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Free and low-cost background checks, while seemingly convenient, come with significant limitations, legalities, and risks, particularly when used for employment purposes. These services retrieve data from public records that may be outdated, inaccurate, incomplete, or misattributed, resulting in errors such as false positives or negatives. They often miss key information such as criminal and employment histories, education, professional licenses, or records that have not been digitized.

These services are entirely automated, have limited access to information, and lack human verification to ensure data accuracy or interpret complex results. Additionally, they fail to provide comprehensive criminal records because they have limited access to information databases, and no single “national” criminal database exists. Criminal records often require additional searches of state or county records or even at individual courthouses, which these sites cannot perform. Criminal records, federal crimes, military records, expunged or sealed records, civil court records, and sanctions lists are often missed by such services.

Free and low-cost background checks are typically not compliant with the Fair Credit Reporting Act (FCRA). This federal law governs background checks for employment, housing, credit, and other purposes. FCRA compliance includes obtaining explicit written consent from the individual being screened and adhering to the “adverse action” process if employment is denied based on the report results. Furthermore, many states and localities have “Ban the Box” laws restricting the use of certain criminal histories, which these services also fail to navigate.

Using unreliable background checks can not only miss critical information for the general user, but it can also expose businesses to discrimination lawsuits, negligent hiring claims, workplace theft, violence, or reputational damage. If a candidate disputes inaccurate information in a free report, there is no method for reinvestigation or correction. Moreover, the sites that provide these services may lack proper security measures, risking exposure of sensitive data or even acting as fronts for phishing scams or malware.

Research shows that the average cost of a bad hire is $17,000. Relying on free or low-cost background checks may give a false sense of security, leaving critical red flags unaddressed and jeopardizing both legal compliance and workplace safety. 

Hiring a private investigator to run professional background checks, on the other hand, can uncover vital information that the free and low-cost screenings miss because it goes beyond surface-level data. They delve into public records, conduct discreet inquiries, uncover hidden issues, verify information with an expert eye, and ensure that the results are law-abiding, giving you the most accurate and complete picture in your search results.

Contact Aegemis for a free consultation to learn more.