The increasing threat of identity theft has both individuals and organizations on the watch for signs of fraud. Identity theft can create problems during the screening process, leading to failed job applications, legal hassles and more. With this information, people and businesses will know how to spot false information on screening reports and what they can do to resolve it.
Risks of False Information in Screening Reports
Even if you check your credit report regularly and inspect it for inaccuracies, you may still miss some signs of identity theft. The Federal Trade Commission noted that it received about 5.4 million reports for fraud and identity theft in 2023, which is an increase of more than 150 percent compared to reports from 2019 and earlier. Identity theft is a growing problem, and you may not notice it until you fail a background check. Failed screenings can cause a number of issues for you, including:
- Lost Work Opportunities: Background checks figure prominently in the decision to hire or retain certain employees, especially for high-level jobs managing sensitive information. False information in a screening report can lead to someone missing a crucial work opportunity or even losing their job.
- Financial Costs: Disputing inaccuracies in a background check can be expensive and time-consuming. Individuals and businesses may need to hire legal representation to correct the records and undo the damage from identity theft.
- Legal Concerns: In some cases, the false information in the report can lead certain agencies to take action against an individual or organization. Employers who do not take steps to verify information in the background check may face legal consequences for their hiring decisions.
Confirming the correct information becomes the first step in avoiding the effects of identity theft.
How to Identify Fraud in a Background Check
Identity theft on a background check may not always be simple to spot. Identity theft usually starts with simple changes that you might not think about addressing, such as a slight inaccuracy in your birthdate, address history or Social Security number. Leaving false information on the report builds credibility in a case against you, costing you opportunities and leading to complicated work to correct the records. As such, you should look for the following red flags:
- Slight inaccuracies to your personal information, such as a number switch on your Social Security number or a different middle initial
- New address history, including locations in which you have never lived or done business
- Gaps or additions to your employment history
- Criminal records that should have been expunged
Identity theft can spiral out of control quickly, so you must act as soon as you spot a problem.
Way to Ensure Accurate Background Checks
The best way to avoid these problems involves a proactive approach to managing your financial and professional image. When scheduling a background check for employment, you should know your rights to review and dispute the information.
Request Copies of Reports
Like credit reports, individuals and organizations are entitled to request copies of screening reports. Ask the screening agency for the full report, which they should provide within a reasonable amount of time. Once you receive the report, read it carefully for inaccuracies. Even slight errors can turn into bigger problems, particularly if you are just now discovering evidence of identity theft.
Dispute Inaccuracies
Screening reports are not always accurate, and disputing false information is key to protecting your reputation. Even if you pass a background check, errors can continue to come up or cause more issues in the future. Gather information to prove that the report is false and present this information to the agency. Ask them to verify the information and provide you with an update about the report.
Maintain Evidence
With identity theft and other types of fraud, you may have to dispute inaccuracies on more than one occasion. Collect evidence to support your claims, and keep it organized in a place where you can easily find it. Remember that the dispute is your word against that of another organization. Every piece of evidence is important to proving your side of the argument.
Seek Legal Counsel
At times, a simple dispute cannot resolve the inaccuracy because the agency is unable to verify the information or refuses to correct the report. Individuals and businesses deserve to have accurate information on their reports, which may require legal action. Talk to a legal professional with experience in handling identity theft or false background screening information to learn your rights and advocate for a correct report.
Protecting against identity theft requires regular attention, especially to inaccuracies on a screening report. By taking prompt action against false information, you can minimize the effects of identity theft on your employment or business.