India’s Growing Employment Fraud Crisis: Fake Credentials, Black Markets, and Systemic Risks

India’s food delivery sector is built on convenience. But beneath this convenience lies a troubling reality—delivery agents are selling their login credentials and employee IDs for ₹1,500–₹4,000. This enables unverified individuals to access platforms, raising serious concerns about consumer safety and system integrity.

Fraud Extends Beyond Food Delivery

According to a study by fraud detection platform IDfy, which analyzed 3.5 million background checks across 16 industries, employment fraud is not confined to gig work. It’s a widespread issue affecting every sector—from FMCG to healthcare.

The study uncovered a range of fraud tactics:

Fake employment records

Forged educational qualifications

Delivery agents with prior criminal charges

Documents from blacklisted universities

Industries Most Affected by Fraud

FMCG Sector:
15.66% of verifications flagged fraud—often involving misrepresented work experience and tampered documents.

E-commerce Sector:
Leads in employment fraud at 14.46%, driven by high dependence on contract workers and the illegal sale of credentials.

Telecom:
7.67% of candidates used fake experience to qualify for technical roles, raising concerns over actual skills.

Healthcare:
5.66% of flagged cases involved impersonation of licensed professionals, putting patient lives at risk.

Case Example: A person claiming to have passed the 10th grade posed as a doctor, operated a clinic for 3 years, and treated 70–80 patients daily.

Credential Misuse and Repeat Offenders

The problem is not limited to one-time frauds:

In the BFSI sector, 33% of fraudsters were repeat offenders.

Companies lacking real-time tracking unknowingly rehire fraudulent individuals using new fake documents.

Educational Document Fraud on the Rise

Logistics sector:
15.79% of educational documents were fake.

Chennai and Bangalore:
Lead the country in job application fraud with 9.4% and 9.3% fraud rates respectively.

Some universities are repeatedly cited in fake documents, suggesting a large black market network for forged degrees.

How Businesses Can Respond

The IDfy report recommends continuous background verification (BGV) and proactive monitoring, such as:

Mandatory real-time selfies from delivery agents to confirm identity during shifts.

Automated systems to flag repeat offenders.

Verifying institutions and qualifications through government-recognized databases.

“Fraud costs companies four times more than the initial loss. It’s not just about money—it’s about trust, safety, and system failure,” says Ashok Hariharan, CEO of IDfy.

The Cost of Ignoring the Problem

The financial loss is just the beginning. Operational disruptions, legal consequences, and loss of consumer trust multiply the damage. Globally, employee fraud caused businesses to lose ₹4.7 lakh crore last year.

95% of employee fraud cases stem from personal financial issues such as debt or emergencies.

Other factors include greed, addiction, or gambling.

Read More: April Fools’ Day, Tariffs, and Tumult: What Happens After the Laughs?