BGV

INSIGHTS
FY 2024-25
Choose the right checks for your industry
Foreword
A few years ago, background verification was considered a formality. It used to be
tedious, expensive and often spanned weeks or months before yielding any results.
Consequently, only large enterprises could afford all the checks, that too only for select
senior roles.

However, things are changing!

Now, even startups consider background verification an important practice for each
new hire. The shift is mainly due to rising challenges in hiring and evolving fraud, which
increased the demand for BGV, and thus came the infusion of technology in BGV.

Despite its evolution, background verifications are still a conundrum for companies.

While some struggle with integrating it into their hiring process, others find it challenging
to balance the cost and prioritization of the various checks involved.

Our report offers insights to both

1. Those seeking consultation on BGV implementation

2. Those aiming to elevate their processes to industry benchmarks.

What’s in this book?
Index
Introduction 01

Common Background Checks to hire right 02

IDfy’s Verification Priority Matrix 03

BGV in Review 05

A deep dive into each industry

Banking, Financial Services & Insurance (BFSI) 06

Consulting 07

Consumer Products 08

Healthcare 09

IT/ITES 10

Telecommunications 11

E-Commerce & Logistics 12

Staffing and Recruitment 13

What Next? The Way Forward 14

The best in the business rely on us 16

In the last year, we examined around 2.5
million background verifications across
multiple industries. Through this analysis,
we observed trends that various sectors adopt for
background verification. We collated the insights from
these trends to form a comprehensive book that shows
how industries choose specific checks suitable for their
needs, based on the challenges they face. We also touch
upon the common challenges faced by each industry
when hiring candidates.

The intense competition in the job market causes

job seekers to resort to fraudulent practices such as
misrepresentation, impersonation, and fabrication
to meet eligibility criteria. Uncovering such frauds
requires thorough verification across all aspects of each
employee. However, in reality, this is rarely possible due to
budget constraints.

This leaves you with a few questions:

Which checks should I prioritize?

Should I run BGV on all my employees

or just on a random sample size?

What is the optimal frequency for

conducting these checks?

This ebook serves as your guide, providing answers to

these questions. It will help you prioritize your decisions
by presenting distinct trends identified across industries.

We discuss high-level BGV trends and delves into

industry-specific practices, answering these 3 questions
to help you plan and hire better!
1
The 4 most commonly conducted
Background Checks reveal everything you
need to know to hire right
Criminal verification
Criminal verification is the process of examining
an individual’s criminal records to evaluate any
court cases or FIRs against the new candidate.
A thorough scan of 30 Cr+ court records and
FIRs can reveal the entire criminal history of
an employee.
Address verification
Address verification confirms the accuracy and
authenticity of an individual’s reported residential
address.
Today, more than 70% of all address verifications
happen digitally over a video call. This is similar
to the traditional verification process but is
performed over a video call, thus reducing TAT
and insufficiencies drastically.
Qualification verification
Qualification verification is the process of verifying
the educational background of an applicant by
contacting the respective universities.
With the candidate’s consent, an API-driven
approach can also be used to hit Digilocker
directly and verify their education documents,
without the need for human intervention.
Experience verification
This entails verifying an individual’s work history,
including past and present positions and
responsibilities, through document authentication
and reference checks.
Digital verification can be done using an
employee’s PF details, with the UAN providing a
detailed record of their employment history, along
with the duration of positions held.
2
IDfy’s Verification Priority Matrix
This Matrix plots each of the above-mentioned checks on two parameters:

Frequency Severity
This talks about how often a particular The % of red cases for any check is an
check is conducted in the industry. indicator of its severity.

Visualize
In X Industry, 1000 qualification checks
were conducted in a month, while
the number for address checks was
200 for the same month. This makes
qualification checks more frequent in
that industry.
Visualize
In Y Industry, 80 out of 500 legal history
checks were red in a month, while the
number for address checks was only
10 out of 500 for the same month. This
makes legal history checks more severe
in that industry.

High Frequency

Caution Danger
Low Severity

H igh Severity

Skip Trap

Low Frequency

3
Here’s what each quadrant means

!
High frequency, High frequency,
low severity high severity

Checks in this quadrant are the backbone

These checks fall into the ‘Better safe
of your verification process, they are the
than sorry’ category. While conducted
obvious ones! They have a high frequency
frequently, they do not yield a high rate
and severity. Ensuring these checks are in
of red cases. However, even a couple of
place will provide the highest safety to your
red cases pose a significant threat to the
hiring process.
reputation of the company.

