Why Background Check Statistics Matter More Than You Think

Performing background checks has become an essential practice for individuals and organizations alike. 96% of organizations admit they conduct at least one background check on their job candidates.

89% of these organizations conduct them to protect employees, customers, and communities. For instance, countless news about workplace shootings and other violence feeds the need for background checks.

This article lists background check statistics illustrating the importance of thorough background screening in today’s society. More insights and information can be found below.

Statistics on Background Check 2023

There are available statistics on various background checks, ranging from criminal background check statistics to human resources and finance. We will tackle them all in the following sections.

Criminal Background Check Statistics

Criminal background check refers to the background screening relating to any crime. Many people have a criminal history.

Failure to do a background check on these people often results in violence, theft, and other illegal activities within the organization or community.

Here are some criminal background check statistics worth knowing:

1. 1 out of 3 Americans have a criminal record.

(The Sentencing Project)

That means around 70 to 100 million Americans have a criminal record. When performing a background check, these people will likely have a red flag on applying for a job or a gun permit.

Due to this, many Americans may face challenges in securing a job or firearms. The background check will reveal their criminal history and could negatively impact their selection chances.

2. States lacking universal background checks have a 30% higher rate of exporting crime guns than states with such screening.

(Giffords)

In the US, states that lack universal background check laws for gun purchases have a higher incidence of crime guns being transported across state lines than states requiring background checks for all gun sales.

Individuals who cannot pass background checks in their home state can seek to purchase firearms in states with less restrictive laws. They can transport these firearms to their home state for illegal use.

3. 80% of firearms used for criminal motives are bought from unlicensed sellers.

(Giffords)

Since unlicensed gun sellers don’t do background checks, many people can buy guns easily. Criminals can have access to firearms without being assessed. It makes it easier for them to commit violent crimes.

Meanwhile, 96% of people prohibited from owning guns when convicted of gun offenses also obtained firearms from these sellers. That’s because even though their cases were dismissed, the charges can still appear on their criminal record, preventing them from owning a gun.

4. 22% of US gun owners acquired firearms without a background check.

(Giffords)

An estimated 22% of US gun owners obtained firearms without a background check. This is millions of Americans owning guns each year with no questions asked. 

It has then been a source of controversy and debate regarding gun control and the prevention of firearm-related crimes.

5. Over 35% of individuals denied a permit to possess guns were convicted of felony offenses.

(Giffords)

Since the start of the federal background check requirement in 1994, over 3 million people have been denied a permit to purchase guns. Over 35% of these rejections involved people convicted of felony offenses.

This data suggests that conducting background checks helps identify and prevent potentially dangerous individuals from obtaining firearms.

6. 1,065,341 background checks have led to a gun permit denial because the buyer was convicted.

(Statista)

The Federal Firearms Licensees (FFLs) used the background checks done by National Instant Criminal Background Checks System (NICS) to decide a buyer’s eligibility to own firearms.

These are the reasons for federal denials resulting from NICS background checks and their corresponding number of rejections:

7. FBI background checks are accurate 99.3 to 99.8% of the time.

(Giffords)

According to the FBI’s quality control evaluations, background checks are accurate approximately 99.3% to 99.8% of the time. This shows that background checks effectively prevent people not allowed by law to own guns from getting them.

8. In 2017, 82% of companies screened potential employees for criminal histories.

(Urban)

Criminal background checks are essential for employment. Records of criminal activities are one of the information employers look for in a screening.

Of the 72% of companies that performed background checks in 2017, 82% screened applicants for their criminal histories.

9. 75% of employees have engaged in theft from their employer at least once.

(Forbes)

Based on the article by Forbes discussing employee theft, 3 out of 4 employees have stolen from their company. This implies that incidence is prevalent in organizations, big or small. 

Furthermore, this data proves the importance of background checks, which are essential to prevent these instances.

10. Over $50 million was recovered from employees who committed retail theft in 2022.

(Hayes International)

In the 2022 Hayes International Retail Theft Survey, out of 26 large retail companies and 22,182 stores, 44,834 employees were arrested. These companies recovered $50 million from these employees. This data is higher than the 2021 report by 14.7%.

Criminal background checks can somehow diminish this kind of employer monetary loss.

