How AI-backed Background Verification Solutions are Enabling IT Industry to Scale Faster and Prevent Fraud

An employee is the backbone of the firm. Especially when it comes to sensitive industries like IT, where even the slightest glitch in the process can make you pay severely. IT is that department where you can not leave any scope for mistake as major of the company’s operations are dependent on it. Moreover, the criminal record of the employee can give you a solid issue considering the nature of the job. It’s no surprise that the IT domain can grow with unbelievable expansion, and if you can be safe from fraud, then the faster scaling of the company is assured. Needless to say, employee verification is the key when it comes to taking your company ahead in the market. 

The need for employee verification in the IT industry

Eight out of 100 candidates were misled or misinformed on job applications in 2020, with the IT sector witnessing the highest discrepancy in employee background verification at 16.60 percent, according to identity management and business intelligence firm AuthBridge. Despite a drop in the overall discrepancy in the last three years, AuthBridge said in its sixth annual trend report that the healthcare sector had the second-highest discrepancy at 12 percent, followed by retail at 10.22 percent, and BFSI (banking, financial services, and insurance) and pharma with discrepancies of 9.76 percent and 9.65 percent, respectively. 

Common frauds in the IT industry 

● Payroll fraud 

Payroll fraud may appear in a variety of forms. To obtain a better salary, a person may lie about their productivity, sales, or work hours. Some people may obtain a salary advance with really no intention of repaying it. Individuals may even go so far as to have a coworker falsify their attendance records by checking in and out for them. 

● Wrong use of the assets 

One of the most prevalent kinds of commercial fraud is asset theft, yet it is also one of the easiest to detect. Keeping an eye out for falsified checks, missing merchandise, and accounts that don’t match up is critical to detecting asset theft. You may also become a victim of skimming, which is the act of removing money from a consumer or a firm without registering the occurrence. 

● Fraud in financial statements 

Financial statement fraud involves falsifying key figures such as sales, revenues, investments, and receivables. Typically, this is done to deceive investors or the general public, influence stock prices, or enhance bonuses. Although this is a less common type of company fraud, it is also one of the most harmful. 

● Data theft 

Many firms deal with confidential material, whether that’s personal information or intellectual property (IP). IP theft may harm your company if an employee discloses trade secrets and patents to rivals. Identity theft may harm your reputation since it reduces customer confidence. 

How AI-Backed background verification solutions help 

● You can do broader research. 

AI and machine learning are providing greater background check performance through deeper analysis, more precise delivery, and increased performance. This is due to AI’s capacity to analyze and match substantially larger numbers of data points than ever before, allowing coverage of more data sources throughout the web! This makes the analysis more thorough and useful. With the rising digitalization of identification information, arrest history, as well as other records, the availability of large data points calls for sophisticated algorithms to sift through the ocean of data, choose relevant data, perform speedy analysis, and give useful insights! With AI, this procedure may be completed in minutes!

● Better evaluation 

AI and machine learning algorithms may map probable affiliations, linkages, and crossings of any prospective employee with questionable behavior, broadening the net and analyzing a range of dangers. As a consequence, a company’s economic, financial, and regulatory fortifications stay intact.

● You get a clear vision of the risks 

AI and machine learning programs can extract and profile enterprises and other organizations with which a person is either directly or indirectly linked, allowing hiring employers to have a deeper understanding of any potential conflicts of interest or undesirable behavior patterns. As a result, AI can undertake many types of regulatory and legal analysis on a job prospect, which has previously been impossible to execute. 

● Can stress relevant points. 

A vast ocean of data points can be beneficial only if pertinent information can be discovered and processed. AI enables background screeners can develop extensive reports and recover vital insights and actionable data points as if they were on a wild goose hunt rather than being buried behind mountains of data! Intelligent AI use also helps to reduce redundancy and give useful insights by identifying links and connections between disparate data sources—a feat that was previously unthinkable! 

● It is quick. 

AI substantially accelerates the process of conducting background checks, which benefits both job hopefuls and hiring organizations. Automation of search and analysis methods, for instance, can occasionally reduce report delivery time from ten business days to one hour. Moreover, even though AI can extract the most specific data bits and assist businesses in drawing appropriate conclusions, AI effectively encourages a shift from lengthy findings to concise overviews, which improves efficiency and reduces the number of time humans must splurge on background checks.

Conclusion 

Employee background checks are more critical than ever at a time when security problems and cyber dangers are hitting enterprises all over the world. Every recruiter must now thoroughly examine an applicant’s previous records, private details, prior experience, and criminal records. This contributes to a higher sense of confidence and reliability, which is in accordance with current regulatory standards. Taking all choices into account, the previous employee background verification procedure was a manual and paper-based process administered by external organizations, with fees and lengthy deadlines. Artificial intelligence (AI), like other aspects of the HR function, is revolutionizing this field for the better. Employee background checks are now considerably more computerized and effective.