Low frequency, Low frequency,

low severity high severity
Checks in this quadrant have low
Checks in this category have low
frequency but a high red percentage.
frequency as well as low severity.
They demand more attention,
Consequently, companies often choose
emphasizing the need to prioritize and
to overlook them due to their perceived
increase the frequency.
lower importance.

4
BGV in Review
The BFSI, e-commerce, and staffing industries
stood out with the highest number of red cases,
comprising an astonishing average of 7.8%
among all the cases.
Let’s look at the top reasons for
red cases in each of the standard
checks.

Address checks
One of the top reasons for red cases across all
Reason:
industries was employment fraud, including fake Shifted from the given
documents and the submission of certificates address
from blacklisted or unregistered companies.

Experience checks
Reason:
Fake/forged employment
documents

Criminal checks
Reason:
Rash driving/drunk driving

Qualification checks
Reason:
Mismatch in details
submitted

Now, let’s delve into each industry

and look at some intriguing insights!

5
Banking, Financial Services & Insurance (BFSI)
Banks have more than 70% of their employees involved in direct cash transactions. Ensuring that these
employees are thoroughly verified is mandatory in this industry.

IDfy’s Verification Priority Matrix

High Frequency

Address
! Criminal

H igh Severity
Low Severity

Experience

Qualification

Low Frequency

Reasons why address checks are red

Address verifications tend to
Shifted from the given address have the highest red cases
Untraceable address
10.7%
Reasons why experience checks are red
followed by experience
Incorrect last working day checks
Discrepancy in the date of joining
FNF/Exit formalities pending 9.5%
Incomplete/Fake employment documents.

Revealing stat
While legal history checks seem to have the lowest % of red cases in this industry, it remains one of the
most frequent. This is because, given the number of people who have direct access to customer details
and money, there’s plenty of opportunity for them to defraud you!

Recommendations
For efficient address verifications, we recommend incorporating live video calls into the process.
It offers a swift TAT, often as little as 10 minutes, and enables the capture of latitude/longitude
coordinates using pin location. Implementing this practice can significantly contribute to the
reduction of both TAT and amber rates.

BFSI companies should prioritize criminal verifications to prevent risks associated with candidates
in adverse cases, alongside credit history checks. Senior roles may require additional checks like
social media and directorship assessments for multi-level integrity, especially in public-facing
positions.
6
Consulting
Consulting is the most sought-after career choice for students across top business schools. It is
lucrative and promises a good career for those cut out for it. That being said, the hiring criteria for
consultants are quite demanding.

As a result, many applicants try to meet these criteria by exaggerating or lying. This creates an added
burden on recruiters to separate the wheat from the chaff.

IDfy’s Verification Priority Matrix

High Frequency

Experience
Qualification

H igh Severity
Low Severity

Criminal

Address

Low Frequency

Most red BGV cases in Consulting come from Employment

checks. Strange, isn’t it?
Experience checks tend
to have the highest red %
Reasons for red compared to other checks in
Consulting candidates are more likely to submit fake this industry - as high as
experience certificates and documents to meet role
qualification criteria. 3.02%
Recommendations
Consider running pre-onboarding, instant checks using the candidate’s PF details to verify
whether the candidate has worked in the companies mentioned in their CV. You can thus eliminate
candidates who have exaggerated details on their CVs before they join the company itself. Then,
you can run deeper checks after they have joined!

Most BGV companies only check if a candidate has worked at a particular company. We
recommend that you go a step further to check the company’s authenticity. This will help you
identify such types of fraud without impacting the TAT.

7
Consumer products
With an expected growth rate of 14.7% until 2025, the consumer products industry requires a steady
inflow of talent across the board - right from frontline sales to supply chain management. This speed of
hiring requires rapid checks using cutting-edge ID and face verification solutions.

This sector cannot afford to wait 45 days for a police clearance certificate or even 15 days for education
verification reports.

IDfy’s Verification Priority Matrix

High Frequency

Experience

Qualification

H igh Severity
Low Severity

Address

Criminal

Low Frequency

Reasons for these checks turning up red

Experience checks are the
Incomplete/Fake employment documents. most likely to be red in the
Incorrect first and last working day industry - as high as
FNF/Exit formalities pending
7.78%
Recommendations
To meet rapid hiring needs, consider leveraging digital verification solutions. This will help you
transform a process that usually takes a week to a TAT of just one day.

The FMCG sector faces higher amber cases compared to other industries. To mitigate these
cases, consider implementing EPFO-based checks for employment and education verification
via Digilocker for efficient resolution.

