Background Investigations

How Much Does a Background Investigation Cost?

How much does a background investigation cost … or … what are the fees for a background investigation?

This, of course, is always one of the first questions someone has when they are considering paying for a background investigation.

The short answer is a background investigation can cost anywhere from a few hundred dollars to thousands of dollars.

Or if you want to conduct a background investigation like the FBI does, it will cost you several hundred thousand dollars.

What you may need is something in between the various $19.95 online services and the several-hundred-thousand-dollar background investigation.

You want something that will give you peace of mind—in-depth, nonbiased, fact-based information that does not compromise accuracy.

As with any service, the more involved the project (in terms of both time and expenses), the more it is going to cost. And also as with any service, neither the cheapest nor the most expensive company is always the best choice.

Here are some general cost guidelines:

Red Flag Background Investigation ($500 to $1500)

A red flag background investigation will confirm the subject’s background information as well as highlight potential adverse information in order to help you make a more informed decision. A search of information at this level would include researching numerous proprietary databases, public records, news media and government repositories, with a focus on identifying critical red flags and warning signs of potential fraud; this information could be critical to know before you enter into a business or financial relationship, investment, or other transaction with the subject.

Professional Background Investigation ($1500 to $2500)

While a red flag background investigation is designed to identify essential adverse issues, a professional background check digs deeper into the individual’s professional history, business interests and financial status, as well as any issues relating to civil litigation and regulatory issues. A professional background investigation goes beyond online searches and includes a range of on-site court searches in the relevant jurisdictions and a detailed review of select records.

Comprehensive Background Investigation ($2500 and up)

A comprehensive background investigation gives you the most complete picture of the individual. It includes everything described above, plus additional analyses and reviews of business interests, court filings and news media appearances, as well as intelligence from sources that cannot be gained elsewhere. In addition, the comprehensive background investigation may include a review of assets and credit history (with written consent of the subject), source inquiries, asset information, and political contributions to identify conspicuous consumption warnings or close political connections.

This post is part of a series of posts titled Background Investigations 101 – What You Need To Know.

April 23, 2013/by Brian Willingham

Background Investigations

Red Flags in a Background Investigation [INFOGRAPHIC]

Quick! What is the first thing you think of when you hear that there was some type of warning or “red flag” in a background check/background investigation?

If you are like most people, you probably think of criminal records … and rightfully so.

Criminal records are the most important piece of a background investigation. (Doing a criminal record check properly is also critical, but I digress.)

Dig Deeper: How to Conduct a Criminal Background Check Like an Expert

Would you be surprised to know that criminal records are not the only piece of a background investigation?

While criminal records are a clear warning, the truth of the matter is most people don’t have criminal records. The fact that there are no criminal records against an individual doesn’t mean that there are no warning signs.

For example:

Would you hire a controller who wasn’t a CPA like they said they were? Or had just filed for bankruptcy?
Would you hire a nanny who had filed a civil lawsuit against the last three families she worked with?
Would you invest with a hedge fund manager who didn’t go to Harvard University like he said he did?
Would you want to partner with someone whose secretary just had filed a civil lawsuit alleging that he harassed her?

In most instances, the answer is pretty clear.

The point here is that criminal records, while they are the proverbial “smoking gun” of a background check, are not necessarily the only warning sign. There are literally hundreds of potential warning signs that can be identified during an in-depth, comprehensive background investigation.

In the attached infographic, we have included some of the most common warning signs and red flags in a background investigation, ranging from unreported work histories and falsified military careers to discrimination lawsuits, multiple divorce filings and hidden corporate interests.

These red flags are broken down into five areas:

Criminal Involvement – This is the classic red flag of any individual who has been involved in criminal activity.
Professional Concerns – There are many stories of business leaders, politicians or coaches falsifying their credentials … but they aren’t the only ones.
Personal Life – How someone leads their personal life can provide clues about their performance elsewhere.
Financial Issues – Of course, there is nothing wrong with owning a McMansion or a Bentley, but when your income doesn’t match your spending, there is reason for concern.
Legal Entanglements – A pattern of behavior that includes numerous legal entanglements or regulatory complaints can be a major concern.

