Fake degrees, stolen employee IDs, forged documents: Who’s really getting hired?

Fraud is now a systemic issue, with entire industries unknowingly hiring individuals with fake identities. The fast-moving consumer goods (FMCG) sector is one of the worst hit, with 15.66 percent of cases flagged as potential fraud. This sector, which thrives on trust and supply chain efficiency, is struggling with fraudulent job applicants misrepresenting their experience.

"2.7 percent of all education cases were flagged as fraud. The primary reason for it was fake university documents. Almost 6.43percent of all employment checks revealed issues, primarily due to tenure gaps, tampered documents, or fake CVs," the report notes.

E-commerce, another industry heavily reliant on temporary and contract workers, is dealing with a similar crisis with employment fraud making up for almost 20 percent cases, and and e-commerce tops the fraud list at 14.46 percent. Similar to the food delivery industry, here too, a black market for selling login credentials and employee IDs exists. This allows unverified individuals to infiltrate delivery platforms, compromising security and trust, as per the report.

"Given the black market for buying and selling employee credentials, companies must implement a continuous monitoring system to verify delivery agents. This system could include a process where agents must periodically take (real-time) selfies between deliveries. This helps ensure the right person is completing deliveries," the report suggests.

In telecom, the problem is equally severe—7.67 percent of employment verification cases turned out to be fraudulent. Some job seekers in the sector were found using fake work experience to land positions requiring technical expertise, raising serious concerns about competency gaps. Meanwhile, in healthcare, 5.66 percent of flagged cases involved workers impersonating licensed professionals, directly jeopardising patient safety.

"Recently, a person who claimed to have passed the 10th grade posed as a doctor, ran a clinic for nearly 3 years and treated 70–80 patients daily. Such life-threatening risks can only be mitigated by thorough BGV and medical license checks," the report reads.

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Repeat offenders and fake degrees flooding market

Perhaps the most concerning trend is that fraud is not always a one-time mistake. In the banking, financial services, and insurance (BFSI) sector, one in three fraudsters (33 percent) had previously committed fraud—yet managed to get rehired elsewhere. Many companies lack real-time tracking mechanisms to flag repeat offenders, allowing them to simply move from one job to another with a fresh set of forged documents.

Fake educational qualifications are also flooding the system, with some universities appearing in fraudulent applications far more than others. The logistics industry has been hit hardest, with 15.79 percent of education verification cases flagged as fraudulent while 11.84 percent address case frauds.

Chennai leads the country in job application fraud with a 9.4 percent fraud rate, followed closely by Bangalore at 9.3 percent—both major employment hubs where fake resumes and degrees are alarmingly common.

“Fraud is often seen as a distant problem until it hits home. Our study shows that employee fraud isn’t just about stolen money- it’s about compromised security, lost trust, and systemic risks that cost companies four times the initial loss. In industries like FMCG and e-commerce, where fraud rates exceed 14 percent, unchecked credential misuse is a ticking time bomb. Businesses need to move beyond reactive measures and adopt proactive fraud detection to safeguard their operations," Ashok Hariharan, Co-founder & CEO, IDfy said.

The cost of ignoring the problem

While companies scramble to contain fraud, the financial consequences are staggering. Fraud doesn't just stop at the initial loss—companies lose four times the amount stolen due to legal fees, security risks, and operational disruptions.

Globally, employee fraud drained businesses of Rs 4.7 lakh crore last year.

"In 95 percent of cases, fraud is committed due to financial reasons - debt or medical emergencies. Other factors like greed, drugs, and gambling may also play a small role," per the report.

For customers, the dangers are more personal. The person delivering your food, handling your finances, or even treating you in a hospital might not be who they claim to be.