Background Investigations Flashcards
7 cards from real Private Investigator Exam practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Background Investigations flashcards as text
When conducting a background investigation on a candidate for a position of trust, what is the most important factor in determining the scope of the investigation?
Answer: The scope should be proportional to the sensitivity and risk level of the position
The scope of a background investigation must be proportional to the sensitivity of the position and the potential risks involved, balancing thoroughness with privacy considerations.
Under the FCRA, what is 'adverse action' in the context of employment background checks?
Answer: Taking a negative employment action based on consumer report findings, triggering required notice to the applicant
Adverse action under the FCRA means denying employment or another benefit based on consumer report information, requiring specific pre-adverse and adverse action notices to the applicant.
What does the term 'chain of custody' mean when applied to evidence gathered during a background investigation?
Answer: A documented record showing who has possessed evidence and how it has been handled and stored
Chain of custody is the documented record demonstrating who collected, handled, and stored evidence and when, ensuring its integrity and admissibility.
Which public records source would BEST reveal whether a subject has had a professional license revoked, suspended, or subject to disciplinary action?
Answer: State professional licensing board records
State professional licensing boards maintain public records of all disciplinary actions taken against licensees, including revocations, suspensions, and reprimands.
Why are fictitious business name (DBA) filings particularly useful in a background investigation involving a business entity?
Answer: They identify the true owner or owners behind a business operating under a trade name
Fictitious business name filings (DBAs) disclose the legal owner(s) behind businesses operating under trade names, which is essential for identifying the actual principals of an entity.
When investigating a subject's financial history, which federal court record would indicate that a creditor obtained a legal ruling requiring the subject to pay a debt?
Answer: Civil money judgment
A civil judgment is entered in court records when a court rules in favor of a creditor, creating a legal obligation for the debtor to pay the awarded amount.
During a background investigation, a PI discovers that a subject has used multiple different Social Security numbers. What should the PI do FIRST?
Answer: Document the finding thoroughly and report it to the client as a significant red flag
A PI's primary obligation is to document findings and report them accurately to the client; the client then determines what action to take, though the PI should clearly flag it as a potential identity fraud indicator.