The Growing Threat of Identity Fraud: Insights and Solutions

According to Verifacts’ Report 2024, identity fraud in India made up 67% of fraud cases in the first quarter of 2023. In the banking and financial sector, auto loans, mortgage loans, and credit cards experienced the highest number of fraud cases due to identity theft, representing around 80% of total frauds detected.

The widespread sharing of information online is increasing data leakages. People must be cautious when sharing personal details on social platforms. With the rise of incidents related to fake identities, identity verification becomes crucial to prevent threats like theft, embezzlement, violence, injury, and harassment in both social and workplace settings.

Companies must understand the importance of verifying a candidate’s identity first to ensure they are checking the correct records. It’s vital to confirm individuals are who they claim to be.

Several cases highlight how fraudsters today form well-connected networks and use fake identities to defraud people. For example, the Central Crime Branch in Bengaluru arrested Salim Ahmed for impersonating software engineer Mohit Gupta to secure jobs and bank loans using Gupta’s stolen identity and educational documents. Salim defaulted on payments for two credit cards and a loan under Gupta’s identity.

In another case, an ex-employee used his boss’s educational documents to apply for a job at a major financial organization. His true identity was discovered after thorough investigation, showing how identity theft can lead to significant reputational damage for companies.

Instant identity verification is an effective way to protect against fake identities. Verifacts can instantly verify employee IDs with Aadhaar and PAN, leveraging access to UIDAI and relevant government databases. This process helps prevent fraud involving forged, doctored, or stolen identity documents.

With the rise of on-demand and sharing companies in India, identity verification is essential to ensure customer safety and avoid incidents. Companies cannot compromise on their reputation or customer safety, making effective and quick background checks imperative.