Wednesday, January 28, 2015

Bangalore on top chart among frauds in job applications

CHENNAI: Shyam worked in Hewlett Packard's (HP) Bangalore office for three years without any issues. And then, he quit. A few months later, Shankar joined the company and when he was in the canteen one day, some employees were surprised that he looked exactly like Shyam. Of course, Shankar denied any knowledge of Shyam. However, in the HR verification, it turned out that Shankar was indeed Shyam. 

What transpired was that Shankar had failed to get his college degree. So, his girlfriend, who worked in the company, used her brother Shyam's degree to get Shankar a job. In the course of his two years at the company, Shankar passed and got his own degree. So, he re-applied, this time with his own degree, and got in. This is just one of those many 'fake identity' cases that unfold when background checks are conducted by companies to avoid such 'events'.

Among Indian cities, Bangalore has emerged at the top when it comes to candidates tampering with their employment or address details when applying for a job. After Bangalore, Mumbai, Chennai and Delhi have most discrepancies in applications.

These findings were presented in a second quarter (April-June) report by First Advantage, a firm specialising in background checks. Almost 4-5 lakh checks were conducted by the organisation in this period for this report, of which 9.3% were fraudulent, that is, 9 out of every 100 applications had wrong details provided by candidates.

Wrong employment details provided by candidates were the biggest cause of discrepancy, accounting for 71.5% of all fraudulent cases. Discrepancies in address and education details were the next biggest reasons.

Bangalore accounted for 24% of all fraudulent cases relating to employment details. Mumbai, with 17%, and Chennai, with 7.8%, followed. Bangalore also had the maximum cases related to discrepancies in address details with 19% of all addressrelated discrepancies in the country. Mumbai with 12.7% and Delhi with 8.2% followed. Chennai was fourth at 4.9%. Candidates in the south zone tampered most with their employment and address details - accounting for almost 45% of fraudulent cases in these categories in the country - but were lowest when it came to providing wrong education details.

Almost 6 million checks are being done in India every year, said Navin Chugh, MD of First Advantage. "The cost of checking is between Rs 2,500 and Rs 5,000 per candidate, which is nothing compared to the potential damage a wrong employee can cause to the company," said Chugh. "While the IT industry is actively using these solutions and the discrepancy is likely to be 10% here, fast growing sectors like retail, health and pharma see discrepancies as high as 20%-25 %."

While companies are checking everything from bank statements, credit cards, social media and even drug testing in some cases, there is an entire industry at the other end of the spectrum. "There are around 3,000-5,000 companies which issue fake certificates and around 2,000 educational institutes grant fake degrees in the country," said Chugh. Employees in India have a right to ask for their background check reports from their employers but very few are aware of this right. This is especially important since not all companies doing background checks are all white. There are around 80-90 such companies in India, according to Chugh, and many of them have no compliance.

The fine print 

Bangalore topped cases relating to job details The city also had the most cases relating to address discrepancies Candidates in the south tampered most with job, address details Candidates in the north topped cases relating to wrong education details Almost 6 million checks are being done in India every year.


1 comment:

  1. Do a background checks on your new hires to work against scams. A background verification company will run a back-check on employees to declare the truth behind them and produces the identity check reports to the concern authority.