Real-World Impacts of Missing Aliases in Background Checks

By Turn Staff
On October 12, 2024

Case Study

In the world of professional recruitment, background checks are more than a mere formality—they are a critical step in ensuring the safety and integrity of the workplace. However, even the most comprehensive background checks can fall short if a crucial component is overlooked: aliases. An alias isn't always a sign of malicious intent, but it can often be a loophole that allows individuals with checkered pasts to slip through the cracks. Inaccurate or incomplete background checks can have severe, far-reaching consequences.

This post will delve into real-world case studies where missing aliases in background checks led to significant repercussions for companies. By understanding these stories, we aim to highlight the tangible risks and stresses on businesses and HR departments alike due to incomplete due diligence.

The Financial Sector: A Costly Oversight

The Scenario
In 2017, a prominent financial firm (we’ll call them “FinanceCo” for anonymity) hired an individual for an executive position requiring a high level of trust and access to sensitive information. The candidate provided a name that did not flag any issues in the background check.

The Oversight
Left unchecked were aliases the candidate had previously used in past employment.

The Consequence
Within two years, FinanceCo discovered discrepancies in account records and unauthorized transactions amounting to over $2 million. An internal investigation revealed that the executive had previously committed financial fraud under an alias, a fact that would easily have been flagged had a thorough alias check been conducted.

The Impact
The aftermath of this oversight was dire. FinanceCo faced not only financial losses but also irreparable damage to its reputation. Stakeholders lost trust, and the firm had to spend vast resources on damage control and enhancing their HR protocols. Additionally, the executive was terminated, and the firm faced legal repercussions for failing to ensure proper due diligence.

The Healthcare Industry: Patient Safety at Stake

The Scenario
An established healthcare provider (referred to as “HealthCare Inc.”) employed a nurse with impeccable credentials for their new pediatric wing. Routine background checks cleared the candidate without issues.

The Oversight
This nurse had previously been sanctioned and had their license revoked under a different name in another state due to malpractice.

The Consequence
It was only when a keen-eyed colleague recognized the nurse from a past news article that the facade began to crumble. Further investigation revealed a concerning history of professional misconduct and patient harm.

The Impact
HealthCare Inc. faced lawsuits from patients’ families, scrutiny from healthcare authorities, and significant media backlash. The hospital’s reputation took a severe hit, necessitating an overhaul of their hiring process and more stringent checks to prevent such an occurrence in the future.

The Education Sector: Safeguarding Students

The Scenario
A well-respected private school (we’ll call it “EduSchool”) hired a new teacher after completing the standard background checks which came back clean.

The Oversight
This teacher had previously worked at another institution under a different name, where allegations of misconduct with students had been raised but not criminally pursued.

The Consequence
Once employed, the teacher engaged in inappropriate behavior that led to severe emotional trauma for several students. The truth about the teacher’s past only came to light after concerned parents initiated an independent investigation.

The Impact
The school faced massive public outcry, legal ramifications, and a loss of trust from the community. Several families withdrew their children, and EduSchool had to invest heavily in crisis management, legal defenses, and implementing more robust hiring protocols.

Statistics and Data

According to a report by SHRM, companies with incomplete background checks experience a 30% higher incidence of on-the-job fraud. Another study by the National Association of Professional Background Screeners reported in 2018 that nearly 12% of background checks contain errors or missing critical information such as aliases.

Conclusion

The case studies highlighted above serve as stark reminders of the perils of incomplete background checks, particularly regarding missing aliases. These situations underscore the importance of thorough and meticulous background screening processes. By learning from these real-world examples, organizations can better appreciate the tangible risks and take proactive steps to ensure they don’t fall victim to similar oversights.

In the quest for a safe and productive workplace, rigorous background checks that consider all possible aliases aren’t just best practice—they are a necessity. Turn Technologies stands ready to assist companies in implementing these essential checks, ensuring a more secure and trustworthy hiring process.

By integrating comprehensive alias checks into your criminal background screening process, you can mitigate these risks and build a resilient and reputable organization.

For further details on how Turn Technologies can support your background screening needs, visit our blog or contact us directly. Together, we can ensure a safer and more trustworthy professional world.

Disclaimer:

Turn’s Blog does not provide legal advice, guidance, or counsel. Companies should consult their own legal counsel to address their compliance responsibilities under the FCRA and applicable state and local laws. Turn explicitly disclaims any warranties or assumes responsibility for damages associated with or arising out of the provided information.