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Selecting a Background Screening Provider: A Decision as Important as Your Next Employee

Trevor Kruer • March 17, 2025
When selecting a background screening provider, it's crucial to ensure they meet the highest industry standards. The right provider should be certified, compliant, and transparent in their processes. Here’s what you should look for—and what should raise concerns.

Essential Certifications & Accreditations

1. PBSA Accreditation
The Professional Background Screening Association (PBSA) offers an accreditation program that ensures background screening providers comply with industry best practices, including legal compliance, data security, and ethical standards. A PBSA-accredited provider demonstrates a commitment to excellence.

2. FCRA Compliance
The Fair Credit Reporting Act (FCRA) regulates how background checks are conducted. A reputable screening provider must be fully compliant with FCRA guidelines, ensuring accurate reporting, candidate rights, and proper dispute procedures.

3. SOC 2 Type II Certification
Data security is a top concern when handling sensitive applicant information. The SOC 2 Type II certification validates that a provider has strong security protocols to protect personal data against breaches and unauthorized access.

4. EEOC Compliance
The Equal Employment Opportunity Commission (EEOC) ensures that hiring practices, including background screening, do not discriminate against candidates. Your provider should align with EEOC guidelines to ensure fair hiring practices.

5. State and Industry-Specific Compliance
Different states and industries have unique requirements regarding background checks. Your provider should be knowledgeable and compliant with sector-specific regulations, such as:
  • DOT Compliance (for transportation and trucking industries)
  • Healthcare Sanctions Monitoring (OIG & GSA checks)
  • Ban-the-Box Laws (state and local restrictions on criminal history inquiries)

Red Flags to Watch Out For

1. Lack of Accreditation
If a background screening provider is not accredited by the PBSA or does not demonstrate compliance with major regulatory standards, this is a major red flag. Accreditation ensures reliability and adherence to best practices.

2. Inaccurate or Outdated Data
A quality provider should offer real-time data verification. If a company frequently provides outdated, incomplete, or inaccurate reports, it could lead to compliance issues and legal risks for your business.

3. No Clear Dispute Resolution Process
Under the FCRA, applicants must have the right to dispute incorrect information. If a provider does not offer a straightforward and responsive dispute resolution process, it could expose your company to legal liabilities.

4. Poor Data Security Measures
If a provider lacks certifications like SOC 2 Type II, they may not have the proper cybersecurity measures in place. Given the sensitive nature of background checks, working with a provider that does not prioritize data security can be a costly mistake.

5. Hidden Fees & Lack of Transparency
Reputable providers will offer clear pricing and service details upfront. If a provider has hidden fees, vague pricing structures, or refuses to disclose their processes, consider it a warning sign.


How to Verify

In addition to checking a background screening provider’s website and speaking with them directly, prospects can take the following steps to verify they follow best practices and hold the necessary certifications and accreditations:

1. Check Accreditation Directories
  • Visit the Professional Background Screening Association (PBSA) website to verify if the provider is PBSA-accredited. PBSA accreditation ensures compliance with rigorous industry standards.
  • Look at ISO certification directories if they claim ISO 9001 or ISO 27001 certification for quality management and data security.
2. Review Compliance with Legal and Regulatory Standards
  • Confirm they adhere to Fair Credit Reporting Act (FCRA) regulations, which govern how background checks must be conducted.
  • If hiring internationally, check if they comply with GDPR (General Data Protection Regulation) or other relevant data privacy laws.
3. Request Documentation and Compliance Reports
  • Ask for audit reports, compliance certifications, or security policies that demonstrate their adherence to best practices.
  • Review their terms of service and privacy policies to see how they handle sensitive data.
4. Evaluate Their Technology and Security Measures
  • Inquire about data encryption, cybersecurity measures, and secure data storage to ensure your company’s information stays protected.
  • Ask if they have SOC 2 or ISO 27001 certification, which validates strong security protocols.


Final Thoughts

Selecting the right background screening provider is about more than just cost—it’s about trust, compliance, and security. By choosing a provider with proper accreditations, compliance standards, and transparent practices, you can ensure a seamless and legally sound hiring process.

VeriCorp meets all industry standards and provides accredited, secure, and reliable background screening services. Contact us today to learn how we can help your organization maintain compliance and hire with confidence!
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