In today’s society, background checks have become increasingly important for various reasons. They are not limited to large corporations or government agencies but also necessary for small businesses and individuals hiring domestic workers or even dating sites. Background checks are investigative searches conducted to obtain information on an individual’s past, including criminal records, education, credit history, and employment history. This information enables employers, landlords, and others to make better-informed decisions about individuals and helps prevent fraud while protecting public safety.
Preventing Fraud
Background checks have become a crucial tool in the prevention of fraud. Fraudulent activities, specifically pertaining to misrepresentations of past employment, education, and criminal records, cost companies large amounts of money. These costs result from costs incurred in recruitment, training, and even compensation for employees that have falsified such information. Companies spend a lot of money on advertising, recruitment, and training to select the best candidates – investing in these processes can prove to be significant investments in terms of employee productivity, retention, and morale.
In addition to these direct monetary costs, hiring individuals with falsified information puts the company at risk of more significant losses, including legal fees, reputational damage, and even potential financial penalties. These penalties may arise because of potential lawsuits from clients and creditors who have had dealings with fraudulently recruited employees. Companies with even a single fraud case may experience a serious loss of market value, and it can take years for the company to recover its shareholder value.
Protecting Public Safety
Background checks are equally crucial for protecting public safety, particularly in industries such as education, healthcare, and law enforcement. These industries often require trust, integrity, and an impeccable record of past behavior. Individuals with criminal records, particularly violent or sexual crimes, can pose a significant risk to the public. For employers in these industries, conducting comprehensive background checks is therefore a viable way to protect their staff and the general public. Many lives are saved or protected as a result of thorough criminal background checks of applicants for positions in sensitive industries, such as daycare, hospitals, and fire departments.
Background checks are also essential for individuals seeking new careers. For example, individuals applying for jobs that require driving or operating heavy machinery must undergo driving history background checks to ensure they haven’t been involved in reckless and dangerous driving practices in their past.
Carrying out these background checks may seem invasive to some, and there has been controversy over their accuracy. These checks are mostly conducted by third-party organizations that are licensed to access several public and private databases before the report is compiled for the requesting party. However, as with any investigative search, the data collected could be open to human error or misinformation. The responsibility is on the company conducting the background check to ensure the accuracy of the information provided, and so verifying the information obtained is essential.
Real-Life Examples
Several recent cases have showcased why background checks are crucial, both for preventing fraud and protecting public safety.
In 2017, Wells Fargo, a multinational financial services giant, was fined $185 million after it was discovered that staff had created around two million fake accounts. The scam involved employees opening unauthorized bank accounts and applying for credit cards – this was carried out to meet sales quotas. This fraud case could have easily been prevented had Wells Fargo carried out proper background checks on its employees.
Another notable example is the case of Uber driver, Jason Dalton, who carried out a series of shootings in Kalamazoo, Michigan, in 2016. The driver, who had no prior criminal record, passed Uber’s background check due to a lack of convictions. While not a fault of the background check system itself, this case highlights the importance for employers to consider more than just one aspect of a potential employees’ background.
On a more personal level, background checks are also used for online dating. A Pew Research Center Survey found that 41% of Americans know someone who uses online dating sites. With so many individuals using such sites, it has become increasingly important to ensure that individuals using them are who they say they are. A background check can help provide some insight into potential dates and identify individuals with a history of violence or sexual assault.
Conclusion
The importance of background checks in today’s society cannot be overstated. They are an essential tool that aids in preventing fraud and reducing potential risks to individuals and society as a whole. Although background checks do attract some controversy – such as a breach of personal privacy rights – they remain a viable and crucial tool for organizational risk management and as stringent situations that require attention. Background checks help employers to make informed decisions in their hiring process and also help individuals protect themselves in their personal lives. Conducting accurate background checks, ensuring the data is correct, and verifying the information obtained is vital if you want to maintain your credibility and ensure your safety.
