A background check or background investigation is the process of looking up and compiling criminal records, commercial records and financial records (in certain instances such as employment screening) of an individual.

Background checks are often requested by employers on job candidates, especially on candidates seeking a position that requires high security or a position of trust, such as in a school, hospital, financial institution, airport, and government (including law enforcement and military). These checks are traditionally administered by a government agency for a nominal fee, but can also be administered by private companies. Results of a background check typically include past employment verification, credit score, and criminal history.

These checks are often used by employers as a means of objectively evaluating a job candidate's qualifications and to identify potential hiring risks. However, these checks may sometimes be used for illegal purposes, such as unlawful discrimination (or employment discrimination), identity theft, and violation of privacy.

Pre-employment screening

Pre-employment screening refers to the process of investigating the backgrounds of potential employees and is commonly used to verify the accuracy of an applicant's claims as well as to discover any possible criminal history, workers compensation claims, or employer sanctions.

The problem screening tries to counter in the UK

A number of annual reports, including BDO Hayward's Fraudtrack 4 and CIFAS's (the UK's fraud prevention service) 'The Enemy Within' have showed a rising level of major discrepancies and embellishments on CVs over previous years. Such business fraud cost United Kingdom businesses $1.4 billion in 2005.

Almost half(48%)of organizations with fewer than 100 staff experienced problems with vetted employees.

Thirty-nine percent of UK organizations have experienced a situation where their vetting procedures have allowed an employee to be hired who was later found to have lied or misrepresented themselves in their application.

However, recent research shows a reverse in the trend. Sources found that in the 2006/7 period CV discrepancies had fallen by 31% to 13%.

The market

Larger companies are more likely to outsource than their smaller counterparts – the average staff size of the companies who outsource is 3,313 compared to 2,162 for those who carry out in-house checks.

Financial services firms had the highest proportion of respondents who outsource the service, with over a quarter (26%) doing so, compared to an overall average of 16% who outsource vetting to a third party provider.

The construction and property industry showed the lowest level of outsourcing, with 89% of such firms in the sample carrying out checks in-house, making the overall average 16%. This can increase over the years.

Types of checks

• Employment References