The Perils of an ‘Instant’ Online Background Check

For many employers, using a so-called “instant” online background check service to vet potential employees seems like a no-brainer. These online businesses charge a fee to deliver a report on any red flags in an applicant’s record. Since critical positions often need to be filled quickly, an instant online background check may seem like a great option. Though businesses who provide instant online background checks seem to be filling an important niche, the potential for backfire is enormous.

The Problems with an Online Background Check

Since the online databases used by these services are not vetted for accuracy by legal professionals, relying on them is a disaster waiting to happen. Using incomplete, limited, or erroneous sources of information to make a judgment call on an employee’s hiring potential can open up the company to massive liability.

The main issue with the “instant” model of an online background check is that it, by definition, can only search records that are digitized and available online. While electronic record-keeping is becoming increasingly common, not all areas or jurisdictions have made the leap. Furthermore, many county courthouses that do keep digital records require that they be accessed via the in-house computer terminal. If a potential employee was arrested or convicted in one of these regions, the record won’t be shown on an online search.

An online background check doesn’t just miss crucial information: it often throws up false red flags. Many online background check services rely on databases that were provided as-is that have not updated since the initial purchase. This means that expunged records or acquittals will be flagged as active cases. Much of the information you’re receiving could be months or even years behind!

Lastly, in addition to missing or outdated information, an online background check can also return erroneous results. Since they do not use the thorough identification criteria of a traditional records search, a potential employee can be flagged for the criminal conviction or arrests of someone with a similar name.

The Risks

A hiring decision based on an online background check isn’t just inconvenient and inefficient — they’re also legally dangerous. When adverse employment action is taken based on incorrect criminal records, it opens up the company to an enormous amount of liability. In 2015, General Information Services and its affiliate e-Background-checks.com, Inc. were found guilty of matching public records to incorrect consumers. The companies were forced to pay $1,000 to each consumer negatively affected by erroneous reports— $10.5 million in total— plus a civil monetary penalty of $2.5 million.

Just in the last two years, Whole Foods, Wells Fargo Bank, and LinkedIn Corporation have been the target of class action lawsuits for alleged Fair Credit Reporting Act (FCRA) violations while performing background checks and reference searches.

The Solution

The bottom line? The advertised advantages of online background checks are all too often undercut by the serious legal and financial risks they create. The best and most reliable way to perform a background check is to choose a public records research company that can deliver accurate, streamlined reports that satisfy all FCRA requirements.

Background Checks and Verification Reports from AADS

All American Document Services is a public records research company that provides accurate and rapid due diligence for corporations, employers, real estate professionals, attorneys and paralegals. We provide everything employers need to screen applicants: Driving Records, Commercial Drivers Record Search, Education Verification, Employment Verification, Personal & Business Reference Checks, Professional License Verifications, Social Security Traces and County, State and Federal Criminal Records searches.

To learn more about our on-the-ground courthouse and due diligence services, please visit our homepage today.