They’re not the same thing.
A background check is a formal process used to verify a candidate’s identity, criminal record, education, past employment, financial status, and more – depending on the job role and industry.
A reference check, on the other hand, is more like calling your ex-manager to ask, “How was it like working with this person?”
So why do companies run background checks?
Because hiring isn’t just about skills. It’s also about trust, safety, and risk management. Like…
✅ To verify claims made in the resume (e.g. education, job titles, certifications)
✅ To screen for criminal records (especially for roles involving money and data)
✅ To check for financial red flags like bankruptcy or loan defaults (common in banking or finance industries)
✅ To comply with regulations (some industries, especially regulated sectors like banking, insurance or GLC, are legally required to do this under Bank Negara or MCMC guidelines)
Background checks are hard facts – like criminal records, education history, financial standing.
Reference checks are soft truths – like attitude, reliability, teamwork.
Both are useful. Just different tools.
If you’re job hunting, whatever it is, be honest. Most companies aren’t looking for a perfect record – just consistency and integrity.
And if you’re hiring, better take an extra step now than regret later.
Gitu.
xoxoxo, AuntyHR
P.S. If you’re looking to run background checks on your hires, may I suggest VeriSafe, powered by Halocheck. Quote AuntyHR for a special discount. More information: https://www.verityintel.com/verisafe/
