document authentication can help companies enhance their pre-hiring and employee monitoring processes by flagging discrepancies.

India is rapidly evolving into a vibrant center for commerce, presenting a wealth of expansion possibilities for enterprises, and more organizations across the globe are aggressively looking to set up shop in India. With the rise of multinational corporations, start-ups, Indian companies’ expansion and Global Capability Centers (GCCs) in India, a thriving ecosystem, and substantial investor interest, the Indian economy is showing no signs of slowing down. India has demonstrated its strength as one of the largest exporters of IT and BPO services globally. Job trends in India reflect a rapid increase not only in Tier 1 cities but also in Tier 2 and Tier 3 cities.

Companies aspire to integrate the Indian workforce and business practices with global markets, enhancing cross-cultural exchanges and international business acumen. Lucrative policies and trade agreements are further adding to India's economic potential. However, while India’s rapid economic growth presents vast opportunities for organizations, it also brings challenges. Businesses must navigate a complex landscape that can impact their integrity and workforce stability, potentially affecting reliability and overall performance.

Along with this, there also comes a multiplicity of hiring challenges. Seldom discussed but always a risk is employment fraud. The competition among the younger workforce and their over-zealousness to get into reputed organizations may drive them to misstate their employment and education credentials. 

What background fraud risks do employers face?

With markets on the upward tick, a myriad of job opportunities has opened, but remote hiring in the hybrid workplace presents continuous challenges, and there is a gap between companies hiring requirements and qualifying candidates.

Candidates are not shying away from obtaining fake employment certificates from paid agencies, manipulating their resumes, forging experience certificates, providing false details on Form 16, hiding employment history, and obtaining certificates from unrecognized institutes. There is even an increase in the use of deepfake technology to impersonate job candidates in remote interviews.

According to the Association of Certified Fraud Examiners (ACFE) 2024 Report, the most common methods used by perpetrators to conceal fraud include creating fraudulent physical documents (41% of cases), altering physical documents (37% of cases), creating fraudulent electronic documents (31% of cases) and altering fraudulent electronic documents (28% of cases). These fraudulent practices indicate that even though many transactions have moved to digital formats, physical evidence is still an important part of fraud prevention, detection, and investigation.

Given the rising incidence of employment fraud and the tech-forward ways devised by fraudsters, it becomes imperative for companies to maintain stringent checks over the entire employee lifecycle—right from hiring to annual performance reviews, exit interviews, and workplace behavior.

How to weed out bad apples at a pre-offer stage?

While each company is coming up with its own set of rules to regulate employee conduct and is drafting specifically defined hiring protocols, they also need to ensure regular monitoring to ensure compliance. Technology-enabled employee background checks are not only helping organizations in employment fraud prevention but also helping them determine if a prospective candidate is the right fit for the organization. 

Many companies have started using tech-enabled document authentication tools as a precursor to the background verification process. Through this screening technology, incidences of candidates submitting manipulated documents are identified right at the pre-offer stage, thus reducing costs and efforts of carrying out an extensive background verification process.

Traditional employee background check methods are less effective in addressing the concerns posed by fraudsters who are leveraging cutting-edge technologies such as artificial intelligence, voice modulation, deepfakes, and high-end document forgery software to con unassuming organizations that are on the lookout for experienced and talented professionals. Tech-led employee background checks cut out the biases that human-operated processes are prone to. This helps companies with candidate validation by assessing them on their merit and making an informed decision that is in alignment with their company’s ethos. The AI-driven recruitment solution also presents insights at a glance, making it easier to access pertinent data as needed and maintain operational integrity. 

The road ahead

As India continues to evolve as a key business hub, the demand for reliable and trustworthy employees will only increase. Employers must proactively address potential risks through robust background screening practices that align with legal requirements and ethical standards. By investing in thorough vetting processes, businesses can protect themselves from potential liabilities and contribute to a trustworthy business environment. 

Artificial intelligence and automation are significantly reducing turnaround times and costs. Automated data validation ensures that candidate information is checked against multiple databases in real-time, eliminating human errors and improving accuracy. Furthermore, the importance of real-time verification can be witnessed through background checks that are conducted through API integrations to enable instant verification, enhancing hiring agility for companies worldwide. These modern methods of performing digital verifications will facilitate the faster deployment of candidates, thus enhancing the experience and productivity of both applicants and the companies.

Ultimately, companies will foster long-term success and sustainability by leveraging advanced tech-enabled employee background credential checks to brace against hiring risks, organizational fraud, behavioral issues, and non-compliance with the code of conduct.  

The article was first published on Can your background verification solution outsmart tech-savvy fraudsters? — People Matters