PRESS RELEASE — FOR IMMEDIATE DISTRIBUTION
Automation Is Failing Background Screening: Legal Exposure Surges as Industry Turns Back to Human Investigation

Brisbane — Faust Legal Support Services (FLSS)

The global backgroundscreening industry is entering a period of structural instability as companies increasingly rely on automated screening apps to process highvolume employment checks. What was marketed as “innovation” has rapidly become one of the most expensive operational failures in the sector’s history.

Regulators, courts, and corporate compliance teams are now confronting the consequences: inaccurate results, wrongful exclusions, missed red flags, and escalating litigation costs.

Industry analysts warn that the sector’s dependence on automation is not just unsustainable — it is dangerous.

Automation Is Breaking the Industry — The Numbers Are Undeniable

Recent audits, regulatory filings, and classaction settlements reveal a pattern of systemic failure:

32% of automated criminalrecord hits are inaccurate, often misidentifying individuals.

27% of automated employment verifications contain errors, driven by unverified thirdparty databases.

Automated international checks fail at rates exceeding 40%, especially in nondigitised jurisdictions.

FCRArelated class actions have surged 300% since automation became the industry’s default workflow.

More than USD $1.2 billion in legal payouts over the past decade are directly linked to automated or semiautomated background checks.

Legal experts say the trend is accelerating, not stabilising.

Automation is not reducing risk. It is manufacturing it.

Why Automated Screening Apps Are Structurally Unsafe

Automated systems cannot perform the core functions that define legitimate background screening:

verifying source authenticity

interpreting jurisdictional differences

detecting forged or altered documents

reconciling conflicting data

understanding cultural naming conventions

assessing behavioural or executivelevel risk

conducting ontheground verification

Automation can collect data. It cannot investigate.

And in executive hiring, that distinction is catastrophic.

ExecutiveLevel Screening: The Industry’s Breaking Point

Automated systems were never designed for:

Csuite appointments

politically exposed persons

crossborder executives

highvalue financial roles

nationalsecurityadjacent positions

Yet vendors continue to apply automated workflows to these categories, resulting in:

false clearances

missed red flags

regulatory breaches

catastrophic hiring decisions

The industry is now facing a credibility crisis of its own making.

The Counterweight: Faust Legal Support Services (FLSS)

While the industry has drifted into automation dependency, FLSS has remained anchored in investigative discipline — the only approach proven to withstand legal scrutiny.

FLSS is now in its 26th year of conducting executivelevel, crossborder background investigations across more than 180 countries, with over 25,000 highprofile cases completed.

FLSS operates on a model the industry abandoned too quickly:

bootsontheground verification

jurisdictionspecific intelligence

humanled analysis

evidencegrade reporting

proprietary investigative systems

FLSS also maintains one of the only privately held investigative databases spanning more than 40 countries, used as a support tool — never a replacement for human verification.

The Investigator Behind the Firm: Christian P.W. Faust

At the centre of FLSS is a figure whose credentials the automatedscreening industry cannot replicate.

45 years in the investigative industry

Most likely Australia’s longestserving private investigator

Supreme Courtcited work

Crossborder casework spanning homicide, aerospace disputes, armsrelated intelligence, corporate fraud, and missing persons

Formal qualifications in investigations, criminology, intelligence analysis, counterterrorism protection, and paralegal studies

Developer of AIRP, AIRPXL, VBA, VBACIM, and the FLSS Vendor Risk Scan

A global academic and operational profile in the top 0.001% of investigators worldwide

In an industry dominated by automated workflows and untrained operators, Faust represents a level of capability that is statistically rare — and operationally irreplaceable.

Why Corporations Are turning to FLSS

As litigation accelerates and regulatory scrutiny intensifies, corporations are reassessing their reliance on automated vendors.

The trend is clear:

Automation is fast.

FLSS is accurate.

And in executive hiring, accuracy is the only metric that matters.