Human Resource Background Check

A background check in a job application is an integral step in employment. Human resources often conduct this to their applicants for various reasons. Here are a few data surrounding human resource background checks:

11. 63% of HR professionals conduct background checks for all workers.

(Screen and Reveal)

Only 63% of organizations conduct background checks for all employees, while 32% do it for full-time employees. 2% of HR professionals said they only run background checks for high-level employees, office workers, and those who will handle sensitive information.

12. In 2021, 91% of organizations conducted background screening for full-time employees.

(HR.com)

A survey conducted by HR.com in 2021 revealed that organizations primarily run background checks for full-time employees. Here’s how many organizations conduct background checks per employee type:

13. 87% of employers do background checks during the pre-employment stage.

(SHRM.org)

A large percentage of employers perform background checks during the recruitment process. For instance, Uber takes 3 to 5 business days to review an applicant’s records.

Before hiring, companies employ checks to evaluate candidates’ qualifications, past work experiences, and criminal history.

Society for Human Resource Management revealed the following data in 2019:

14. 41% of applicants are only willing to wait one week to 10 days to complete their background check process.

(Statista)

The job application process takes a while. Mostly because of the time background checks take. A standard background check takes 2 to 5 business days to complete.

In 2018, 41% of employees were willing to wait one week to less than ten days to complete the background check process. 22% can wait up to 2 weeks, while only 20% can wait for two weeks or more.

15. In 2022, 38% of companies conducted background checks as a precautionary measure to mitigate the possibility of future criminal activity.

(Short Lister)

Most companies run background checks on applicants to decrease the chance of possible illegal activities. Here’s the breakdown of the reasons:

16. There’s a 46% discrepancy in reference and credential verifications against applicants' information.

(AccuSource)

46% of reference and credential verifications indicated a discrepancy between the information applicants put in their resumes and what the screening revealed.

That’s another reason background checks are essential. It ensures that candidates have provided accurate information during the hiring process.

17. 42.5 million Americans have lied on their resume at least once.

(StandOut CV)

In 2022, 42.5 million Americans admitted to falsifying information on their resumes during job applications.

This highlights the prevalence of dishonesty in the job application process. It raises concerns about the reliability of candidate information during recruitment.

18. 54% of applicants have lied about their previous work experience.

(StandOut CV)

Most job applicants have lied on their resumes about previous work experience. This is likely because many applicants are young and need more experience. It becomes challenging for them to land a job accepting applicants without knowledge.

Based on StandOut CV, these are the typical lies applicants tell on their resumes:

Quite to popular belief that lying in your resume might take you further, doing it might actually hold you back. Even the little things can cost you the job, like what happened here:

19. 1 in 6 have used fake job reference services involving fake employers and paid actors.

(StandOut CV)

16.9% of applicants used phony job reference services. This involves creating fake employers and paying actors to pose as references. 

The average cost of references is around $145 each, showing the extent to which applicants are willing to go for a position in the organization.

Finance Background Check

Background checks are essential in the finance industry. Insider threats are prevalent in this industry, with over 1/3 of insiders targeting money in an electronic form.

With a loss of $100,000, banking and financial services is among the top sectors for workplace theft in 2022. Here are some statistics involving finance background checks:

20. There were reported 237 insider incidents impacting finance and insurance organizations from 1996 to 2018.

(Carnegie)

Between 1996 and 2018, 237 reported incidents of insider misconduct impacted finance and insurance organizations. This statistic highlights the need for background checks to prevent these occurrences in the future.

21. Nearly 98% of insiders in Finance and Insurance were motivated by the prospect of financial gain.

(Carnegie)

The Software Engineering Institute blog stated that almost 98% of insiders working in the finance and insurance industry were primarily motivated by financial gain. This shows the significant role of financial incentives in driving insider misconduct in the industry.

Final Words

Background checks are essential in various aspects of our lives. This helps lessen potential risks for individuals, organizations, and multiple communities.

These background check statistics show that they are essential in preventing individuals with criminal tendencies from gaining access to firearms. 

Moreover, background checks are becoming common in hiring processes. Many organizations incorporate this in pre-employment to prevent bad hires and keep their employees and customers safe.