Final Thought

There are numerous red flags that can come out in a background investigation other than the discovery of the obvious proverbial axe murderer.

The bigger question is, will you spot it?

This post is part of a series of posts titled Background Investigations 101 – What You Need To Know.

April 16, 2013/3 Comments/by Brian Willingham

Background Investigations

What Is Included in a Background Investigation?

There are a number of things that are included in a background investigation that go beyond what is looked at in a typical background check.

While a background check typically includes criminal background checks, driving records (if the job demands the skill), verification of past employment, verification of academic degree and a credit check, a background investigation gathers information from various disparate sources to create a more accurate, comprehensive and complete picture of a person’s past.

Each investigative firm will have its own set of information that is researched, but in the most comprehensive forms of a background investigation, the following information should be included in a background investigation:

1Personal Identifier Verification – Identifiers such as a date of birth and Social Security number are key to linking criminal records, bankruptcy records and other public records to the subject of the extensive background check.

2Address History Verification – Knowing where the individual has lived is critical to determining which courts are necessary to search in order to identify any historical civil and criminal history, and to find information from other public records sources.

3Professional History Verification – A timeline of any employment affiliations, board memberships and nonprofit affiliations can show a history of affiliations with organizations riddled with scandals.

4News Media Review – Most people are under the false impression that all news media publications are easily accessible on the Internet. Historical and international comprehensive news media can identify past issues that can’t be found on the Internet.

5Internet Searches – With the explosion of social media and the perceived “anonymity” of the Web, some people will put just about anything on the Internet.

6Corporate Affiliation – U.S.-based corporations where the individual is a corporate officer or registered agent can identify businesses or hidden affiliations.

7Criminal Record History (State and Federal) – Checking local and state criminal records is one of the most important facets of a background investigation. It’s essential to conduct research at local courthouses or at other official government repositories of information.

8Civil Litigation (State and Federal) – As with criminal record history, it’s essential to conduct research at local courthouses, official government repositories, or proprietary databases that cover the jurisdictions in which the individual has lived. Records of civil litigation can identify disputes with previous business partners, harassment allegations or a history of litigiousness.

9Bankruptcy Records – A history of bankruptcy or financial issues could reveal critical financial details.

10U.S. Tax Court Records – U.S. Tax Court records can reveal unpaid taxes or disputes over taxes, which can lead to further information on income or assets.

11UCC Filings – Has the person been a creditor or debtor in any UCC filings? Did he or she pledge any assets as part of financing?

12Assets – Information relating to real property, motor vehicles, watercraft and aircraft records may show a pattern of living beyond one’s means.

13Judgment Filings – A history of judgment filings may identify a history of financial issues and/or litigiousness.

14Lien Filings – Similar to judgment filings, historical state or federal tax liens may show a history of financial trouble.

15Department of Motor Vehicle Records – A driving record request can identify traffic violations and, in most states, driving under the influence records, which some states consider a criminal record.

16Professional Licensing Verification – Records with local, state or federal regulatory bodies may reveal regulatory actions against professional licensees, such as a certified public accountant, doctor, nurse, an attorney or even a private investigator.

17Professional Affiliations – In addition to having a professional license, professionals typically are affiliated with organizations that award certain credentials or designations, but you don’t know if they are really part of the organization unless you check.

18Financial Regulatory Searches – Especially for individuals who have previously served in the banking or financial industry, searches of records belonging to financial regulatory bodies may identify previous violations or regulatory matters.

19Government Compliance Lists – A review of government compliance lists can identify sanctions from regulatory bodies or politically exposed persons around the world.

20Campaign Contributions – Political contributions may identify strong political ties or connections with polarizing political groups.

This post is part of a series of posts titled Background Investigations 101 – What You Need To Know.

