7 Overarching Background Screening Industry Trends of 2024

Note: This is part two of a three-part blog series recapping the background screening industry trends of 2024 and helping CRAs prepare for what’s next in 2025. Check out part 1 here.

2025 is in full swing... can you believe it? And, as we reflect on last year's transformative trends, it’s clear that 2024 was more than a series of challenges—it was an opportunity for Consumer Reporting Agencies (CRAs) to innovate, adapt, and evolve.

In our recent webinar, “Prepare to Thrive in 2025: Top Background Screening Trends of 2024 and What's Next”, industry experts Ryan Crawford, Jeff Anop, and Adam Abbruzzese shared their perspectives on the year’s most significant shifts. This blog, the second in our three-part series, highlights the overarching trends shaping the background screening industry and explores how they lay the foundation for success in 2025.

 This post is a summary of their insights- you can watch the on-demand webinar for free here!

1. Clean Slate Legislation

The Clean Slate Movement remains an important trend to watch as the list of states enacting automated expungement laws continues to grow. Michigan’s rocky implementation became a cautionary tale, highlighting the potential for disruptions when the rollout process doesn’t go so smoothly. However, other states have executed smoother rollouts, proving that Clean Slate isn’t so scary when the states carefully plan for implementation.

More states are to come in 2025 (subject to change): Minnesota, Oklahoma, and Virginia. As more states prepare for Clean Slate laws in 2025, it’s important to stay informed and adaptable. We recommend that you have someone dedicated to tracking these laws and their impact so you stay aware. InformData's Clean Slate Hub serves as a helpful resource.

2. PII Redaction

PII redaction remains a critical and ongoing challenge for the industry. Changes in data access—such as platforms removing full dates of birth—create barriers to efficient and accurate background checks. California has been the biggest state impacted so far. The state's large population and volume of background checks make it particularly challenging. Lessons learned in Los Angeles specifically have shaped industry best practices for managing these disruptions.

Similar to Clean Slate, we recommend you have someone dedicated to tracking PII redaction so you can stay ahead of disruptions and maintain operational integrity.

3. Adoption of AI for Process Optimization

Artificial Intelligence (AI) is no longer just a buzzword; it’s a powerful enabler for optimizing operations and reducing manual touchpoints. In 2024, the focus shifted from hype to tangible applications of AI in background screening.

We’ve observed AI-driven tools helping organizations manage costs and automate workflows to create more efficient processes. Small and mid-sized businesses are leveraging AI to compete with larger enterprises, using tailored solutions to differentiate themselves in industries like healthcare, logistics, and retail.

As we look ahead, businesses that embrace AI thoughtfully will be better positioned to scale and thrive in a competitive market.

4. CRAs’ Desire to Get Closer to the Source

Accessing data directly at its source has become a priority for many organizations. However, it’s not just about proximity—it’s about transforming raw data into actionable insights that deliver tangible value.

Businesses that successfully integrate Direct-Source Data into their operations will differentiate themselves, providing unique solutions that stand out in a crowded marketplace where it’s becoming more difficult to compete. At InformData, we’re committed to helping you achieve this by eliminating unnecessary layers and ensuring seamless access to critical information.

5. Platform Competition and Flexibility

What once was rare–switching third-party platforms–has become a growing trend in 2024. Rising costs, limited product choices, and increasing flexibility from providers are driving this shift. We are seeing that CRAs are increasingly willing to migrate to platforms that better align with their needs, even if it requires temporary disruption. This unexpected shift reflects the importance of adaptability and the willingness to invest in tools that deliver long-term value in a competitive market.

6. Cybersecurity and Data Protection

Cybersecurity took center stage in 2024 – and our industry is a target. With breaches and cyberattacks on the rise, it’s clear that robust cybersecurity practices are critical. Specifically, cyberattacks targeting court systems are a growing threat to the industry, as these attacks disrupt access to vital public records, leaving background checks in limbo and potentially exposing sensitive information.

These threats aren’t going away. Make sure your organization has rigorous data security measures in place. And equally important, ensure that your data providers adhere to strict cybersecurity standards (e.g., SOC 2 Type II certification) to protect sensitive information and maintain trust in a fast-evolving digital landscape.

7. Economic Uncertainty and Growth Signals

The economic landscape of 2024 was marked by uncertainty, but early indicators suggest a potential upswing in 2025. Signs of increased recruiting activity may signal a rebound in hiring, offering hope for industry growth. While we can’t predict the future, by staying agile and responsive, organizations like yours can turn economic shifts into opportunities for innovation and expansion.

Ready to Adapt and Innovate?

The overarching trends of 2024 highlight an industry in transition, balancing challenges with opportunities. From navigating clean slate legislation to harnessing the power of AI and ensuring data security, the ability to adapt and innovate will define success in the year ahead.

InformData is here to guide you through these shifts, offering Direct-Source Data, innovative solutions, and the expertise to help you thrive. Let’s make 2025 a year of growth and transformation together! Reach out to our team of experts to explore how we can help.

Stay tuned for the final part of this series, where we’ll share our outlook for 2025 and actionable strategies for success. Subscribe here so you don’t miss it.

Click here for our overview of 2024's product trends.