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Why do some companies perform extensive background checks?

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?

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Attorney answers 3

Best Answer

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.

My answers to questions posted on AVVO are intended to provide general information only, and are not intended to be legal advice. Employment law issues typically require a careful case-by-case analysis. Consequently, if you feel that you need legal advice, I would encourage you to consult in person with an employment attorney in your area.


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


Because negligent hiring cases cost more than backgrounds.

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