Employment verification is done to confirm a person’s past or current job details like title, dates of employment, and salary. It is done to verify resumes and helps organizations in complying with regulatory and risk requirements. In this blog post, we’ll be talking about why the process is important, the difference between manual and automated verification, and platforms to use for employment verification.
What Is Employment Verification?
Employment verification is the process of confirming a person’s work history. This includes job titles, employment dates, their salary, and reasons for leaving in some examples. Companies can make sure the information provided by a candidate or employee is accurate and ensure compliance since this verification process reduces chances of fraud.
In EY’s May 2025 study, it’s been mentioned that employment fraud is increasing sharply. Many fraudulent candidates submit fake employment documents, for example, 85% of fraud cases in IT and 83% in healthcare had false or inflated employment histories.
Who Uses Employment Verification?
Employment verification is used by professionals of different sectors. Employers conduct this check since it confirms a person’s work history and prevents CV fraud. Lenders and financial institutions use this process to check the person’s credit worthiness and verify income for loans and mortgages.
Government agencies and benefit programs require verification to help determine eligibility for the said programs and opportunities, preventing fraud. Also, freelance platforms and gig-economy services use verification to check freelancers’ backgrounds, further building trust between clients and service providers.
Why Is Employment Verification Important?
The employment verification process helps prevent CV fraud by confirming the candidate’s work history and roles. Legal compliance is supported as well, since many jurisdictions require verifiable employment information for immigration, labor, and financial regulations. When it comes to lenders and financial institutions, this verification informs credit decisions since the process validates income and employment stability.
The process also mitigates financial crime risks like money laundering or fraud since it ensures that the person’s employment claims are legit. According to EY, among the over 1 million pre-employment screenings analyzed between Jan 2024-Jan 2025, 9% of candidates had discrepant employment tenure or job titles.
How Does Employment Verification Work?
1. Consent & Data Collection
For the first step of the employment verification process, the person looking to conduct the verification process should get the individual’s consent first and then gather important personal and professional information like name, employment dates, job title, and employer contacts. These information can be found in the resume the individual provided. This step is crucial for the verification to be legally compliant and accurate.
2. Verification Methods
Several approaches can be used for verification. Direct HR contact will help you verify the employment details with the employer. Checking third-party databases and public records can also provide you with additional evidence. API-based platforms are used frequently to automate the verification process, bringing in faster and more scalable results.
3. Document Checks (if needed)
If more proof is needed, additional documents like tax records and employment contracts are examined. These documents provide further support and help those who are conducting the process feel more confident in the accuracy of the verification.
Types of Employment Verification
Depending on the purpose of the person conducting the verification, the employment verification process can take several forms. Current employment verification confirms a person’s present job role and employment status to make sure they’re actively employed. Previous employment verification checks past roles and this includes the duration and responsibilities of the person, validating the candidate’s work history.
Income verification is used mostly by lenders and financial institutions and since it is done to confirm earnings, additional documents like pay stubs and tax returns may be needed. For freelancers or self-employed peeple, verification is done through references or invoices, acting like the work history and icome.
Is Employment Verification Required by Law?
Employment verification is required legally in lots of jurisdictions to ensure compliance with labor and immigration laws. In the U.S., employers are required to complete Form I-9 for all of their new employees, and some businesses are required to use E-Verify to confirm work eligibility as well. Employers may face penalties of up to $30,000 per violation for I-9 infractions. In the UK, right-to-work checks are mandated to prevent illegal employment.
In the EU, reqiurements aren’t unified for all members, but all must comply with GDPR to protect the person’s personal data during the verification. Also, in sectors like fintech and banking, employment verification is needed as part of Enhanced Due Diligence (EDD) for high-risk clients, which helps reach AML and KYC obligations.
Employment Verification and Data Privacy
Employment verification processes bring with them data privacy regulations that the person conducting the check should adhere to. In the EU, the GDPR mandates that employers and verification platforms handle personal data lawfully, ensure minimal data collection, and obtain consent where needed.
Another example, in California, the CCPA gives employees and candidates rights over their personal information like access, deletion and disclosure requests. Also, in Singapore and Brazil, the PDPA and LGPD impose rules on consent, data security and lawful processing. These are imposed to make sure employment verification doesn’t compromise privacy.
Manual vs. Automated Employment Verification
Manual employment verification usually involves contacting the previous employers of the person, and using email and phone confirmations, which may take days or even weeks. Manual verification is prone to errors, labor-intensive and it is less scalable.
Automated employment verification uses digital platforms and APIs to verify employment and income in real-time. It is highly accurate, easily scalable for when there are large volumes of applicants, and comes with built-in safeguards, which make sure regulatory compliance is reached and human error is reduced.
Popular Employment Verification Platforms
The Work Number is operated by Equifax, and it is a widely used employment verification platform in the U.S. since it includes information from more than 1.2 million employer contributors. The platform provides instant verification and income data for employees and former employees, mostly used by lenders, landlords, and government agencies.
Truework is another popular platform that automates employment and income verification for employers and third-party verifiers. Truework can integrate with HR and payroll systems to give secure and instant responses while paying attention to data privacy and compliance.
Certn and Checkr offer automated employment verification as part of wider pre-employment background checks, which are designed for high-volume hiring and ensure adherence to privacy regulations. Veremark is another option that provides global employment, education and professional credential verification by combining automated and manual checks.
How Organizations Benefit from Employment Verification
1. Hiring
Employment verification helps employers in confirming the accuracy of a candidate’s CV, ensuring that the roles and responsibilities written in the document are legit. The risk of hiring unqualified people is reduced thanks to this process, and fraud as well as misrepresentation is prevented.
2. Lending
Lenders use employment verification to validate the applicant’s income and employment stability. This is needed for creditworthiness assessments. Accurate verification reduces the risk of loan defaults and financial exposure.
3. Freelance
Freelance marketplaces rely on employment verification to build credibility between users. Verifying professional history helps clients trust freelancers faster. This verification process reduces disputes and ensures better transactions.
4. Visas
Immigration professionals and consulates usually require employment verification to see a person’s job status and income. This verification makes sure compliance with visa requirements is reached.
5. Crypto EDD
In the cryptocurrency sector, employment verification is needed for Enhanced Due Diligence (EDD). The verification process helps by confirming user identity and financial background. Employment verification helps prevent fraud and money laundering.
FAQ's Blog Post
Employers verify through tax records, social security data, old pay slips, or third-party verification services.
HR teams request reference letters, speak directly with former supervisors, or cross-check role descriptions with industry norms.
Companies rely on global databases, embassy-attested documents, and localized verification partners familiar with local laws.
Employers check formatting inconsistencies, contact the issuing company, and use document-verification tools to validate authenticity.
Businesses use automated verification platforms, predefined HR templates, and parallel background checks to speed up the process.
