Why do some companies perform extensive background checks?

Asked 12 months ago - Austin, TX

I am applying for a temp position for an investment firm and the background check is quite extensive. It was also extensive for a bank position that I previously held. Are there legal reasons that these types of companies perform these more than other companies dealing with private information?

Attorney answers (3)

  1. Adam Kielich

    Contributor Level 18

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    Answered . Yes, because the investment firm has a duty to their customers to ensure the safekeeping of the customers' assets.

  2. Natalie Rebecca Lynch

    Contributor Level 11

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    Answered . Because negligent hiring cases cost more than backgrounds.

  3. Darrel S Jackson

    Pro

    Contributor Level 17

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    Best Answer
    chosen by asker

    Answered . It is fairly common to have to go through an extensive background check for positions that handle money or that deal with customer finances. If such an employer failed to conduct background checks, hired an employee with a history of dishonesty or theft, and then that employer stole money from a customer, then the employer could be in hot water.

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