In a previous post, we explored the dangers of negligent hiring and the importance of conducting thorough background checks. Today, we’re focusing on a powerful but often overlooked tool in that process: the National Federal Search. This search plays a critical role in ensuring your background screening is truly comprehensive and capable of uncovering serious convictions that could expose your organization to significant risk.
What are Federal Offenses?
Federal crimes are those that violate U.S. Federal law (Title 18 & 26 of the U.S. Code among others). They are investigated by Federal law enforcement (FBI) and are prosecuted by U.S. States Attorneys in the 94 U.S. Federal District Courts by Federal Judges.
With this in mind, there are key differences in how federal offenses are caught between National Federal Searches and the National Criminal Search.
How is a National Federal Search different from the National Criminal Search?
It’s a common misconception that the National Criminal Search, which is the foundation of all background screening packages, will catch all felony offenses but that’s not the case. The National Search is a search of the ‘state’ prisons and does not include federal prisons, which operate completely separately, including their reporting of records. So, to find a federal record, a National Federal Search must be run.
Federal crimes are extensive and can include drug or gun trafficking across state lines, gang violence, mortgage fraud, credit card fraud, counterfeiting, money laundering, kidnapping, advocating the overthrow of government, hijacking, armed robbery, arson, bank robbery, blackmail, bombing matters, child exploitation, cyber-crimes, destruction of records in federal investigations & bankruptcy, drug smuggling, falsely claiming citizenship, failure to appear on felony offenses, false statements to obtain unemployment compensation, federal Civil Rights Violations (hate crimes), insider trading, mail fraud & mailing threatening communications, insurance fraud and child pornography.
Who Should Run Federal Searches?
ALL employers benefit from running a Federal Search because, without it, you can easily miss critical criminal records. Some organizations may be more vulnerable because of their industry and high level of liability, such as:
- Educational Institutions
- Healthcare (all healthcare including hospitals, long-term care, home health care, behavioral health, private practice, etc.)
- Financial Institutions
- All Licensed Positions
- Government Entities and Contractors
- Hospitality
NOTE: Employers in the Banking/Credit Union Industry must run a Federal Search because it’s the only place a money laundering charge can be found. (See Section 19 of FDIC Regulations & NCUA Regulations.)
Bottom Line: Don’t Overlook Federal Searches
Neglecting to include a National Federal Search in your background screening process can leave serious gaps—gaps that may be hiding critical federal offenses not visible in standard state-level or National Criminal Searches. These offenses often involve high-stakes crimes that carry significant legal and reputational risks.
Whether you’re hiring for a financial institution, a school, a hospital, or a government-contracted role, understanding and implementing National Federal Searches should be a non-negotiable part of your hiring process. It’s not just about compliance—it’s about protecting your organization, your employees, and the people you serve.
Comprehensive Background Checks with VICTIG
A background check isn’t truly comprehensive without the federal layer. Don’t let a hidden record become a costly mistake: use VICTIG to ensure your organization stays protected through the hiring process. Demo our software and experience the difference for yourself today!
