Private Investigator Exam Background Investigations 1

Question 1

Which federal law governs how consumer reporting agencies may collect, disseminate, and use consumer information for background check purposes?

Accepted Answer

Fair Credit Reporting Act (FCRA)

Answer

The Fair Credit Reporting Act (FCRA) specifically regulates how consumer reporting agencies collect, share, and use consumer information, including background check data.

Question 2

When conducting a pre-employment background investigation, which document must a PI obtain before accessing a subject's consumer report under the FCRA?

Accepted Answer

Written authorization from the subject

Answer

The FCRA requires written authorization from the subject before a consumer report can be accessed for employment screening purposes.

Question 3

Which type of public record is most useful for establishing a subject's residential history during a background investigation?

Accepted Answer

Voter registration records

Answer

Voter registration records typically include current and historical addresses, making them one of the most useful sources for tracing a subject's residential history.

Question 4

The Social Security Administration's 'Death Master File' is primarily used in background investigations to accomplish which of the following?

Accepted Answer

Verify whether a Social Security number belongs to a deceased person

Answer

The SSA Death Master File allows investigators to verify if a Social Security number is associated with a person who has been reported as deceased, which can flag fraudulent identity use.

Question 5

Which type of background investigation specifically focuses on verifying academic credentials, professional certifications, and occupational licenses?

Accepted Answer

Credential verification investigation

Answer

Credential verification investigations are specifically designed to confirm the legitimacy of claimed degrees, professional licenses, and certifications.

Private Investigator Exam Practice Test

Private Investigator Exam Practice Test

Private Investigator Exam Background Investigations 1