Understanding Background Check Red Flags: An Introduction (2024)

What makes a job applicant the right fit for a given role? Employers need to identify individuals with the appropriate skills and experience combination. Otherwise, how can you build an efficient team that does quality work? Assessing candidates is about more than taking a resume or cover letter at face value. The hiring process is the best time to do a background check for red flags that might change your mind about a candidate.

Why is thoroughly screening candidates worth the time, effort, and investment? When you do, what are the types of warning signs you should try to identify? Evaluating background check results and determining their impact on your decision-making process is key to choosing the right candidates.

Why are background checks for employment still necessary today?

Thoroughly screening job applicants is all about protecting your business and others. Hiring unqualified individuals can undermine the effectiveness of the work you do each day. Allowing someone who might use the job to cause harm or commit a crime is a serious risk. Safeguarding the public and other employees from potential violence is a factor, too.

Employers are responsible for making good-faith efforts to use care in hiring individuals. Lawsuits alleging negligent hiring practices could carry stiff penalties for businesses that can't demonstrate they did the due diligence necessary to prevent harm. Showing that you conducted a background check and considered any potential red flags is an essential safeguard against potential legal liability.

A background check involves more than just looking to see if someone has a criminal record. A thorough effort involves looking at other information and verifying its accuracy. For example, many employers will also look for red flags by doing the following:

  • Confirming an individual's educational history and graduation status.
  • Verifying an individual's employment history by contacting businesses.
  • Consulting an applicant's motor vehicle record.
  • Checking a credit report, in some cases.
  • Checking personal references.
  • Ordering a drug test.

Not all employers will need to use all types of screening, but each form of vetting can give a candidate the green light—or they might raise red flags you need to examine.

Understanding red flags in a candidate's report

A "red flag" in a background check could be any number of things. It might be a criminal record or a discrepancy between someone's resume and reality. Sometimes, those anomalies are simple mistakes; other times, they reveal that a candidate wasn't entirely truthful. What is important to remember at the

start, however, is that a red flag does not necessarily or automatically mean you should not hire a candidate.

Instead, many red flags indicate the need to look closer or ask additional questions. In some cases, a particularly severe finding—such as a previous murder conviction—might be enough to move on to other applicants. In others, a more nuanced assessment of the facts is necessary. That process has to begin with understanding how to identify problematic elements in the first place.

What shows up a in a pre-employment background check that might give an employer pause? In a recent white paper, "Red Flags on Background Checks," we looked at that question. Here's a quick look at some of our conclusions.

Key insights from our white paper

In our analysis, we identified several major areas where employers will most likely detect red flags if they exist. The breadth of these areas speaks to the need for a comprehensive employee background check. Some of the most common types of red flags include:

  • The presence of one or more misdemeanor or felony criminal records
  • Discrepancies between reported employment experience and verified work history
  • Falsely claiming possession of professional or technical licenses
  • Claiming a higher level of education or achievement than what a candidate actually obtained
  • Termination from a previous job
  • A history of poor credit (relevant only for positions where checking credit to hire is legal, such as for roles of financial authority)

Additionally, a candidate's refusal to submit to a background check can be a red flag on its own. Employers can legally decline to hire those who refuse a check without the need to proceed through the usual mandatory "adverse action" process.

In the complete white paper, we break down each category in depth and consider what employers should look for when making hiring decisions. Download it today for additional insights.

Finding background check services and supporting resources

At backgroundchecks.com, we aim to empower employers across many industries with access to the screening solutions they need today. Whether you need to place one order or a hundred, we have multiple offerings so you can find the one most suitable for your business needs. That leads to a key question: how much does a background check cost?

Our pricing page has all the information you need to know about ordering a criminal background check. You can choose an instant search of our criminal database, which contains hundreds of millions of records from nationwide sources, to get started. Need more detailed and local information? Add county court records to be even more thorough—and enjoy volume discounts on all our reporting products when you consistently need to screen new applicants. We also offer verification services for employment, education, and more.

There are many things to understand about background checks, and how to identify red flags is only a part of the understanding you need. In our Learning Center, you can find in-depth information on many topics with answers to all the most common background check questions. Dive in to better understand how to comply with background check laws, for example. The Learning Center, combined with our other online resources, lets you get up to speed on the important items to know.

Learn more about background checks and what employers need to know

Take a deeper dive into understanding background check red flags today with our complete white paper on the subject. With more detail, red flags, and insights into structuring a vetting process that works for your business, this valuable resource can be yours for free right now. Check it out and start evaluating how to factor background report results into your considerations more effectively right now.