April 9, 2013/1 Comment/by Brian Willingham

Background Investigations

Types of Background Checks

Background checks are all the rage now. It’s a term that gets thrown around a lot these days.

There are background checks for gun purchases.

Background checks for employment purposes.

There’s the “Instant Background Check.”

Government background checks for security clearance.

Nanny background checks.

There is even a school in the Chicago suburbs that conducts a “criminal background” check via a “national database” for every visitor to the school.

You get the idea. Everyone’s doing them.

Will the real “background check” please stand up?

The term “background check” is so overused. In every instance noted above, a background check means something completely different.

There are many types of background checks depending on the situation.

To purchase a gun, your name gets run through National Instant Criminal Background Check System, or NICS (which is not accessible to the public).

For employment purposes, they may verify your highest academic degree, some of your employment history and check your criminal history over the last seven years. They may even do a credit check and a social media check “if you are lucky.”

And for the school in the Chicago suburbs, maybe they are using the mythical national criminal records check.

Or for a nanny background check, you may choose to do a $19.95 online instant national complete background check.

Lots of investigative firms offer background check services as well, some charging as little as $75 for a “nationwide background check.”

Types of Background Checks

Government Background Check

Background checks in this category include checks when purchasing a gun, seeking government security clearance or applying for a government job. The depth of these background checks varies greatly depending on the purposes of the background check. For gun purchases, it may be as simple as accessing NICS, while high-level presidential appointees go through a rigorous investigation.

Employment Background Check

Employment background checks typically involve criminal background checks (which can be limited in scope depending on the state), driving records (if the job demands the skill) and verification of past employment and academic degree.

In some cases, the background check will include a credit check; according to the Small Business Administration, this is currently done by 60 percent of employers.

Online Background Check

This type of check is also known as an instant background check, national background check, complete background check or online instant national complete background check. There are literally hundreds of websites that offer to conduct commercial background checks. The depth and quality of these online background checks vary greatly depending on the information contained in the databases.

As we have pointed out in previous posts, there are gaping holes in these databases and it is highly recommended that you read the fine print. For example, an online instant national complete background check would never catch someone lying about military service.

Do-It-Yourself Background Check

There are a number of resources available for individuals to conduct their own background checks. After all, as we have previously discussed, for the most part a background check utilizes open source records. It’s just a matter of understanding how to access the information.

For example, in Connecticut, anyone can conduct a statewide criminal background check through the Connecticut Department of Public Safety.

Of course, hiring a professional who does this on a daily basis using their expertise is an ideal solution, but it may not always be cost effective or necessary.

Professional Background Investigation

A professional background investigation is more than just checking a few sources, passing along raw data or punching a name into a couple of databases. A background check utilizes hundreds of different data points and collects and analyzes that information for misrepresentations, inconsistencies or omissions. A background investigation goes beyond the typical red flags and provides a comprehensive picture of an individual.

This post is part of a series of posts titled Background Investigations 101 – What You Need To Know.

April 2, 2013/by Brian Willingham

Background Investigations

Background Check vs. Background Investigation

While the terms background check and background investigation are frequently used interchangeably and, in fact, we use the terms interchangeably on this website, there is a big difference between the two.

What Is a Background Check?

A background check is a quick way to verify the integrity of a person, and includes inputting a name into one or more databases and passing the raw data along to the end user.

The information in these databases varies, but may include millions of public records, including address history, date of birth, Social Security numbers, names of relatives and in some cases, property records, judgments, liens and bankruptcies. These databases can contain much more information, but by and large, the information described above is what is commonly found in these databases.

Seem simple enough?

What makes things more complicated is that there is no standard as to what information is checked and there is no standard database to use as a source. Each database provider has its own set of data, with completely different records.

In addition to database searches, for employment purposes, a background check may also include verification of one’s highest academic degree or professional license or employment. It may also include a credit check, although the effectiveness and legality of reviewing credit history has been widely debated.

