New Delhi [India], May 30 : With the rising employment fraud across all sectors in India, Ernst & Young's (EY) study named 'The First Firewall: Background checks as India Inc's frontline defence' suggests an urgent need to have technology-driven background checks as critical for safeguarding hiring integrity.
The report sheds light on the fact that most of the employment frauds are being committed by experienced professionals. Statistically, 96 per cent in healthcare, 88 per cent in financial services, and 79 per cent in IT/ITeS, underscoring the scale and sophistication of the problem.
"Employment fraud has been a longstanding menace in India. To tackle this, today, background checks have become a non-negotiable across sectors. As we rapidly adopt technology in the workplace, the risks associated with it are evolving equally fast," said Arpinder Singh, Global Markets and India Leader, Forensic and Integrity Services, EY.
EY study shows that the healthcare sector saw 83 per cent of flagged candidates fail basic background checks, with 75 per cent submitting fake employment documents.
In financial services, 84 per cent of discrepancies stemmed from candidate misinformation, including inflated salaries and unapproved degrees.
In IT/ITeS, 45 per cent of flagged candidates were found to be moonlighting, often with parallel employment or active GST registrations.
"Validating the licences of healthcare professionals is essential to reduce clinical errors. In financial services, ensuring employee integrity protects confidential data. In today's rapidly evolving IT industry, background verification is vital for building a reliable team. These practices help organizations thrive by upholding core values, maintaining ethical standards, and making informed hiring decisions," said Amit Rahane, Partner, Forensic and Integrity Services EY.
According to the report, manual hiring processes are no longer sufficient. With fake documents readily available online and deep fakes used in virtual interviews, traditional verification methods fall short.
EY stresses that AI-powered and automated background checks are essential to detect document anomalies, validate credentials, and ensure candidate authenticity.
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