Why BeenVerified, TruthFinder, and Instant Checkmate Are Risky Data Providers | Data Allegiance Report
- Clarence Philip Balingit
- May 6
- 2 min read
BeenVerified, TruthFinder, and Instant Checkmate are popular people search and background check platforms operated by The Control Group Media (now PeopleConnect). Despite their large user base, these companies have faced lawsuits, FTC scrutiny, and widespread criticism for misleading practices and misuse of sensitive personal information.
Data Allegiance examines why these services are considered risky data providers and how businesses and individuals may be exposed by using them.
1. FTC Charges of Deceptive Practices and FCRA Violations
In September 2023, the Federal Trade Commission (FTC) announced that TruthFinder and Instant Checkmate misled users about the accuracy of their background reports.The companies:
Falsely claimed that records were up-to-date and accurate.
Failed to comply with the Fair Credit Reporting Act (FCRA) while marketing reports for tenant screening and employment.
Displayed expunged or outdated criminal records, sometimes mislabeling individuals as sex offenders.
These violations led to a $5.8 million settlement and a mandate to stop promoting background checks without proper legal safeguards.
2. Class Action Lawsuits Over Misuse of Personal Data
Multiple class action lawsuits have been filed against these services for:
Publishing private or expunged records.
Selling personal data without consent.
Using people’s names and likenesses in advertising without permission.
In one major case, plaintiffs alleged that TruthFinder and Instant Checkmate used public records and mugshots to generate fear-based ads that encouraged people to buy full reports.
These lawsuits underscore the legal and reputational risks of using data from these sources, especially in B2B or marketing contexts.
3. Lack of Consent and Inability to Fully Opt Out
Although these services offer opt-out mechanisms, the burden is entirely on the consumer to request removal, and the data often reappears elsewhere. Critics argue that these platforms:
Scrape and aggregate personal data without consent.
Create profiles from public records, social media, and deep web sources.
Make opt-out confusing and unreliable, sometimes requiring ID uploads.
This creates long-term risks for individuals whose information may be exposed, re-used, or sold without proper control.
4. Use of Fear-Based Marketing to Sell Reports
All three companies have been criticized for using fear-mongering tactics to encourage users to purchase reports. Common ad language includes:
“What you find will shock you.”
“You won’t believe who’s searching for you.”
“Click to view criminal records now.”
Such messaging contributes to consumer anxiety, misinformation, and potential misuse of personal data for stalking or harassment.
Conclusion: Why BeenVerified, TruthFinder, and Instant Checkmate Are High-Risk Data Companies | Data Allegiance
BeenVerified, TruthFinder, and Instant Checkmate may offer consumer-facing tools, but behind the scenes, they operate in a legal and ethical gray area. From FTC enforcement and misuse of criminal records to unauthorized data sales, these companies pose a high privacy and compliance risk, especially if their data is used in sensitive business workflows.
Data Allegiance advises all organizations and marketers to vet data vendors thoroughly and avoid sourcing from high-risk people search platforms.
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