8
Healthcare
Healthcare companies source talent from remote corners of the country. The growth in this industry is
significant, driven largely by a highly qualified and trained staff.

This industry sees a strong trend of candidates misrepresenting their salary details for multiple reasons
such as competitive pressure.

As a result, employment-related details need special attention in this sector.

IDfy’s Verification Priority Matrix

High Frequency

Criminal

Qualification

H igh Severity
Low Severity

Experience

Low Frequency

Here’s why these checks are red

Incomplete/Fake employment documents Experience checks are most
likely to be red in the industry
Incorrect first and last working day - as high as
FNF/Exit formalities pending
4.55%
Recommendations
Since candidates tend to misrepresent their salary information in the healthcare industry, we
recommend you opt-in for salary verification in addition to all the other checks. This will allow for
transparency during the employee screening process.

There’s a strong trend of people shifting from their hometowns to cities. When they do so, they often
fail to update their addresses. Not just that, in this sector, individuals often study or work in remote
locations. So, verifying any of these details can take weeks or, in some cases, prove impossible
due to non-existent records. We recommend that you opt for digital verification solutions to avoid
this problem.

9
IT/ITES
By its very nature, technology is the pillar of the IT/ITES industry. Having the right skills and knowledge
is critical to working here. Naturally, candidates are inclined to use fraudulent certificates and claim
certifications they have never achieved.

Apart from that, as per a TOI report, about 73% of India’s workforce is inclined to take on multiple jobs
for financial benefits, and this is most common in the IT industry.

IDfy’s Verification Priority Matrix

High Frequency

Experience
Qualification

H igh Severity
Low Severity

Criminal

Address

Low Frequency

Reasons for these checks to turn up red

Incorrect last working day Experience checks are most

likely to be red in the industry
Discrepancy in the date of joining - as high as
FNF/Exit formalities pending.
Incomplete/Fake employment documents. 3.37%

Recommendations
In an era of hybrid and remote work, routine checks for moonlighting and dual employment can
be a robust method to protect your company’s proprietary information and client data from being
leaked.

Most companies in the IT sector should take address verifications as a mandatory check as it can
minimize chances of fraud. For efficiency, consider adopting Digital Address Verifications.

10
Telecommunications
20% of the data breaches in this industry are a result of misuse of sensitive information by an
insider. This industry is highly concentrated, with only a few dominant players. So, you need to
ensure that you don’t miss out on big clients because of fraudulent employees and negligence in
background checks.

IDfy’s Verification Priority Matrix

High Frequency

Experience
Address

H igh Severity
Low Severity

Criminal

Qualification

Low Frequency

Reasons for these checks to turn up red

Experience checks are most
Incomplete/Fake employment documents likely to be red in the industry
- as high as
Incorrect last working day
Company doesn’t exist
Candidate still active in the previous company 5.73%

Recommendations
We recommend that you mitigate the risk of wrong hires here by implementing EPFO-based
checks for employment verification.

Considering that fake documents are the number one reason for cases to show up red, we
recommend that you go a step further to check the authenticity of the documents and the
company itself. This tends to be taken for granted since most BGV companies usually only check
if a candidate has worked at a particular company and not the validity of the actual documents
themselves.

11
E-commerce & Logistics
In e-commerce, 70% of background verifications are conducted on off-roll employees. That said,
the hiring of gig workers is seasonal and usually spikes right before the festivals. With the need to
scale, and the seasonal demand for delivery partners outpacing supply, e-commerce players tend to
compromise on quality to meet hiring targets.

IDfy’s Verification Priority Matrix

High Frequency

Criminal
ID checks

H igh Severity
Low Severity

Address

Low Frequency

Reasons why address checks are red

Address checks in this sector
This is largely due to gig workers coming from remote have the highest problematic
locations where physical address verification is difficult. In cases at
some cases, the address is non-existent, or the candidate
has left their job for better opportunities before the 15.25%
verification could be done.

Recommendations

In an industry where delivery partners can switch companies with the click of a button, quick
verification is extremely important!

We recommend you create a process through which you can onboard delivery partners within 30
minutes. Usually, ID verification, legal history, and other database checks have an extremely low
TAT, ensuring riders and delivery partners can begin working on the same day.

12
Staffing and Recruitment
You can maintain your credibility only when you hire the right people both for yourself and for your
clients.

