Embezzlement, Fraud & White-Collar Crime: Screening for Financial Roles

Hiring someone to manage company funds, approve payments, or access sensitive financial records requires careful screening. A white-collar crime background check helps employers identify reportable criminal records involving fraud, embezzlement, and other financial offenses. Federal, state, and county searches cover different courts, so selecting the right combination matters.

For banks, accounting firms, and other U.S. employers, screening helps assess job-related risks and make informed hiring decisions. Sapphire Check provides customizable criminal background checks to help businesses verify candidates and choose the right screening services.

What Is a White Collar Crime Background Check?

A white-collar crime background check is an employment screening process that searches relevant criminal records for offenses involving fraud, financial misconduct, or abuse of trust. Employers use these checks to identify reportable criminal history that may relate to a candidate’s responsibilities, especially when hiring employees who handle money or confidential financial information.

White-collar crimes generally involve nonviolent misconduct, often motivated by financial gain. These offenses may involve deceptive transactions, falsified financial records, or misuse of company assets.

The Federal Bureau of Investigation (FBI) investigates offenses such as corporate fraud, healthcare fraud, mortgage fraud, and money laundering. These crimes can cause substantial financial losses and damage public trust.

A background check helps employers identify relevant records, but it cannot guarantee that an employee will never engage in financial misconduct.

What Types of White-Collar Crimes Can Background Checks Reveal?

Criminal background checks may reveal reportable records involving embezzlement, wire fraud, securities fraud, bribery, and other financial offenses. The results depend on where authorities prosecuted the offense, which courts the screening provider searches, and applicable reporting restrictions. Understanding these differences helps employers select appropriate checks for financial positions.

Common white-collar crime examples

Financial crimes can involve company funds, customer information, financial markets, or government programs. The following table explains offenses that may be relevant when screening applicants for financial responsibilities.

Crime	Description
Embezzlement	Misappropriating money or property entrusted to someone
Wire fraud	Using electronic communications to carry out a fraudulent scheme
Mail fraud	Using postal services as part of a fraudulent scheme
Securities fraud	Engaging in deceptive or unlawful investment practices
Money laundering	Concealing the illegal origin of criminal proceeds
Identity theft	Unlawfully using another person’s identifying information
Tax evasion	Willfully evading legally owed taxes

These offenses may fall under federal or state law. For example, a state-court embezzlement conviction may not appear in a federal criminal search.

Why fraud and embezzlement matter in financial roles

Consider an accounting manager who approves invoices, updates vendor information, and controls company accounts. The position provides direct access to company funds and payment systems.

When selecting screening services, the employer might consider federal and county criminal searches based on the position’s responsibilities and relevant jurisdictions.

A reportable embezzlement conviction may warrant further review, but employers must assess its relevance and follow applicable employment laws rather than automatically disqualifying the candidate.

Which Background Checks Reveal White-Collar Crimes?

Federal, county, and statewide criminal searches provide different types of criminal record coverage. Multi-state databases can also help identify possible records, although their information may require additional verification. Employers hiring for financial roles should select searches based on job responsibilities and relevant jurisdictions instead of assuming one database covers every offense.

Federal criminal background checks

Federal criminal searches examine records maintained by U.S. federal district courts. These searches may reveal reportable federal convictions involving wire fraud, bank fraud, money laundering, and other offenses under federal law.

The federal judiciary’s Public Access to Court Electronic Records (PACER) system provides access to federal court records. It does not include state or county court records, and certain documents are unavailable to the public.

A federal search can complement other criminal searches, but it does not replace them.

County and statewide criminal searches

County searches examine criminal records maintained by selected county courts. Statewide searches use available state repositories, although coverage and reporting practices vary.

For example, an employer conducting only a federal search could miss a fraud conviction prosecuted in county court. Combining appropriate searches helps employers address jurisdictional gaps.

Multi-state criminal database searches

Multi-state databases collect information from participating criminal record sources. They can help identify possible records across jurisdictions, but they do not provide complete coverage.

Potential matches may require verification through the appropriate court or official record source. Employers should confirm the verification procedures included in their screening package.

Comparing criminal background check options

Different searches serve different purposes. Employers can use the following comparison to determine which services may fit their screening needs.

Background check	Primary purpose	Main limitation
Federal criminal search	Search federal district court records	Does not cover state courts
County criminal search	Search selected county court records	Limited to selected counties
Statewide criminal search	Search available state repositories	Coverage varies by state
Multi-state database search	Identify possible records across participating sources	May require verification
SSN trace	Support identity and address history research	Does not establish criminal history
Employment verification	Confirm reported employment history	Does not establish criminal convictions

For employees who handle company funds or sensitive information, several searches may provide more appropriate coverage than one database alone.

Explore Sapphire Check’s criminal background check services to find a screening package that meets your hiring requirements.

How Does Screening for Financial Roles Work?

Screening for financial roles starts with identifying the position’s responsibilities and the records an employer needs to review. The process includes obtaining the required authorization, conducting appropriate searches, verifying relevant findings, and evaluating the results. A consistent screening process helps employers assess hiring risks while meeting applicable legal requirements.

1. Identify the screening requirements

Assess the employee’s access to financial accounts, payment systems, confidential customer information, and company assets.

A payroll manager who authorizes payments may need different screening from an employee who does not handle financial transactions.

2. Obtain authorization and conduct searches

Provide the required disclosure and obtain written authorization before ordering a covered employment background report.

Select appropriate federal, state, or county searches based on the position and applicable requirements.

