Report: Background checks keeping the wrong people out of jobs?

Background check service providers perform millions of investigations every year. But do they inadvertently disqualify innocent applicants?
That’s the conclusion of a recent BusinessWeek article, which lists some anecdotal evidence about the trouble with background checks.
One story involved a former pharmacy employee who was fired for stealing. An unemployment compensation board ruled that he was wrongly accused — but the company had already given his name to a database that tracks employee thefts.
Since then, the man has been unable to find a decent job, the story says.
Worth the risk?
Given the rising revenues for background check firms, it’s clear many companies think the risk of inaccuracy is worth it to screen out workers who might steal or harm the business in other ways. Also, statistically speaking, problems appear to be rare.
We’d like to hear from you. Do you rely on an outside firm to conduct background screens? Ever had any problems? Let us know in the comments section.