IDfy’s Verification Priority Matrix

High Frequency

Address

H igh Severity
Low Severity

Experience

Criminal
Qualification

Low Frequency

Here’s why address checks end up being red

Address verifications tend to
Shifted from the given address
have the highest red cases
Untraceable address

For Experience checks

15.48%
followed by experience
Incorrect last working day
checks
Discrepancy in the date of joining
FNF/Exit formalities pending 14.62%
Incomplete/Fake employment documents

Do you know what’s so ironic about employment checks in staffing?

Candidates in staffing jobs are 6.5 times more likely to commit employment fraud than those in other
industries.

Recommendations

Enhance address verifications by incorporating live video calls, offering a quick TAT as fast as 10
minutes and enabling accurate latitude/longitude coordinates capture. This practice significantly
reduces TAT and amber rates.

Success in the staffing industry requires the ability to handle fundamental checks like ID verification
and criminal history checks. Meeting TAT requirements while doing so, is crucial to building trust.

Increase client trust in staffing services by opting for a broader range of checks, locally and globally.
This includes database checks, criminal verifications, address verifications, and employment and
education checks in key global regions.
13
What Next? The Way Forward
As technology and processes evolve, so will the number of individuals seeking employment or
validation at any cost. Organizations, however, need to be receptive to the realness of the dangers and
agile enough to use the solutions at hand.

Organizations must also keep employee experience at the forefront while designing their BGV
processes.

Here are a few action points you should consider implementing in your BGV process

Data-Handling Integration with other

Compliance
In light of the DPDP act coming into effect, invest
in consent-management products to ensure
secure data transfer between partners. Mitigate
the risk of mishandling sensitive information and
stay compliant with evolving regulations.
HR platforms
One way to do that is the integration of a
company’s BGV portals with the company’s
HRMS, ATS, and other employee-related
systems. This improves employee experience
because the employees are no longer required
to fill out multiple forms and repeatedly upload
the same documents on various portals.

Combat Deep Fakes with Rapid Bulk Onboarding

Liveness Checks
Stay vigilant against deep fakes and
impersonations with innovative liveness checks.
This can be done through continuous, random
checks, especially on gig workers, to ensure that
the person you have onboarded and verified is
the same person who has shown up to do that
job. Safeguard your organization from potential
risks by incorporating advanced technologies
into your background verification process.
with BGV Checks
Consider re-evaluating internal processes for
pre and post-recruitment screening to optimize
workflows. A 6-hour background check (BGV) for
quick and accurate bulk onboarding of delivery
and driver partners can help. This also helps you
screen white-collar employees before they join
your company, ensuring only the right people get
access to systems within the organization.
14
Proactive Employee Effortless Integration with Pre-built
Monitoring BGV Journeys

Adopt Infinity Checks for proactive Simplify the implementation of background

employee monitoring. Regular checks on
your current employees to identify repeat
defaulters and mitigate the risk of employee
fraud.
verification systems with identity-management
products offering plug-and-play capabilities.
Benefit from pre-built journeys and easy API
integration, saving time without compromising
accuracy.

Implementation of a BGV process is a lengthy engagement that involves multiple teams and digital
systems.

IDfy’s catalog of products comes with plug-and-play capabilities, pre-built journeys, customization
capabilities and easy integration through APIs. Thus, we not only cut down on precious time but also
manage employee experience, without compromising on accuracy or coverage.

IDfy has been at the forefront of creating products that help solve different use cases.
While technology is an enabler, organizations will also need to possibly rejig their internal processes of
pre & post-recruitment screening to minimize the amber and red cases.

The onus will be on the CHROs to implement processes of governance that balance caution with
being employee-friendly.

15
The best in the business rely on us

16
Enterprise BGV Solutions
Onboard employees confidently with IDfy

With 12+ years of experience and 8 million background checks completed, IDfy is an
industry leader in employee background verification.

IDfy’s BGV solution is digital first. It really is our tech-focus that helps us offer the most
accurate BGV screening with the fastest turnaround time in the industry. Don’t just take
our word - try us out!

Companies like Zomato, ICICI Bank, TATA AIG, Godrej, and many more, trust us to help
them onboard their white collar and blue collar workforce. With IDfy keeping the bad
actors out, you can truly onboard employees and partners with confidence.

Identity & Address Verification | Education & Employment Check | Criminal

Verification | Moonlighting & Social Media Checks

IDfy is an Integrated Identity Platform that helps enterprises eliminate fraud and
establish trust through products and solutions for KYC, KYB, Background Verification,
Risk Assessment and Digital Onboarding.

shivani@idfy.com www.idfy.com