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Understanding Background Check Red Flags: An Introduction (1)

AboutMichael KlazemaThe author

Michael Klazema is the lead author and editor for Dallas-based backgroundchecks.com with a focus on human resource and employment screening developments

Michael's recent publications

Understanding Background Check Red Flags: An Introduction (2024)

FAQs

What are major red flags on a background check? ›

Some of the most common types of red flags include:
  • The presence of one or more misdemeanor or felony criminal records.
  • Discrepancies between reported employment experience and verified work history.
  • Falsely claiming possession of professional or technical licenses.
Nov 1, 2023

How do you explain a bad background check? ›

  1. Make your presentation honest, clear and concise.
  2. Take responsibility for your actions without excuses or blaming others.
  3. Sincerely speak to the feelings you have regarding your behavior – show remorse.
  4. In a positive way, state the price you have paid and what you have learned from this experience.

What is a red flag on HireRight? ›

Employment history discrepancies as a red flag

These may include gaps in employment, frequent job changes, or discrepancies in job titles and responsibilities. These discrepancies could indicate issues such as lying on a resume, hiding periods of unemployment, or being terminated from previous positions.

How to tell a candidate they didn t pass the background check? ›

Send Pre-Adverse Action Notice

The Fair Credit Reporting Act, or FCRA, requires employers to send the candidate in question a pre-adverse action notice. This notice must include an explanation of the information you found, along with a copy of the background check.

What matters most in a background check? ›

Criminal History Matters Most

Unlike other background check components, criminal history is often considered a more direct indicator of a candidate's character and judgment.

How do I know if I failed my background check? ›

If you want to know whether you passed your check, you can either reach out to the employer who requested it or reach out to the background check company itself. Ultimately, you can fight for yourself, especially if you fail your background record check.

How worried should I be about a background check? ›

An employment background check is a normal part of the screening process for many jobs. If you've gotten this far in the hiring process and have been honest with your potential employer, you likely don't have to stress about what employers look for in a background check.

What fails a first advantage background check? ›

Common fails in First Advantage background check

Errors in the Reports: Perhaps the most common issue is errors or outdated information in the reports. It could be incorrect reports about a criminal history, errors in educational, financial, or any other information.

How to respond to a negative background check? ›

Your employer must disclose any reasons they denied your application due to a background check. You have sixty days to challenge any erroneous information found during your background check. You are able to resubmit to the background check after you have successfully challenged incorrect information.

What are red flags during the verification process? ›

One of the primary red flags during client verification is the presence of inconsistent or altered documentation. This could include discrepancies in the client's name, address, or other identifying information across different documents.

What is the red flag rule? ›

The Federal Trade Commission added title 16 of the Code of Federal Regulations (CFR), the Red Flags Rule, under the Fair and Accurate Credit Transactions Act of 2003. Red flags are suspicious patterns or practices, or specific activities that indicate the possibility that identity theft may occur.

What is the orange flag on a background check? ›

Orange not a Red Flag? A bad reference is not always a red flag, requiring immediate rejection, but it is often an orange flag deserving investigation. For example, the most common reason that people are fired is for poor performance/not meeting targets after employee evaluation.

Can a job offer be withdrawn after a background check? ›

The following are examples of situations where an employer may wish to rescind a job offer: The candidate fails a legally required drug test. The company can no longer afford to hire a new employee due to budget cuts or financial instability. A background check reveals convictions that relate to job duties.

Why would a company reject a candidate based on a background check? ›

Reasons why a candidate could "fail" a background check

There are many reasons why a candidate may “fail” a background check, from criminal history to discrepancies in employment or education history, or an unsafe driving record or failed drug test.

How do I know if I passed my background check at HireRight? ›

Under the “In Progress” tab, you will be able to see the current completed status of the background check you ordered.

What typically shows up on a background check? ›

The background check includes the following records searches: Criminal Felony and Misdemeanor (past 7 years, all counties, aliases, and maiden names revealed by a social security number trace), National Sex Offender, National Criminal Search, Education (highest degree), and Employment (past 7 years or previous two ...

What does major red flags mean? ›

Red flags are warning signs that indicate unhealthy or manipulative behavior. They are not always recognizable at first — which is part of what makes them so dangerous. However, they tend to grow bigger and become more problematic over time.

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