“Background check service data breach may affect 2.7 billion individuals!” 

In April 2024, a massive data breach exposed the personal information of 2.9 billion people worldwide, including the social security numbers of millions of Americans. It was alleged that the data collected by Jericho Pictures.Inc. doing business at National Public Data, exposed the information of millions of people that it had collected in its work for clients. This breach underscores the grave risks faced by background check companies, which handle highly sensitive personal data daily. 

When sensitive information is exposed, the consequences can be enormous. This isn't true for businesses like Jericho. Pictures. Inc., but also for governments, individuals, and everyone connected to their services. Whether online or offline, hackers pose a constant threat, jeopardizing personal data in increasingly sophisticated ways. A breach in the background check industry creates a domino effect, harming both the company and everyone whose data is compromised.

 

Index Background check and its importance Data breaches and their increasing frequency How Data Breaches Occur Consequences of Data Breaches Protecting Sensitive Information Conclusion FAQs

 

Background check and its importance

Background checks are an essential part of modern business and government operations. Whether you intend to hire a new employee, rent a property, or approve a loan, background checks provide you with the vital information required to make informed decisions. By verifying a person’s identity, criminal history, employment history, and other personal information, background check companies aid in gathering sensitive information for their clients to ensure trust and security.

However, as illustrated by the recent data breach at Jericho Pictures. Inc., the very nature of background checks makes them a prime target for cybercriminals. These checks involve collecting, storing, and analyzing highly sensitive data that, if exposed, can have devastating consequences for both individuals and companies.

It is one of the prime reasons why employers should be well aware of data breaches, and cybercrime while delegating background verification tasks. 

Data breaches and their increasing frequency 

In the background check industry, breaches are particularly alarming because of the nature of the data involved. Social security numbers, criminal histories, and financial information is frequently targeted by hackers, and background check companies are prime custodians of this sensitive information. Studies conducted by the University of Maryland's A. James Clark School of Engineering found that more than 2,200 cyberattacks occur each day! 

A data breach is the release of confidential, private, or otherwise sensitive information into an unsecured environment. It can occur accidentally or as the result of a deliberate attack.

Millions of people are affected by data breaches every year--this data speaks for itself. The victims of data breaches can range in scope from a doctor accidentally looking at the wrong patient’s chart, to a large-scale attempt to access government computers to uncover sensitive information. Protecting yourself and others starts with understanding how a data breach occurs.

                                      How Data Breaches Occur 

The assumption is that a data breach is caused by an outside hacker, but that's not always true. Reasons for how data breaches happen might sometimes be traced back to intentional attacks. However, it can just as easily result from a simple oversight by individuals or flaws in a company’s infrastructure.

Here’s how a data breach can occur:

• Lost or stolen credentials 
  The simplest way to view private data online is by using someone else’s login credentials to sign into a service. For background check companies, this might mean attackers gaining access to sensitive databases filled with private information.
  
  
• Lost or stolen equipment 
  A lost computer or smartphone that contains confidential information can be very dangerous if it falls into the wrong hands. 
  
  
• Social engineering attacks 
  This involves using psychological manipulation to trick people into handing over sensitive information. An attacker could pose as a trusted client of a background check company, seeking access to sensitive records.
  
  
• Insider threats 
  These involve people who have access to protected information deliberately exposing that data, often for personal gain. Examples include a restaurant server copying customers’ credit card numbers as well as high-level government employees selling secrets to foreign states. 
  
  
• Vulnerability exploits 
  Almost every company in the world uses a variety of different software products. Because software is so complex, it often contains flaws known as "vulnerabilities." An attacker can exploit these vulnerabilities to gain unauthorized access and view or copy confidential data. 
  
  
• Malware infections 
  Many malicious software programs are designed to steal data or track user activities, sending the information they gather to a server that the attacker controls. 
  
  
• Lack of encryption 
  If a website that collects personal or financial data does not use SSL/TLS encryption, anyone can monitor transmissions between the user and the website and see that data in plaintext.

