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India’s retail sector is grappling with widespread hiring fraud, with one in six hires misrepresenting their employment history, a new study has revealed. According to technology company AuthBridge, the sector recorded an overall discrepancy rate of 10.3%, highlighting significant risks during the hiring verification process.
The report, Workforce Fraud Files H2 FY25, which analysed six months of background verification data from October 2024 to March 2025, found that employment verification discrepancies in the retail sector stood at 17.6%. The most common issues included inflated job roles and responsibilities, misrepresented employment tenures, and unverifiable previous employers.
Address verification failures were also reported in 9.4% of cases, often due to outdated or temporary addresses, shared accommodations that complicated validation, or referees being unwilling to confirm details. Reference checks flagged concerns in 2.13% of cases, where former supervisors either declined to comment or contradicted candidates’ claims.
Educational verification discrepancies were observed in 4.8% of cases, with candidates misrepresenting diplomas or incomplete courses. Meanwhile, database and ID verification flagged mismatches in 1.79% of cases, including duplicate records and inconsistencies.
“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,” said Ajay Trehan, Founder & CEO, AuthBridge.
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