Building a distributed team gives you flexibility, but it also increases the risk of hiring fake or unqualified candidates.
At iprospectcheck, we help employers reduce those risks with fast, accurate, and fully compliant background checks.
In this guide, you’ll learn how to screen remote workers and make smart hiring decisions.
Key Takeaways
- Employers hiring remote workers should perform background checks to protect against information loss, reduce fraud risks, verify experience and qualifications, maintain regulatory compliance, avoid unnecessary costs, ensure their candidates are who they claim to be, protect their brand’s reputation, and boost employee morale and client trust.
- Remote worker background checks typically include identity verification, criminal history, employment verification, professional license verification, credit history, and social media screenings.
- To check a remote candidate’s background, create a clear policy, train your HR team, get consent, time the check wisely, partner with a trusted provider like iprospectcheck, tailor the screening to the role, review results carefully, assess convictions individually, and follow the adverse action process if needed.
Why Should You Run Background Checks for Remote Employees?
1. Protect Against Information Loss
Remote employees need access to your systems, and often your sensitive data, to do their jobs.
For example, remote customer service agents and virtual bookkeepers may handle financial or client information directly.
Even with strong IT security, you still need to know you can trust them.
Background checks help protect your data by verifying identity, confirming work history, and flagging past fraud or misconduct.
2. Reduce Fraud Risks
Some remote roles involve handling money, approving transactions, or accessing internal systems that could be exploited.
For example, if you’re hiring remote payroll processors, procurement specialists, or billing coordinators, you need to be sure they have a clean and trustworthy history.
Background checks can reveal past fraudulent behavior, such as embezzlement or financial misrepresentation, helping you avoid costly internal fraud.
3. Confirm Candidates Are Qualified for the Role
Some applicants exaggerate or misrepresent their experience to land remote jobs they’re not equipped to handle.
This is especially common in roles like remote software development, cybersecurity, or technical support, where specific skills are critical.
Background checks help you confirm that a candidate’s past roles align with your job requirements, so you don’t waste time onboarding someone who can’t perform.
4. Maintain Regulatory Compliance
Certain industries, such as technology, finance, and healthcare, perform background checks to meet regulatory requirements.
Companies that operate in the gig economy and hire remote workers to drive must also complete background checks on prospective contractors to ensure they’re safe.
Industries required to perform background checks for in-office applicants must also run them for remote job candidates.
5. Minimize Unnecessary Expenses
Whether working remotely or in the office, a bad hire affects your company’s finances.
Poor hiring decisions lead to increased turnover and additional expenses for recruiting, onboarding, and training replacements.
Background checks help to confirm a candidate’s experience and qualifications so you can make informed hiring decisions.
6. Ensure Your Candidates Are Who They Claim to Be
Remote hiring makes it easier for candidates to hide their true identity, especially when the entire process happens online.
In recent cases, fake applicants have used stolen or fabricated identities, proxy interviewers, and even deepfake videos to get through the hiring process.
Background checks help spot fake candidates by verifying identity and other details to ensure the person you’re hiring is who they claim to be.
7. Protect Your Brand’s Reputation
Every employee you hire reflects on your organization, including those who work remotely.
Inadequate screening can lead to hiring someone with a history of misconduct or poor judgment, which can reflect badly on your company and damage your brand’s reputation.
8. Boost Employee Morale and Client Trust
Background checks on remote workers reassure existing staff and clients.
When you run background checks, your clients feel more confident that your telecommuting employees will handle sensitive information responsibly, and your team sees that you take workplace integrity and their well-being seriously.
Know Before You Hire
What’s Included in Remote Job Background Checks?
Background checks for remote workers commonly include the following searches:
Identity Verification
Identity verification is an initial search background check that companies like iprospectcheck perform.
This check confirms the applicant is who they claim to be.
Identity verification reveals the following details about an applicant:
- Names, including the full legal name and any aliases the applicant has used
- Address history
- Date of birth
Additionally, by using Enhanced Identity Verification, you can ensure that you are screening the actual person you think you’re screening.
Using advanced tools can enhance compliance, protect your brand, reduce liability, and lay the groundwork for better credential verification and background screening outcomes.
Criminal History
A criminal background check for employment typically includes:
- Criminal case number
- Jurisdiction
- Arrest date
- Type of crime
- Offense severity (misdemeanor/felony)
- Disposition and disposition date
- If available, sentence information
While a conviction shouldn’t be treated as an automatic bar to employment, you can look for offenses that indicate dishonesty and could put your company at risk.
It’s important to note that expunged, sealed, or pardoned convictions can’t be reported in states with expungement laws.
For example, under Colorado’s record sealing law, sealed records can’t be reported and are only accessible to law enforcement agencies and courts.
Record-holding agencies must answer “no” when they are asked whether the individual has a criminal record.
Employment Verification
Employment verification reveals the following details about an applicant’s current and former jobs:
- Employer names and addresses
- Employment dates with each employer
- Titles and positions held
Verifying your remote applicants’ work history helps you identify employment gaps or misrepresentations they might have made about their experience.
Education Verification
Education verification shows the following information:
- Names and addresses of the schools your applicant attended
- The dates they were enrolled
- Any degrees or diplomas they earned
This information helps you confirm the claims they’ve made on their resume and their qualifications for the job.
Professional License Verification
If you’re hiring for a remote job that requires professional credentials, professional license verification reports the following details:
- License number
- Licensee’s name
- License type
- Issuance date
- Expiration date
- Professional sanctions, suspensions, or debarments
This is especially important for remote positions in healthcare (e.g., telemedicine nurses), legal services (e.g., remote paralegals), or education (e.g., online instructors), where valid licenses are mandatory.
Credit Checks
If you’re hiring remote workers for jobs in the financial or insurance industries, you might want to include a pre-employment credit check as part of your background check.
This is a soft pull and won’t hurt your applicant’s credit score.
A pre-employment credit check shows the following information about an applicant’s credit history:
- Debt-to-income (DTI) ratio
- Available credit
- Other inquiries made
- Address history
- Debt collection accounts
- Bankruptcies (if applicable)
Social Media Screening
A social media check reviews a candidate’s public online activity to spot potential behavioral or reputational risks that might not show up elsewhere in the background check.
This screening typically reveals:
- Public posts, images, or comments related to hate speech, harassment, or threats
- Mentions of drug use or illegal activity
- Explicit or inappropriate content
- Disparaging remarks about past employers
- Sharing of confidential company information
Social media screening helps confirm that a candidate’s online behavior aligns with your company’s values and won’t pose a risk to your team, clients, or brand.
How to Run Background Checks on Remote Employees
1. Create a Compliant Background Check Policy
Before conducting background checks, create a thorough policy that includes processes to comply with all laws.
Your policy should include information about the specific steps your HR personnel should take before, during, and after they conduct background checks.
Detail the types of checks your company will perform for positions at various levels.
2. Train Human Resources and Legal Staff
Train your HR and legal staff on your background check policy and the laws that apply to the process.
Consider providing a checklist for HR to follow to ensure they don’t miss any steps.
3. Notify Applicants and Obtain Consent
Notify your virtual job applicants about your intention to conduct background checks. Send this notice as a separate form.
Ask for their consent, and don’t start a search until you receive it.
4. Time Background Checks Wisely
To save resources and time, time your background checks wisely.
It’s best to wait until you’ve identified a small number of finalists through interviews or have extended a conditional job offer to perform background checks.
Waiting avoids the cost involved with performing background checks on a broader pool of applicants.
5. Partner With a Reputable Provider
Choose a reputable background check company like iprospectcheck to receive accurate, reliable, and FCRA-compliant reports.
We have broad access to reliable information sources and advanced research skills.
We stay current with all background check laws to ensure your reports are compliant.
With our advanced technology, we are also able to return comprehensive background checks to our clients quickly.
6. Tailor Checks to the Job Role
Not every remote position requires the same level of screening.
To stay efficient and cost-effective, match the depth of your background checks to the responsibilities and risks of each role.
Here are a few examples:
- Remote software engineers: Focus on identity verification, employment history, and education to confirm skills and prevent fraud.
- Virtual accountants or financial analysts: Include credit checks and professional license verification to reduce the risk of financial misconduct.
- Remote healthcare staff: Run criminal background checks, license verification, and healthcare sanctions screening to ensure patient safety and regulatory compliance.
7. Review Results
When you receive results, carefully review them.
Contact the applicant and schedule the next steps if you decide to hire them.
On the other hand, if you are concerned about the information you learn in a background check, complete the following steps before you make a final decision.
8. Individually Assess Convictions
When an applicant has a conviction you learn about on a background check, assess it in terms of the job’s duties and workplace safety before you base an adverse hiring decision on that information.
9. Complete the Adverse Action Process (If Necessary)
If you decide not to hire an applicant because of something you learned in a background check, complete the following adverse action steps:
- Send a pre-adverse action letter to the applicant that identifies the information that concerns you. Include a copy of the report with the negative information highlighted and a copy of the form “A Summary of Your Rights Under the FCRA”.
- Give the applicant a reasonable time to respond with evidence that the information is wrong or that they have been rehabilitated. A reasonable response time is generally considered to be five business days.
- Send a final adverse action letter, together with a copy of the candidate’s FCRA rights, to the applicant if you make a final decision not to hire them after the previous steps.
Legal Considerations
The laws governing background checks apply whether you’re hiring remote or in-person workers.
Make sure you comply with the following laws:
Federal Laws
Fair Credit Reporting Act
The Fair Credit Reporting Act (FCRA) governs how consumer reporting agencies (CRAs), including third-party background check companies, collect, store, and report consumers’ sensitive information.
CRAs must comply with a seven-year reporting restriction for the following information when a job pays $75,000 or less per year:
- Debt collection accounts
- Chapter 13 bankruptcies (Chapter 7 bankruptcies can be reported for 10 years)
- Arrests that didn’t lead to convictions
- Civil lawsuits
- Civil judgments
- Paid tax liens
Employers must also comply with the provisions of the FCRA, including its notice and consent rules.
You must notify applicants that your company performs background checks. This notice must be on a separate form without other information.
Before starting a background check, you must get your applicant’s written consent. The authorization can be signed on paper or electronically.
The FCRA also requires you to go through the adverse action process when you decide not to hire an applicant based on information contained in a background check.
Title VII of the Civil Rights Act of 1964
Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on an applicant’s or employee’s protected status, including national origin, race, sex, color, religion, and others.
This law is enforced by the Equal Employment Opportunity Commission, which issued enforcement guidance on how employers should treat conviction records they learn about through background checks.
You should individually assess an applicant’s conviction in relation to the position’s duties before basing an adverse hiring decision on that information.
Fair Chance to Compete for Jobs Act
If your company has or is seeking federal contracts, you must comply with the Fair Chance to Compete for Jobs Act.
This law prohibits federal agencies from contracting with companies that ask about criminal history information or complete criminal background checks before they make conditional employment offers.
State Laws
State laws vary widely, so you’ll need to check the laws in your state to understand your legal requirements.
Some common laws to watch for include ban-the-box and credit history check restrictions.
Ban-the-box laws control when in the hiring process employers can ask about criminal history information.
Some states have enacted credit history restrictions for employment and limit their use to positions in the financial industry or those with access to sensitive information or money.
Consult legal counsel to understand the laws where you operate.
Trust iprospectcheck for Remote Worker Background Checks
You must ensure that all employees you hire are qualified, trustworthy, and able to perform their jobs, including remote workers.
At iprospectcheck, we perform background checks for companies across the U.S., including for employers hiring remote workers.
To learn more about our background checks and receive a free quote, call us today: (888) 509-1979.
DISCLAIMER: The resources provided here are for educational purposes only and do not constitute legal advice. Consult your counsel if you have legal questions related to your specific practices and compliance with applicable laws.
FAQs
How long does a background check for a remote employee typically take?
How long a background check for a remote employee will take depends on the searches you request.
We can complete most searches within a few hours to a few days. In-depth investigations might take longer.
How far back do background checks go for remote employees?
The FCRA limits how far back certain types of information on background checks can go when a job pays $75,000 or less per year.
For these jobs, you won’t receive information older than seven years about a candidate’s arrests that didn’t result in convictions, debt collections, paid tax liens, Chapter 13 bankruptcies, or civil lawsuits or judgments.
The FCRA doesn’t restrict the reporting of convictions, but some states limit how far back criminal background checks can go.
Employment, education, and professional license information can go back as far as you want, but most employers ask for information from the most recent few years.
Can I hire a remote employee with a criminal record?
Yes, you can hire a remote employee with a criminal record.
If an applicant has a conviction that does not relate to the job you’re considering them for, you can choose to hire them if you want.
Consider the conviction’s relevance to the job and any workplace safety concerns before you decide.
How much do remote employee background checks cost?
How much a background check for a remote job might cost depends on the searches you request and your industry.
At iprospectcheck, we offer numerous industry-specific packages and add-on searches at varying prices. We also offer volume discounts.
Contact us today for a free quote.
Do remote jobs do background checks?
Yes, many remote jobs require background checks, especially if the role involves access to sensitive data, financial systems, or internal tools.
Employers want to make sure that the candidates are qualified and trustworthy before giving access to their systems.
If you’re applying for remote jobs, it’s a smart move to run a personal background check first.
At iprospectcheck, we offer self-check services so you can see what employers might find and fix any errors before you apply.
