How Background Screening Can Help Catch Identity Theft

Identity theft remains one of the fastest-growing crimes in the United States, impacting individuals, employers and businesses alike. As technology advances, so do the methods criminals use to assume another person’s identity: opening accounts, applying for credit or even securing employment under false pretenses. For employers, this presents a serious risk that extends beyond compliance concerns and into the realm of workplace safety and financial liability.

Table of Contents

• How Identity Theft Affects Employment Screening

  • The Role of Trace Reports in Identity Verification

  • Why Accurate Reporting Matters

• Protecting Businesses and Individuals Alike

How Identity Theft Affects Employment Screening

When a candidate’s identity has been compromised, their background screening report may contain inaccuracies such as false addresses, criminal records, or employment histories that do not belong to them. These errors can delay hiring decisions and complicate the verification process. More importantly, they highlight how identity theft can infiltrate systems designed to confirm a person’s integrity and qualifications.

The Role of Trace Reports in Identity Verification

A trace report is often one of the first steps in a background screening process. It provides a detailed look at names, aliases, addresses and Social Security number (SSN) usage history associated with a candidate. This information helps verify that the individual’s identity is consistent across various databases and records.

When inconsistencies appear, employers are required by law to provide candidates with a copy of their report and an opportunity to dispute any inaccurate information. While this process ensures fairness, it’s important to note that the burden of investigating and resolving identity theft falls entirely on the individual. Employers cannot intervene in the investigation, but they can ensure that candidates are properly informed of their rights.

For many individuals, this review process serves as an early warning system- alerting them to identity issues they might not otherwise detect. Without the background report, some would never know their information had been compromised.

Why Accurate Reporting Matters

Accurate background reports are critical for fair hiring and legal compliance under the Fair Credit Reporting Act (FCRA). MyHRScreens follows strict FCRA guidelines to ensure that all data reported is verified and that candidates have the opportunity to review and dispute any inaccurate information. This transparency not only protects applicants but also helps employers maintain ethical and compliant hiring practices.

Inaccurate or incomplete identity data can expose companies to significant risk, ranging from negligent hiring claims to reputational damage. By incorporating identity verification and trace reporting into the screening process, businesses can make informed decisions while safeguarding against potential fraud.

Protecting Businesses and Individuals Alike

Identity theft prevention begins with awareness and diligence. For employers, partnering with a background screening provider that prioritizes identity accuracy is a vital first step. For candidates, understanding the importance of reviewing their own background reports can help detect potential issues before they escalate.

At MyHRScreens, we combine compliance, accuracy and security to deliver trusted background screening solutions that protect both employers and the individuals they hire. Contact MyHRScreens today at 866-899-8970 ext. 118, or klewis@myhrscreens.com to learn more about how our comprehensive screening can support your background screening and verification needs. Or, schedule a convenient consultation below: