The Dangers of Doing Your Own Internet-Based Background Checks

Over the past few years, McCann Global investigators have heard that "we do our own backgrounds using Internet-based background services." The main reason: they are cheap. In an attempt to save a few hundred dollars on significant investments, these firms continue to utilize these services until they run into trouble. They unknowingly expose their firms, and their investments, to levels of risk that could be called into question at a later time.

What are the limits to most Internet-based background services? Let's discuss a few that can cause real risk.

1. Limited or No Civil Litigation Checks in County or District Courts: RED FLAG

Problem: The person being "checked" could have scores of civil cases pending or show a track record of material litigation. This research must be done manually, one case at a time, and can result in a "miss" in an online background check. The civil litigation search may show that cases which have criminal overtones, however, were simply not large enough for the local or federal attorneys to pursue. Examples of material issues include factoring fraud, banking fraud, or consumer fraud.

2. Undisclosed Officer of Corporations: RED FLAG

Problem: The person being "checked" may be involved in scores of other companies, some of which may be competitive to your interests. Involvement in other entities can pose a significant drain of the person's time. Even if you know some of the other companies they are involved in, it is good practice to disclose so other minority shareholders are kept fully informed. Internet-based background checks do not check Secretary of State and SEC databases because these checks are manual.

3. No Analysis of "Net Data Grab": RED FLAG

Problem: The Internet background services can grab a lot of information, much of it not relevant to the person being checked. This lack of analysis can cause the person looking at the pages of information to make errors in hiring.

Source: McCann Global.