Retail Hiring Risks on the Rise: AuthBridge Report
Mumbai: A recent report by AuthBridge, India’s leading authentication technology company, has flagged a surge in retail hiring risks, with 1 in 6 hires misrepresenting their employment history. The report, Workforce Fraud Files – Issue H2 FY’25, analyzed six months of comprehensive background verification data from October 2024 to March 2025.
Key Findings
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 inflated job roles and responsibilities, misrepresentation of employment tenure, and claims of unverifiable previous employers. Address verification failures were recorded at 9.4%, often due to candidates submitting outdated or temporary addresses.
Challenges and Risks
The report highlights several challenges and risks associated with retail hiring, including high workforce churn and shared residences, which complicate verification processes. The sector’s exposure to insider theft, shoplifting, and fraudulent transactions by employees also correlates with risks arising from inadequate background screening practices. Additionally, the retail sector remains vulnerable to cyberattacks that impact customer and company data.
Mitigating Risks
According to Ajay Trehan, Founder & CEO, AuthBridge, retailers must adopt advanced, continuous verification solutions tailored to specific roles to mitigate these risks. Leveraging AI-powered, real-time checks can help build a reliable workforce, reduce operational challenges, and create a safer environment for employees and customers alike.
Conclusion
The report underscores 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. By adopting robust verification solutions, retailers can protect their business integrity and customer trust.