MSNBC did an investigative report on the "Data Information" industry relevant to background checks. Additionally, I've seen where candidates manipulate their personal information to get past this.
Human Resouce Professionals should use numerous different sources, including reference checks to spot discrepancies. Trust me, it is possible. When these cases are uncovered, it is amazing how many clues existed pointing to deception.
After all, there are a lot of illegal immigrants who gain employment out there. Who is to say that criminals, intending to plant themselves in an organization, or merely gain employment aren't out there also.
http://www.msnbc.msn.com/id/6448213/did/7467732/?GT1=6428
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