3. Verify and review the findings

Confirm that potentially relevant records belong to the candidate. Review the offense, case status, disposition, and available identifying information.

The Consumer Financial Protection Bureau’s (CFPB) background-screening guidance explains the importance of accurate reporting, including procedures that prevent duplicate records and the reporting of legally restricted information.

4. Make a job-related decision

Evaluate verified findings in relation to the employee’s responsibilities. Consider the nature of the offense, the time elapsed, and applicable legal requirements.

Document the relevant considerations and complete any required adverse-action procedures.

What Can a White-Collar Crime Background Check Miss?

Even a thorough criminal background check cannot guarantee access to every financial offense. Results depend on the selected jurisdictions, available court records, reporting restrictions, and accurate identification. Employers should understand these limitations before interpreting a clear report as proof that an applicant has no relevant criminal history.

Common screening limitations include:

• Records outside the selected jurisdictions.
• Sealed, expunged, or otherwise restricted records.
• Incomplete or outdated database information.
• Incorrect identifying information or name variations.
• Financial misconduct that never resulted in an available criminal record.

For example, a federal-only search may miss an embezzlement conviction prosecuted in state court. An appropriate county or statewide search may provide additional information.

Background screening also works alongside internal controls. Payment approval procedures, separation of financial duties, and regular transaction reviews can help businesses manage financial risks.

Which Financial Roles Need White-Collar Crime Screening?

Employees who manage company funds, approve transactions, or access confidential financial information may require additional screening. The appropriate checks depend on their responsibilities, applicable regulations, and the risks associated with the position. Banks, accounting firms, and other financial organizations should establish screening requirements that reflect these factors.

Banking and financial institutions

Bank tellers, loan officers, and financial managers may handle customer transactions, approve loans, or access sensitive account information.

A background check for a bank job may include relevant criminal searches, employment verification, and other checks based on the position.

Banks must also consider industry-specific regulations.

Under Section 19 of the Federal Deposit Insurance Act, certain convictions and pretrial diversion arrangements involving dishonesty, breach of trust, or money laundering can restrict a person’s participation in the affairs of an insured institution.

However, the Fair Hiring in Banking Act and the FDIC’s 2024 regulatory revisions exclude certain older offenses, qualifying expunged or sealed records, and specified minor offenses. Employers must determine whether Section 19 applies and whether an exclusion or FDIC consent permits the individual’s participation.

The FDIC’s final rule on Section 19 explains these exclusions and their application.

Sapphire Check provides background checks for financial institutions to support employers navigating financial industry screening requirements.

Accounting and payroll positions

Accountants, controllers, and payroll managers often have access to company funds, financial records, and payment systems. Employers can consider federal and county criminal searches alongside employment and education verification. Positions that require professional licenses may also call for license verification.

Screening requirements should reflect actual job duties and applicable regulations.

How Can Employers Follow FCRA Requirements?

Employers using covered third-party background reports must follow the Fair Credit Reporting Act (FCRA). This includes providing required disclosures, obtaining authorization, and following the applicable adverse-action process. They must also comply with employment discrimination laws and relevant state or local restrictions when evaluating criminal history.

Obtain authorization before screening

The FTC’s Background Checks: What Employers Need to Know explains the disclosure and authorization requirements for covered employment background reports.

Employers must provide the required standalone written disclosure and obtain written permission before ordering a covered report.

Evaluate criminal history fairly

The Equal Employment Opportunity Commission (EEOC) provides guidance on evaluating criminal history in employment decisions.

Relevant considerations include:

• The nature and gravity of the offense.
• The time elapsed since the offense or completion of the sentence.
• The nature of the position.

An arrest alone does not establish that someone committed a crime. Employers should also avoid screening policies that violate applicable employment discrimination laws.

Follow the adverse-action process

When an employer considers an adverse decision based on a covered background report, the FCRA requires specific procedures.

Before taking adverse action, provide the applicant with a copy of the report and a summary of their FCRA rights. Give the applicant an opportunity to review the information.

If the employer proceeds with adverse action, provide the required notice and information about the reporting company and the applicant’s dispute rights.

Conclusion

Hiring for financial roles requires reliable screening information, accurate record verification, and a consistent approach to compliance. Sapphire Check offers nationwide background screening services, including federal, county, statewide, and multi-state criminal searches. Its customizable packages help employers select checks that fit their hiring requirements.

Contact us to find an appropriate screening package for your business.

FAQs

Do background checks show white-collar crimes?

Yes, criminal background checks may reveal reportable records involving fraud, embezzlement, and other white-collar offenses. Federal, state, and county searches cover different jurisdictions. Employers should select appropriate searches based on the position and understand their coverage limitations.

Does a federal background check show fraud convictions?

A federal criminal background check may reveal reportable fraud convictions prosecuted in federal court. These include certain wire fraud, mail fraud, and bank fraud offenses. State-level convictions may require separate county or statewide searches.

How far back does a white-collar crime background check go?

The reporting period depends on the record type, applicable laws, and screening service. Under the federal FCRA, criminal convictions generally are not subject to the seven-year reporting limit that applies to certain other adverse information. Arrests and criminal charges that do not result in convictions are subject to different reporting restrictions. State laws may impose additional limits, so employers should confirm the requirements applicable to their screening program.

Can employers reject candidates for white-collar crime convictions?

Employers may consider relevant convictions when making hiring decisions, subject to applicable laws. They should evaluate the offense, time elapsed, and relationship to the position. When a covered background report influences an adverse decision, employers must also follow the applicable FCRA procedures.