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how do online schools do a background check?

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my cousin enrolled in a school online and she has to take a proctored exam, this online school is 4 hrs ahead n time so they told her to nominate 3 proctors and they will do a background check on them and choose one..now its online they have no idea who the person is and when my cousin said how are you gonna do a background check if you don't even live in the same state? they said the same way when ur applying for a job?