Dig Deeper: Can a Private Investigator Get a Credit Report?

Information in a background check is only as good as the information that is being searched in the databases, and the information contained in these databases varies greatly.

For example, one of the biggest misconceptions is that these databases contain every record from the entire country. This misconception is spread by various databases that make claims of things like “nationwide criminal record searches.” The truth is, there is no such thing and any claim to the contrary is flat-out wrong.

Dig Deeper: The Mythical National Criminal Records Check

So … What Is a Background Investigation?

For those of you not interested in the cheapest way to do it, or the fastest way to do it, but who want to dig deep into a person’s past, a background investigation is the more appropriate way to go.

The fact of the matter is that a background check only scratches the surface and may leave gaping holes in a person’s past.

Dig Deeper: Case Study – Preliminary Background Check Identifies Criminal Investigations

A background investigation is more than just passing along raw data or punching a name into a couple of databases.

Here is what a background investigation is:

A comprehensive, exhaustive search of publicly available documents that goes beyond online searches and includes a range of on-site court searches in the relevant jurisdictions to cover the gaping holes in online coverage.
Scouring public records, court records, divorce filings, probate records, state criminal repositories, property records, assessors’ offices, regulatory filings, court clerk records, UCC filings, and corporate documents, and may include interviewing sources, neighbors or opponents in litigation.
Analyzing records for misrepresentations, inconsistencies, financial problems, fraud, omissions, sanctions, suspensions, disbarments, fines and false statements.
A thorough, more comprehensive picture of a person through in-depth analysis of fact-based, unbiased information.

Final Thought

While the definition of a background check vs. a background investigation may be a matter of semantics, the bottom line is that most background checks only scratch the surface of what can be found and can provide you with a false sense of security.

A background investigation, on the other hand, provides you with peace of mind, in-depth analysis and fact-based, unbiased information that may not obvious on the surface, allowing you to make a more informed decision about the person who is the subject of the inquiry.

This post is part of a series of posts titled Background Investigations 101 – What You Need To Know.

March 26, 2013/by Brian Willingham

Background Investigations

What Is a Background Investigation?

So, what really is a background investigation?

A background investigation takes on many shapes, forms and sizes, and is dependent on how far you want to dig into a person’s past, how much you are willing to pay for the investigation and the type of access authorized within the law.

Definition of a Background Investigation

A background investigation is the process of obtaining and collecting data from public, proprietary and other sources to determine: 1) if the person is who they say they are, 2) if the person has any adverse history and 3) the authenticity of the person’s qualifications and character.

A background investigation can take on numerous forms and the level of the information included in the background investigation is largely dependent on 1) access to information, 2) how much you are willing to pay for the information and 3) how far you want to dig into a person’s past.

Let’s break this down a little further.

Three Basic Questions in a Background Investigation

Is the person who they say they are?

A critical first step is to verify the basic details pertaining to an individual, such as a person’s name, date of birth, Social Security number and address history. Additionally, confirming that the person is not on any government watch lists, a convicted sex offender or really a wanted terrorist.

Is there any adverse history?

In addition to reviewing state and federal criminal histories, adverse history searches can include a review of any civil litigation history, bankruptcy records, judgments, and liens as well as any derogatory news media articles. It may also include reviewing social media sites for references to this person.

Can we authenticate their qualifications and character?

This would include verifying the authenticity of professional details such as employment history, education history and professional licensing history, as well as uncovering any sanctions, disputes or complaints. This may also include interviews with colleagues, business partners or adversaries to develop information outside of the public domain.

Factors To Consider

The background investigation can take on several forms, depending on several factors.

If someone working in the federal government is doing a background investigation for security clearance purposes, he or she has to have access to certain nonpublic information. The FBI background check on Steve Jobs, however, is an example of the need to access public information as well.

Dig Deeper: How to Conduct a Background Check Like the FBI

Similarly, when you purchase a gun, your name gets run through the National Instant Criminal Background Check System, or NICS, which is a nationwide criminal record repository that is also not publicly available.

