- $65 million in total capital raised by Yardstik
- 149% year-over-year revenue growth for Yardstik
- 98% account retention rate over three years
Experts would likely conclude that continuous workforce monitoring is becoming essential as traditional background checks prove insufficient against evolving cybersecurity threats, particularly insider risks and identity fraud.
When HR Meets Infosec: The Rise of Continuous Workforce Security
MINNEAPOLIS, MN – September 29, 2026 – For decades, the corporate background check has been treated as a static administrative hurdle—a box checked by Human Resources on a new hire's first day and promptly forgotten. But as the enterprise perimeter dissolves into remote endpoints and sophisticated identity spoofing, the traditional onboarding process has become a gaping vulnerability.
Today, Yardstik, a continuous workforce monitoring platform, announced the appointment of Arctic Wolf President and CEO Nick Schneider to its board of directors. Coming just weeks after the Minneapolis-based firm closed a $30 million Series B funding round led by Harbert Growth Partners, the move signals a critical shift in corporate risk management: the convergence of HR identity verification and enterprise cybersecurity.
With $65 million in total capital raised, the platform is positioning itself not merely as an HR tech vendor, but as a core component of the modern security stack. The addition of Schneider—who scaled Arctic Wolf into one of the world's largest privately held cybersecurity companies—highlights a growing realization among enterprise leaders. Protecting a network from the outside in is no longer sufficient when bad actors are successfully applying for jobs to breach systems from the inside out.
The Workforce as an Attack Surface
The urgency behind continuous workforce monitoring is driven by a startling evolution in cybercrime. In June 2025, the U.S. Department of Justice broke up a sophisticated network of "laptop farms" that allowed North Korean operatives to pose as remote IT workers using stolen American identities. These operatives successfully navigated traditional hiring processes, landing jobs at more than 100 U.S. companies, including several Fortune 500 firms. A second unsealed case later that year tied a facilitator ring to fraudulent placements at 136 additional companies. Once inside, some of these fraudulent employees stole proprietary data and attempted to extort the very employers who had hired them.
These incidents expose a fundamental blind spot in enterprise defense. While Chief Information Security Officers (CISOs) deploy billions of dollars in software to monitor network behavior, the identity of the person sitting behind the keyboard is rarely scrutinized after their initial start date.
"Nick has spent his career proving that real security is never a one-time check, it's a continuous journey," said Andrew Johnson, CEO of Yardstik, in the company's press release. "You don't scan a network once and call it safe. Every attack surface gets watched continuously except one...the workforce. A candidate clears a background check at the point of hire and nobody bothers to check again. That's the gap we built Yardstik to close, and Nick understood the importance immediately."
Arctic Wolf and Yardstik effectively tackle two sides of the same coin. While the former's managed detection and response services monitor systems for anomalies once someone is already inside, the latter monitors the human being behind the login. It tracks whether the credentials remain valid, whether the individual has been flagged by regulatory bodies, and whether the person clocking in today is the same person who passed the background check six months ago.
"Companies have invested heavily in securing their networks, but people accessing those systems are still an underprotected part of the security equation," noted Nick Schneider, President and CEO of Arctic Wolf. "Yardstik is bringing a modern approach to workforce risk by giving businesses greater visibility into who is accessing their organization and how that risk can change over time. I'm excited to help the company establish lifecycle workforce protection as a core part of the enterprise security stack as it enters its next stage of growth."
The Death of the One-Time Background Check
The legacy background check industry was built for a different era—one defined by physical offices and verifiable, localized credentials. Today, the proliferation of synthetic identities and deepfake interviews is rendering the point-of-hire check obsolete. Industry analysts predict that by 2028, one in four candidate profiles will be fraudulent.
The financial toll of these blind spots is staggering. According to 2026 research from the Ponemon Institute, the average cost of insider risk now stands at $19.5 million a year per organization. Furthermore, Verizon's Data Breach Investigations Report consistently ties roughly three in ten corporate breaches directly to internal actors. A static background check, which only proves who someone appeared to be on the day they applied, offers zero defense against a legitimate employee who later goes rogue, loses a critical professional license, or becomes compromised.
Yardstik's platform is designed to replace this outdated model with continuous, Fair Credit Reporting Act (FCRA)-compliant monitoring. The newly injected $30 million in Series B capital will accelerate the development of automated defenses, including continuous motor vehicle report monitoring, Office of Inspector General (OIG) exclusion tracking, and automated alerts for expiring professional licenses. This is particularly critical in highly regulated sectors like healthcare, where employing an individual barred from federally funded programs can result in catastrophic fines and reputational damage.
By operating transparently and keeping candidates informed of their monitoring status, the platform attempts to balance rigorous corporate security with modern privacy standards. It represents a paradigm shift: identity verification is no longer a hurdle to clear, but a continuous state of compliance.
Scaling the Trust Infrastructure: The Channel Playbook
While the technological imperative for continuous vetting is clear, the appointment of Schneider points to a specific, aggressive go-to-market strategy. Prior to this funding round, the continuous monitoring startup had already achieved 149% year-over-year revenue growth and maintained a 98% account retention rate over three years, serving over 1,000 customers including H&R Block and Gopuff. However, scaling from a successful startup to an enterprise standard requires a different playbook.
Schneider brings a blueprint for hyper-growth built on channel partnerships. Under his leadership, Arctic Wolf achieved 100% year-over-year Annual Recurring Revenue (ARR) growth for seven consecutive years, largely by eschewing direct sales in favor of a robust, partner-led distribution model. By integrating its security operations into the existing ecosystems of managed service providers and IT channels, the cybersecurity firm made its technology ubiquitous and sticky.
Yardstik is actively pursuing a parallel path within the HR technology ecosystem. Built on an API-first infrastructure, the platform is designed to embed its screening, identity verification, and fraud prevention directly into the software that companies already use. The company has already established integrations with major Applicant Tracking Systems (ATS) and HR platforms like Greenhouse, Lever, Workable, and Paylocity.
The goal is to transition from a standalone vendor into embedded trust infrastructure. When identity verification and continuous monitoring are baked natively into an enterprise's ATS and HR platforms, the solution becomes incredibly difficult to rip and replace. Schneider's direct experience in turning a security platform into a channel-driven growth engine will be vital as the company scales past its Series B.
As remote work normalizes and digital identities become increasingly weaponized by nation-state actors and cybercriminal syndicates, the firewall between Human Resources and Information Security is collapsing. The traditional background check is rapidly becoming a relic of the past, replaced by continuous, automated vigilance. With fresh capital and a seasoned cybersecurity veteran guiding its board, the industry is betting that the future of enterprise defense starts long before an employee ever logs into the network.
Topics & Related
Leadership Change
Threat Landscape
Software & SaaS
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