Due Diligence vs. Standard Background Checks: What’s the Difference?

In today’s complex business environment, background screening is no longer just a hiring formality—it’s a vital step in protecting your brand, assets, and people. But not all background checks are created equal. For businesses involved in high-risk industries or high-stakes relationships, the difference between a standard background check and a due diligence investigation can be the difference between security and exposure.

So, what sets the two apart? Let’s break it down.

A standard background check is typically used during the hiring process to verify a candidate’s identity, work history, education, and criminal record. These checks are designed to provide employers with a snapshot of an individual’s past to inform safe hiring decisions.

Common Features of Standard Background Checks:

• Criminal Record Search (county, state, federal)
• Employment Verification
• Education Verification
• Reference Checks
• Sex Offender Registry Search
• Motor Vehicle Report (MVR) (if applicable)

A due diligence background check goes far beyond the standard. It’s a deep-dive investigation used to uncover potential risks—legal, financial, reputational, or ethical—that a person or business may pose. This type of screening is often used when vetting executive hires, board members, business partners, investors, or acquisition targets.

Due Diligence Checks May Include:

• Civil Litigation Records
• Bankruptcy Filings
• Liens and Judgments
• Regulatory or Disciplinary Actions
• Media and Adverse News Searches
• Sanctions and Watchlist Searches
• Business Affiliations or Ownerships
• International Records (when applicable)

These searches are often more manual and investigatory in nature. At VeriCorp, our role in due diligence includes targeted civil and county record searches and identity verification services to support investigative efforts.

1. Scope and Depth

• Standard checks provide a broad overview for employment risk.
• Due diligence provides comprehensive detail for high-level decisions, such as investments, partnerships, and mergers.

2. Purpose

• Standard screening is focused on hiring compliance and safety.
• Due diligence screening is focused on risk mitigation, reputational protection, and legal exposure.

3. Customization

• Due diligence background checks are often tailored based on the type of relationship or transaction, unlike the more templated standard background screening packages.

Due diligence is especially important for:

• Private equity firms
• Financial institutions
• Legal teams
• Corporations evaluating mergers or acquisitions
• Nonprofits or foundations evaluating high-value donors or partners
• Government contractors
• Risk and compliance departments

While VeriCorp is not a full-scale investigative firm, we support due diligence clients by providing accurate, timely information that is critical to their process. This includes:

• ID verification
• Civil records research
• Criminal records research
• Patriot watch list
• Verified identity data
• Access to high-quality, up-to-date public record databases

If you’re making high-impact business decisions, conducting a standard background check might not be enough. Understanding the difference between standard and due diligence checks ensures you’re choosing the right level of screening for your situation.