For an investigator or any background screening firm, information in a background investigation is gathered from public and proprietary sources. While it may also include a review of a person’s credit history or personal financial details, this data can only be obtained with specific consent.

How Far Do You Want to Dig Into a Person’s Past?

There is a big difference between a background check and a background investigation. While we will dedicate some more time to this in a future post, in general, a background check is typically a quick way to quickly verify the integrity of a person by inputting their name into one or more databases and passing the raw data along to the end user.

Typically the information in a background check is not vetted or verified. Information in these databases can be incomplete, incorrect or stale. More troubling, the databases are usually not what they say they are, especially with regard to key areas such as criminal records.

Dig Deeper: Warning: Online Background Check Services Are Not What You Think

A background investigation is much more thorough and complete, and it includes scouring various public and proprietary databases, and analyzing and vetting the information for misrepresentations, inconsistencies, omissions, sanctions and false statements.

How Much Are You Willing to Pay?

I am sure you have seen various online services offering free or low-cost background checks. The reality is that most of the online criminal check databases and online background checks provide little more than a false sense of security.

A background investigation provides a much more thorough and accurate picture of an individual. Of course, with thoroughness, accuracy and depth, you are going to pay more.

This post is part of a series of posts titled Background Investigations 101 – What You Need To Know.

March 19, 2013/by Brian Willingham

Background Investigations

Background Investigations 101 – What You Need to Know

Background investigations and background checks are all the rage now.

You can read news almost every day about background checks for gun purchases, background checks for employment purposes, federal government background checks for security clearance purposes, and nanny background checks.

There is even a school in the Chicago suburbs that conducts a “criminal background” check via a “national database” for every visitor to the school.

The confusing part is that each one of the “background checks” described above is something completely different!

What’s even more confusing is that a background check and a background investigation, although technically similar, are really completely different.

Needless to say, it’s a confusing mess.

Have no fear … we are here to help.

We have created a series of posts to explain some of the areas of background investigation and background checks.

Among the topics we will explore in this series include:

Sound interesting?

If you don’t want to miss anything, sign up for free email updates.

March 13, 2013/by Brian Willingham

Background Investigations

Background Check Questions and Answers [Video]

A few weeks ago, I did a Google Hangout question and answer session regarding background checks with Pamela Hay of Broad Range Investigations, hosted by PInow.com.

Among the questions we tackled:

Scenarios to conduct a background check
Information you must provide for a background check
Why an investigator can complete a better background check than a website
A criminal background check vs a complete background check
Information people tend to hide from a background check

Red Flag Background Investigation ($500 to $1500)

Professional Background Investigation ($1500 to $2500)

Comprehensive Background Investigation ($2500 and up)

Enjoyed What You Read?

Would you be surprised to know that criminal records are not the only piece of a background investigation?

Final Thought

Enjoyed What You Read?

Enjoyed What You Read?

Will the real “background check” please stand up?

Types of Background Checks

Government Background Check

Employment Background Check

Online Background Check

Do-It-Yourself Background Check

Professional Background Investigation

Enjoyed What You Read?

What Is a Background Check?

So … What Is a Background Investigation?

Final Thought

Enjoyed What You Read?

Definition of a Background Investigation

Three Basic Questions in a Background Investigation

Is the person who they say they are?

Is there any adverse history?

Can we authenticate their qualifications and character?

Factors To Consider

How Far Do You Want to Dig Into a Person’s Past?

How Much Are You Willing to Pay?

Enjoyed What You Read?

Have no fear … we are here to help.

Enjoyed What You Read?

Among the questions we tackled:

Scenarios to conduct a background check:

Information you must provide for a background check:

Why an Investigator can complete a better background check than a site:

Information that people try to hide from a background check:

￼A criminal background check vs. a complete background check:

Enjoyed What You Read?

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A criminal background check vs. a complete background check: