Background screening companies handle vast amounts of sensitive information every day.
In this blog, you’ll learn why retention policies matter, the risks of storing too much data, and how companies like iprospectcheck help employers stay compliant and secure.
Key Takeaways
- Retaining too much background check data increases the risk of breaches, compliance violations, and reputational harm.
- Federal, state, and international regulations require employers and screening companies to follow data minimization guidelines and have clear retention rules.
- Partnering with trusted providers like iprospectcheck helps employers maintain secure and compliant background screening practices.
Why “More Data” Isn’t Always Better
It’s tempting to think that keeping every background report, application, and piece of identifying information might protect a company from future disputes.
But in reality, too much data increases exposure.
Sensitive personal data, like Social Security numbers, employment histories, addresses, or even fingerprints, can become a target for hackers and identity thieves if not properly managed.
Beyond security, holding onto data longer than necessary can create legal and compliance issues.
Regulators increasingly expect companies to follow data minimization principles, only collecting and storing what’s necessary, and keeping it only for as long as necessary.
Legal and Regulatory Pressures
Background screening companies operate under a patchwork of laws, and retention rules can vary depending on industry, state, and federal requirements.
A few key considerations include:
- Fair Credit Reporting Act (FCRA): Requires accurate, up-to-date data and places limits on how background check information can be used.
- EEOC Guidelines: Limit the use of certain background information in hiring to avoid discriminatory practices.
- State Data Privacy Laws: States like California (CCPA/CPRA) and Virginia (VCDPA) give individuals the right to request deletion of their data.
- GDPR (if applicable): For international companies, strict requirements mandate clear retention timelines and “the right to be forgotten.”
Holding on to outdated or unnecessary background check data could place a company in violation of these rules and expose it to lawsuits or fines.
Risks of Poor Retention Policies
Without clear data retention and disposal policies, background screening companies face several risks:
- Data Breach Exposure: The more data the company stores, the larger the potential damage in the event of a breach.
- Outdated Information: Old background reports may contain inaccurate or irrelevant data, leading to poor hiring decisions or legal disputes.
- Regulatory Fines: Non-compliance with privacy laws can lead to steep financial penalties.
- Reputation Damage: Mishandling sensitive personal information can erode trust with clients and applicants.
How to Build a Smart Data Retention Policy
The solution isn’t to stop collecting data – it’s to create policies that balance compliance, security, and business needs.
At iprospectcheck, we’ve seen firsthand how proper retention policies not only keep companies compliant but also help employers build trust with applicants by showing that their data is handled responsibly and securely.
A strong data retention strategy should include:
- Clear Timelines – Define how long data should be kept.
- Automatic Deletion Protocols – Use technology to delete data once it reaches its expiration period securely.
- Access Controls – Limit who can see stored data, ensuring only authorized staff have access.
- Regular Audits – Review stored data to confirm that retention policies are being followed.
- Client Education – Help employers understand what data they should and shouldn’t keep on file after a background check.
iprospectcheck: Secure and Compliant Background Screening You Can Trust
For background screening companies, too much data isn’t a safeguard – it’s a liability.
Smart data retention and disposal policies reduce risk, support compliance, and protect trust.
At iprospectcheck, we deliver quick, accurate, and compliant background checks while prioritizing data security.
Contact us today to learn more about our background check services: 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
What’s the safest way to dispose of old background check data?
Secure disposal methods include data shredding, wiping, or using certified digital deletion tools.
Simply deleting files from a system without proper sanitization may leave sensitive data recoverable.
Can job applicants request that their background check data be deleted?
Yes. Under laws like the California Consumer Privacy Act (CCPA/CPRA) and other state privacy acts, applicants often have the right to request deletion of their personal data once it’s no longer needed.