Consequences of Data Breaches 

In many cases, data breaches cannot just be patched up with some password changes. The effects of a data leak can be a lasting issue for your reputation, finances, and more.

• For business organizations
  A data breach can have a devastating effect on an organization's reputation and financial bottom line. Organizations such as Equifax, Target, and Yahoo, for example, have been the victims of data breaches. Similarly, a data breach at a background check company can result in losing client trust and credibility, as their entire business revolves around handling and protecting sensitive information. Clients expect these companies to safeguard data, and failing to do so can result in long-lasting reputational damage and a loss of business. 
  
  
• For government organizations
  Compromised data can mean exposing highly confidential information to foreign parties. Military operations, political dealings, and details on essential national infrastructure can pose a major threat to a government and its citizens.
  
  
• For individuals
  Identity theft is a major threat to data breach victims. For individuals who have undergone background checks, breaches could expose critical information like their social security numbers, criminal histories, or employment records, leading to identity theft or fraud. Once a criminal has these details, they can engage in all types of fraud under your name. Theft of your identity can ruin your credit, and pin you with legal issues, and it is difficult to fight back against.
  
  While these are common cases, the harm done by data breaches can extend far beyond these situations. Hence, it is essential to protect your data and ensure that your data while handing it over, goes into safe hands. 

Protecting Sensitive Information

Here are some tips for protecting your data, although these actions on their own do not guarantee data security:

• Use unique passwords for each service
  Many users reuse passwords across multiple online services. The result is that when one of these services has a data breach, attackers can use those credentials to compromise users' other accounts as well. Background check companies should also enforce strong password policies for employees accessing sensitive databases. 
  
  
• Use two-factor authentication
  Two-factor authentication (2FA) is the use of more than one verification method to confirm a user's identity before they are allowed to log in. Background check companies should adopt encryption and access control measures to protect sensitive data. 
  
  
• Only submit personal information on HTTPS websites: 
  A website that does not use SSL encryption will only have "HTTP" in its URL, not "HTTPS" Websites without encryption leave any data entered on that website exposed, from usernames and passwords to search queries and credit card numbers. 
  
  
• Encrypt hard drives: 
  If a user's device is stolen, encryption prevents the attacker from viewing the files stored locally on that device. However, this does not stop attackers who have gained remote access to the device through a malware infection or some other method.
  
  
• Only install applications and open files from reputable sources
  Users accidentally download and install malware every day. Make sure any files or applications you open, download, or install are really from a legitimate source. In addition, users should avoid opening unexpected email attachments — attackers often disguise malware within seemingly harmless files attached to emails.

Conclusion

In today’s digital age, the importance of background checks cannot be overstated, but neither can the risks of data breaches. Companies like Check Xperts, which specialize in providing thorough and reliable background checks, prioritize data security to protect sensitive information. As a trusted leader in the industry, Check Xperts is committed to safeguarding client data while delivering accurate and comprehensive results. 

By staying vigilant and implementing the latest security measures, Check Xperts ensures that businesses, individuals, and governments can confidently rely on their services without compromising sensitive information. 

FAQs

1. What is the difference between a data breach and a hack? 
   A data breach is the unauthorized exposure of sensitive information, while a hack is the act of breaking into a system to gain unauthorized access. Check Xperts ensures by using the latest cyber security measures that their systems are secure against both breaches and hacks, safeguarding the integrity of their background check services. 
   
   
2. Are there legal penalties for companies that experience data breaches involving background check information?
   Companies that experience data breaches involving background check information can face legal penalties such as fines, lawsuits, and regulatory sanctions depending on data protection laws like GDPR, CCPA, and FCRA 
   
   
3. How can I ensure the security of my data when using a background check company?
   To ensure the security of your data when using a background check company, verify that the company uses strong encryption, follows strict data protection protocols, and is compliant with relevant privacy laws like Check Xperts.