Fake Degrees Emerge as Top Hiring Risk Amid AI-Driven Background Checks

Feb, 2: Genius HRTech Limited a leading Workforce Staffing Services & HR Solutions provider, and a pioneer in Background Verification Services, has unveiled findings from its latest Digi poll Survey, highlighting how organisations are transforming background verification practices to address emerging technological, compliance and risk challenges.

The survey conducted among 1,316 professionals reveals a growing openness towards technology-led verification systems, coupled with heightened concern around fraud, compliance and cross-border complexities. As organisations scale hiring across geographies and hybrid work models become the norm, traditional one-time background checks are increasingly being viewed as insufficient.

When asked about confidence in adopting AI-led tools that automate key background verification decisions, 40% of respondents said they are very confident, while 23% are somewhat confident. However, a notable 27% remain neutral, indicating cautious adoption, and 10% expressed a lack of confidence, underscoring the need for greater transparency and governance around automated decision-making.

Emerging technologies are gaining credibility in the BGV ecosystem. A majority 59% of respondents see high value in blockchain-based, tamper-proof employee records, while 18% view them as moderately valuable. This reflects a growing demand for immutable and verifiable credential systems as organisations seek to reduce document fraud and manual intervention.

Regulatory preparedness remains a mixed picture. While 47% of organisations claim to be fully compliant with the DPDP Act, 2023 within their BGV processes, including consent management, 27% are only partially compliant and 21% are still in the process of achieving compliance. A smaller but concerning 5% admitted to being not prepared at all, highlighting gaps that could expose organisations to regulatory and reputational risk.

Cross-border hiring continues to pose significant challenges. Nearly half of respondents (49%) cited legal and regulatory compliance as the biggest hurdle in international background verification, followed by data localisation requirements at 32%. Longer turnaround timelines and higher operational costs, while relevant, were seen as secondary concerns.

Credential authenticity has emerged as the most pressing risk area today. An overwhelming 74% of respondents identified fake degrees or forged documents as their top concern, far outweighing other risks such as behavioural analytics, gig workforce screening or moonlighting. This aligns with growing reports of sophisticated document manipulation aided by digital tools.

The survey also points to a shift in how organisations view verification models. Half of the respondents rated continuous or ongoing verification as very effective compared to traditional one-time checks, while another 22% found it moderately effective, signalling a gradual move towards lifecycle-based employee risk monitoring.

Concerns around identity fraud are intensifying with advancements in generative AI. A striking 77% of respondents said they are extremely concerned about deepfake-driven identity fraud or AI-generated resumes and documents, reinforcing the urgency for stronger authentication mechanisms and tech-enabled safeguards.
When balancing speed and accuracy in BGV turnaround time, organisations appear to be taking a pragmatic approach. Nearly half (47%) prioritised a balanced focus on both speed and accuracy, while 29% preferred higher accuracy even if turnaround time increases. Only a small minority were willing to compromise accuracy purely for speed.

Commenting on the findings, Mr. R P Yadav, Chairman and Managing Director, Genius HRTech Limited, said,

Background verification is no longer a back-end HR process; it has become a strategic risk management function. As hiring becomes faster, more digital and more global, organisations must invest in secure, compliant and technology-driven verification frameworks that protect both the employer and the workforce.”

The survey underscores a clear shift in enterprise mindset from viewing background checks as a procedural necessity to recognising them as a critical pillar of trust, compliance and workforce integrity in the digital age.