Mumbai : AuthBridge, India’s leading authentication technology company, has unveiled its latest Workforce Fraud Files – Issue H2 FY’25, analysing six months of comprehensive background verification data from October 2024 to March 2025. The report reveals significant instances of misrepresentation in the retail hiring space, highlighting critical risks and challenges within one of India’s largest and most dynamic employment sectors.

Key Findings – Retail:

The Retail sector recorded a 10.3% overall discrepancy rate, indicating notable risks during the hiring verification process.

  • Employment verification discrepancies stood at 17.6%, with common issues including:

              o   Inflated job roles and responsibilities

              o   Misrepresentation of employment tenure

             o   Claims of unverifiable previous employers

  • Address verification failures were recorded at 9.4%, often due to:

             o   Candidates submitting outdated or temporary addresses.

            o   Shared accommodations, which complicated the validation process.

            o   Referees being unable or unwilling to confirm address details.

  • Reference checks raised concerns in 2.13% of cases:

            o   Former supervisors either declined to comment or provided contradictory       information compared to the candidates’ claims.

  • Educational verification discrepancies were observed at 4.8%,

            o   Mostly involving false claims about diplomas or incomplete courses.

  • Database red flags: Minor mismatches or flags in database and ID records accounted for 1.79%, including duplicate records or inconsistencies.

Key Challenges:

  • High workforce churn and shared residences: These factors complicate verification processes in the retail sector, leading to higher discrepancies in address and identity checks.
  • While not directly tied to background verification measures, reports and industry sources emphasise retail’s exposure to insider theft, shoplifting, and fraudulent transactions by employees. These issues correlate with risks arising from inadequate background screening practices.
  • Cybersecurity and data breach risks: Though tangential, the retail sector remains vulnerable to cyberattacks that impact customer and company data, adding a layer of operational risk alongside workforce misrepresentation.

These discrepancies underscore the critical need for rigorous background checks and role-specific verifications in retail hiring to mitigate risks related to misrepresentation, identity fraud, and operational integrity.

Commenting on the report findings, Mr. Ajay Trehan, Founder & CEO, AuthBridge, said, “India’s retail sector is witnessing rapid growth, creating numerous employment opportunities alongside rising risks of hiring discrepancies. Misrepresentations in backgrounds can harm both business integrity and customer trust. To mitigate these risks, retailers must adopt advanced, continuous verification solutions tailored to specific roles. Leveraging AI-powered, real-time checks will help build a reliable workforce, reduce operational challenges, and create a safer environment for employees and customers alike.”

The report underlines the urgent need for instant checks, role-based verification, and ongoing re-screening in retail hiring, where frontline roles remain highly vulnerable to inflated experience claims, unverifiable addresses, and false educational credentials. The full report is available for download at https://authbridge.com/workforce-fraud-files-2025/. 

With a global presence across 100+ countries and a track record of conducting 15 million verifications each month, AuthBridge continues to lead the global identity verification landscape, combining cutting-edge AI with responsible innovation.