Blog

Why $10 Background Checks Are Bad For Your Business

Back to listing
Posted by: David Garcia April 20, 2021

With employment costs rising, talent acquisition professionals are always looking for ways to reduce costs. Background checks can be expensive depending on the type of check components and the residence history of the candidate.

So, when you or your CHRO sees an advertisement for “$10 background checks that return instantly!”, you can get pretty excited about dramatically reducing your costs and getting checks back within minutes.

Unfortunately, like many things in life, you get what you pay for and, in this case, you may be setting yourself up for a lawsuit.

What Is a $10 Background Check?

A $10, or less, background check is typically a National Criminal File check. However, this is simply a database of scraped records that come from counties that have electronic records that are publicly available online.

These services will also include information from other, valuable sources too, including sex offender registries, terrorist watchlists, and other financial sanction databases.

This is not in any way a “federal” government database. It is typically just a collection of data that a private business aggregates and sells to background check companies for them to resell to end employers.

These databases are not comprehensive

These checks are often missing large parts of the United States, including counties around urban areas.

So, if you run these checks, you will be potentially excluding substantial areas where crimes may have been committed. This is why you always want to run a background check in counties a candidate has lived in during the past 7 years.

You are taking a risk by acting on “non-verified” information

The Fair Credit Reporting Act requires strict procedures to confirm the accuracy of a background check.

One of the most litigious areas of background checks is reporting inaccurate information on an individual that leads to them not getting a position. If your background check company is simply reporting information from a database without verifying the information at a county level, they may not be following strict procedures.

We strongly recommend that at a minimum, you advise your background check firm to verify any records found at the county level. However, this is where many background check companies pull a “bait & switch”.

This means they then charge you additional fees to check the county and that county may have access fees of their own. And those counties may also take several days to return the original records.

Don’t Fall for the Bait & Switch

Unfortunately, there is no $10 background check solution that is comprehensive enough and compliant to meet employers’ needs.

While you may have to pay more and wait longer, the total cost of talent acquisition is still lower than making a bad hire or exposing yourself to litigation risk.

ScoutLogic Can Help

Confused by background check terminology? Wondering how to design the right program for your company?

ScoutLogic’s mission is to make background checks easy for recruiters. We help many employers to make the right choice when it comes to setting up the best background check for their company.

Just click here to schedule a time for your free program assessment.


Footer
ScoutLogic is not a law firm. You should always check with qualified counsel before you make any changes to your background check program. If you need a qualified attorney, we would be happy to make a referral for you.

Latest blog posts
March 14, 2023
What Is Fair Chance Hiring?
Changes in the job landscape require different regulations to protect candidates. Fair chance hiring is one of the changes in the past few years that has caught some companies...
March 12, 2023
Background Checks That Comply With DOT Regulations
Ground transportation is vital for many companies across the country. If your company employs people to operate commercial vehicles such as vans, buses, semis, or freight trucks, they...
March 11, 2023
Get To Know Paula Marin, In Our "Behind the Scout" Series
Meet Paula Marin. Our next "Behind the Scout." This series aims to highlight our dedicated scouts, who offer you valuable support daily. Question: What initially got you interested...
March 10, 2023
Does Date of Birth Affect Background Checks or Hiring?
Hiring processes have come a long way when it comes to eliminating discriminatory practices. Federal and state laws prohibit employers from discriminating based on race, disability,...
March 08, 2023
How to Answer “Tell Me About Yourself” in an Interview
First impressions are everything. That doesn’t just include how you dress but also how well you can respond to questions in an interview. One of the most important questions...
Looking for a better background check company? Start by preparing with this free guide.

Download this free guide to go into the searching process prepared. This guide includes actionable steps to:

  • Gather your requirements
  • Determine vendors
  • Check references
  • Determine success metrics
get a free e-book

Get a free e-book