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Employee Background Check Errors Harm Thousands of Workers

employee image and personal data, illustration

Some background checks utilize databases and public records.

Credit: WorkBloom

The vast majority of employers use background checks on prospective employees, according to the U.S. Consumer Financial Protection Bureau, but the background check data many HR providers rely on can be flawed, and the errors can damage lives and hopes.

Background check screening processes require time and labor but are increasingly automated. "A lot of these companies are just trying to throw technology at a problem that's really just a human problem," says Mike Coffey, president of Imperative Information Group, a background check screening firm.

Sterling Check and First Advantage say they will rely on AI and automation to generate background check reports. But their IPOs don't explain what type of AI their systems will use, other than machine learning.

The industry's use of AI is drawing concern. "It's really difficult to know exactly what their algorithms look like or what their matching practices look like because they don't share it and they refuse to," says Ariel Nelson, a staff attorney at the National Consumer Law Center.

From TechTarget
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