Background checks have become an increasingly important part of our society, especially in the wake of various high-profile fraud cases, data breaches, and identity theft. These checks are designed to verify information about an individual's criminal and financial history, as well as other personal details that are often used to evaluate their suitability for certain positions or activities. In this article, we will explore why background checks are important in today's society and how they help prevent fraud and protect public safety.

Preventing Fraud

One of the most significant roles background checks play is to prevent fraud or deception. By looking into a person's past, organizations can quickly identify any inaccurate or false information provided by an applicant. These checks can verify educational credentials, criminal records, credit history, and employment references. Conducting background checks puts employers in a better position to evaluate the employees they are hiring and minimize the chances of fraud or issues arising later on.

For instance, a study by the Association of Certified Fraud Examiners shows that the most commonly detected occupational fraud is financial statement fraud. Therefore, conducting thorough background checks on prospective employees helps to identify any potential red flags that could ultimately contribute to severe financial fraud cases.

In the healthcare industry, background checks help to prevent fraud in the form of healthcare scams. These scams cost people millions of dollars every year, leading to higher healthcare costs overall. According to the National HealthCare Anti-Fraud Association (NHCAA), fraud cost around $68 billion per year, making it among the most profitable criminal activities.

Protecting Public Safety

Background checks also play an essential role in protecting public safety. Some jobs, such as those in healthcare and education, require strict background checks to ensure that employees are suitable for the position. Background checks are also critical when individuals or businesses want to obtain licenses or permits which allow them to carry out activities such as owning a gun, opening a business, driving a commercial vehicle, or providing care services to vulnerable individuals.

In addition, background checks help to reduce the number of harmful individuals in our society. They can identify individuals with criminal records, ensuring they are not placed in positions of authority or other situations where they may pose a risk to the public. For example, companies in the childcare sector heavily rely on background checks to vet prospective job candidates. Knowing that a potential employee has a history of criminal behavior or might be a sex offender can help the company avoid putting children in harm's way.

Real-Life Examples

The importance of background checks can be illustrated by several real-life examples. In 2020, the Australian Federal Police arrested a man suspected of identity theft. He was revealed to have used falsified documents to gain employment with several Australian telecommunication firms, ultimately gaining sensitive personal details of dozens of high-ranking individuals.

In another example, an employee of a US-based healthcare provider was discovered to be a sexual predator who preyed on patients at his place of work. Following a background check, it was discovered that he had a criminal conviction that should have prohibited his employment in the healthcare industry.

However, it is worth noting that background checks are not always 100% reliable. Factors such as inconsistent laws on reporting criminal convictions across different states or countries, for example, can impact the data collected and the data's reliability.

Conclusion

In conclusion, background checks are essential in many areas of our lives, including employment, volunteering, and other sensitive activities we may participate in, such as childcare or healthcare. The benefits of background checks include protecting public safety, preventing fraud, and reducing the risk of harmful occurrences. However, they should be used cautiously and with the understanding that they can only provide a certain degree of assurance, and should not be seen as a guarantee that an individual is not a potential threat to the public.