A single bad hire can cost your company $240,000. A problematic tenant can destroy your property and disappear without a trace. A business partner with hidden debts can sink your venture before it starts.
These aren’t hypotheticals—they’re real scenarios that proper background investigations prevent every day. Yet many organizations still treat background checks as a box-ticking exercise rather than the strategic safeguard they should be.
Here’s how to conduct investigations that uncover what matters most.
1. Define the Purpose and Scope of the Investigation
Most investigations fail before they begin because nobody defines what success looks like. Before pulling any records or making any calls, answer these questions:
- What specific risks are you trying to mitigate?
- Which red flags would disqualify someone entirely?
- What level of scrutiny does this situation warrant?
A C-suite executive requires deeper digging than a part-time retail worker. A tenant with access to your $2 million property deserves more scrutiny than someone subletting a room.
2. Obtain Written Consent and Comply with Legal Requirements
Skip this step, and your entire investigation becomes worthless—or worse, a liability. Written consent isn’t just good practice; it’s often legally required. But consent alone isn’t enough.
Research the specific laws governing your jurisdiction and industry. Financial services, healthcare, and childcare sectors each have unique requirements. When in doubt, consult legal counsel before proceeding.
3. Use Reliable and Comprehensive Sources
The best investigations don’t rely on single sources—they triangulate information across multiple channels:
Public Records
- Criminal databases (local, state, federal)
- Court filings and judgments
- Property records and liens
- Professional license verifications
Professional Verification
- Direct contact with previous employers
- Educational institution confirmation
- Professional reference interviews
- Industry-specific credential checks
Digital Footprint Analysis
- Social media presence review
- Professional networking profiles
- Public communications and content
Tools like CROSStrax streamline this multi-source approach by aggregating data from various databases, but remember: automation doesn’t replace verification. Always confirm critical findings through direct contact.
4. Conduct Criminal Background Checks
Criminal history checks aren’t just about convictions—they’re about understanding patterns and assessing relevance. A 20-year-old misdemeanor might be irrelevant, while a recent pattern of financial crimes could be disqualifying for a treasurer position.
Search comprehensively:
- County-level records where the person lived and worked
- Federal databases for serious offenses
- Sex offender registries when applicable
- International records for global roles
5. Maintain Confidentiality and Data Security
When conducting background investigations, maintaining the collected data’s confidentiality and security is essential. Treat all personal and sensitive information carefully, following data protection regulations. Implement secure storage and disposal methods to safeguard the information from unauthorized access or breaches.
6. Protect Data, Respect Rights
Every piece of information collected in an investigation represents someone’s privacy and livelihood. That means strict safeguards are essential—store data securely, restrict access to only those who need it, and implement clear retention and disposal policies. A single data breach doesn’t just cost money—it erodes trust and can trigger regulatory penalties that devastate smaller organizations.
At the same time, investigations operate within a complex web of privacy laws, anti-discrimination regulations, and industry-specific rules. Information should be used only for its stated purpose, and never to make decisions based on protected characteristics. When potential red flags surface, focus only on job-relevant factors—for example, a bankruptcy might disqualify a candidate from handling cash but should have no bearing on their eligibility for a creative role.
7. Document Everything
Thorough documentation serves two purposes: it demonstrates due diligence and provides a defensible record if decisions are challenged. Record not just what you found, but how you found it, when you verified it, and why it influenced your decision.
8. Review and Analyze Findings
Raw data means nothing without analysis. Look for patterns across different information sources. Does the employment timeline have unexplained gaps? Do references seem rehearsed or evasive? Are there discrepancies between claimed and verified credentials?
The goal isn’t to find reasons to reject someone—it’s to identify genuine risk factors that could affect performance or safety.
9. Stay Updated and Leverage Technology
Modern investigation tools can process information at speeds impossible for manual research. CROSStrax and similar platforms can automate routine data collection, generate comprehensive reports, and integrate with existing HR systems.
But technology amplifies good processes—it doesn’t fix bad ones. Invest in training and clear procedures before investing in expensive software.
The Bottom Line
Conducting background investigations is a critical practice that enables organizations and individuals to make informed decisions, reduce risks, and maintain a safe and secure environment. By following these best practices, you can ensure thorough and accurate investigations while maintaining compliance with legal requirements and privacy regulations.
Leveraging reliable tools like CROSStrax can further enhance the efficiency and effectiveness of your background investigation process. Remember, investing time and effort in a comprehensive background investigation software is an investment in the safety and success of your organization.
To learn more about conducting efficient background investigations and how CROSStrax can streamline the process, know more here.
