Identity theft is escalating at an alarming rate, with Verifacts’ 2023 Fraud Report revealing that 77% of fraud cases in India’s first quarter of 2022 were related to identity fraud. In the banking and financial sector, auto loans, mortgage loans, and credit cards accounted for 85% of identity theft cases, emphasizing the urgent need for enhanced security measures.
The increasing prevalence of data leaks due to widespread information sharing on public platforms is a major contributor to identity theft. Individuals must exercise caution when sharing personal details online to mitigate social and workplace threats such as theft, embezzlement, violence, injury, and harassment.
Companies play a crucial role in combating identity theft by prioritizing identity verification in the hiring process. Failing to verify a candidate’s identity can lead to severe consequences, as highlighted by cases where fraudsters exploited stolen identities for personal gain. The arrest of Mohammed Irfan, who impersonated a software engineer to secure jobs and loans, and an ex-employee misusing a boss’s credentials underscore the need for robust identity verification practices.
Identity theft poses not only a financial risk but also jeopardizes a company’s reputation. To counter this growing threat, instant identity verification has become essential. Verifacts, leveraging access to UIDAI and relevant government databases, offer quick verification of employee IDs using Aadhaar and PAN. This technology safeguards against forged, doctored, or stolen identity documents, protecting organizations from the potentially disastrous consequences of hiring individuals with false identities.
In the era of on-demand and sharing companies experiencing rapid growth in India, hiring practices must adapt to ensure maximum customer safety. Identity verification stands as a crucial step in fortifying organizational security and reputation in a landscape where compromise is not an option.