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By Siddharth Ugrankar
In recent years, the proliferation of fake educational credentials has been a huge problem globally. In last five years, eighty five fake university has been taken down according to a report by Hall (2021) published in The Guardian. This crackdown, aimed to deal with the rampant problem of fake degrees being furnished through dubious establishments. Additionally, Personnel Checks study in 2022 discovered an alarming number of applicants lied on their resumes while applying for jobs, indicating an uptick in the education credentials fraud.
The problem of credential fraud is not confined to a selected region, but it is a global issue. Bonanni et al. in an article highlighted that among 25 to 80 percentage of job applicants globally fabricate, exaggerate, or hide facts during the pre-employment screening. These alarming statistic shows the pervasive nature of the problem and its impact on both employers and educational establishments.
The ease of making counterfeit certificate coupled with the lack of robust verification process, makes it increasingly difficult to detect fake credentials. A company named Axact, was exposed by BBC for selling over 215,000 fake qualifications globally and made millions of dollars in revenue. Such stories keep coming from all corners of the world, where systems are not robust, and verification and validation is cumbersome.
Similar problems exist in India, wherein the integrity of education system is compromised by way of fraudulent practices. The Indian education system however vast and diverse, has a global presence with its prestigious institutions like IITs and IIMs, however these are just a handful institutes. Majority of the educational institutes do not have the infrastructure or the resources to deal with the challenges of fraud and fake degrees. This is concerning given the country's large workforce and its impact across all sectors specially technology, healthcare, and finance.
The risks associated with fake credentials are multilayered and have costs that are far reaching. Employers incur substantial losses due to recruitment fraud. According to a PWC research done along with Crowe UK and University of Portsmouth, it was estimated that the annual cost was in billions of pounds. The average cost of dealing with an incident of credential fraud ranged from ÂŁ170,000 - ÂŁ250,000, underscoring the monetary burden imposed on organisations.
The Role of Technology in Addressing Credential Fraud
Traditional methods of verifying academic credentials often fall short in the face due to sophisticated fraud schemes. Enterprises depend on manual verification processes, such as requesting letters and validation from universities, which are time-consuming and costly. Moreover, these methods are susceptible to internal fraud and may not be feasible if university records are inaccessible.
With advancement in technology out of box solutions are being implement by institution, however the centralised federated approach has its own drawback and vulnerabilities. On the other hand, Blockchain technology offers a compelling solution to mitigate these challenges of credential fraud. The core offering of blockchain is a ledger that records transactions in a decentralized, immutable manner. It eliminates the need for intermediaries and enables secure issuance, verification, and sharing of digital credentials.
Understanding Blockchain
Blockchain technology operates on the principles of distributed ledger technology (DLT), immutability, and smart contracts. It functions as a decentralized network where transactions are recorded in blocks and linked together in a chain. Each block contains a unique cryptographic hash that ensures the integrity and security of the data.
Blockchain can be classified into different types, including public, private, permissioned, and consortium blockchains, each offering varying degrees of accessibility and control. In the context of credential verification, blockchain serves as a decentralized verification infrastructure that enhances trust and transparency.
How Blockchain Addresses Credential Fraud?
Blockchain offers a secure and tamper-proof method of storing and verifying educational credentials. By leveraging cryptographic techniques and distributed consensus mechanisms, blockchain ensures the authenticity and integrity of credentials. This eliminates the risk of tampering or forgery and provides a reliable means of verification for employers and educational institutions.
One of the key advantages of blockchain is its decentralized nature, which enables anyone to verify credentials without relying on a central authority. This enhances accessibility and reduces the dependence on traditional verification methods.
Benefits of Blockchain Adoption in the Education Sector
Implementing blockchain technology in the education sector offers a plethora of benefits, transforming the way credentials are managed and verified:
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Enhanced Security: Blockchain ensures tamper proof storage of credentials, reducing fraud risk.
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Streamlined Verification Process: Fast and streamlined verification saves time for both the institutions and employers.
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Improved Transparency: Auditable records foster transparency and trust among stakeholders promoting integrity.
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Cost Savings: Eliminating manual process reduces costs and mitigate fraud related loses.
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Empowerment of Students: Decentralised storage and sharing empowers students with greater control.
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Global Accessibility: Blockchain enables seamless verification across borders, creating opportunities.
Qila.io's Innovative Solutions for Education Sector.
In addressing the challenges of credential fraud, Qila.io offers innovative blockchain solutions tailored to the needs of educational institutions. With its ARK and ARK+ blockchain distribution platform, Qila.io empowers educational institutes to easily adopt tokenization solutions, streamlining the issuance and verification of credentials.
ARK and ARK+ provide a robust framework for securely storing and managing educational records on the blockchain. Institutions can tokenize degree certificates, diplomas, and transcripts, ensuring their authenticity and immutability. This not only enhances trust and transparency but also simplifies the verification process for employers and other stakeholders.
Additionally, Qila.io's NFT Wallet PrivaSea offers students a secure and convenient way to store and share their academic credentials. By leveraging non-fungible token (NFT) technology, PrivaSea enables students to maintain full control over their digital assets, safeguarding their privacy and security.
With Qila.io's innovative blockchain solutions, educational institutions can revolutionize their credentialing processes, combatting fraud and promoting trust in the education sector. By harnessing the power of blockchain, Qila.io is paving the way for a more secure and transparent future for education.
In conclusion, blockchain technology holds immense promise in revolutionizing the verification of educational credentials. By providing a secure, decentralized infrastructure for issuing, sharing, and verifying credentials, blockchain mitigates the risks associated with credential fraud. However, widespread adoption and standardization are necessary to fully realize the potential of blockchain in addressing credential fraud and promoting trust in the education sector.
Author Bio
Mr. Siddharth Ugrankar is CEO & Founder, Qila.io
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