Introduction

While it may not be as well-known as traditional identity theft, employment identity theft can have serious consequences for both job seekers and businesses.

In this article, we will delve into the world of employment identity theft, explaining what it is, how it happens, and most importantly, how you can protect yourself against it.

What is Employment Identity Theft?

This occurs when someone fraudulently uses another person’s identity to gain employment. This can involve using the victim’s personal information, such as their name, Social Security number, and date of birth, to apply for jobs, receive paychecks, and even file taxes. The imposter may use false documents or manipulate information to deceive potential employers and government agencies.

It can go unnoticed for a significant amount of time, as victims may not be aware that someone else is using their identity to work. It’s essential to understand that the consequences of this type of identity theft can be far-reaching, impacting not only the victim’s financial stability but also their reputation.

Employment Identity Theft Rising

According to the Federal Trade Commission (FTC) Consumer Sentinel Network data, employment or tax-related fraud is rising dramatically since 2019. In fact, in 2019 there were just over 15,000 cases reported and by mid-2023, that number rose to over 25,000 cases reported and continues to uptrend. 

How Does Employment Identity Theft Happen?

There are several ways in which employment identity theft can occur:

1. Stolen Personal Information: Criminals may gain access to a person’s personal information through data breaches, phishing scams, or other cybercrimes. With this information in hand, they can apply for jobs using the victim’s identity.

2. Fraudulent Documents: Perpetrators may create fake IDs or alter documents, such as driver’s licenses and Social Security cards, to pass background checks and verification processes during the hiring process.

3. Exploiting Vulnerable Individuals: Some criminals specifically target vulnerable individuals, such as those experiencing homelessness, to use their identities for employment purposes.
4. Inside Jobs: In some cases, dishonest employees within organizations may engage may commit fraud or help others gain employment under false pretenses.

To learn more about how criminals steal personal information, visit Federal Trade Commission – to Report Identity Theft and watch the video below for Five Ways to Help Protect Your Identity.

Protecting Yourself Against Employment Identity Theft

Now that you know what employment identity theft is and how it happens, it’s crucial to take steps to protect yourself:

1. Monitor Your Credit: Regularly check your credit reports for suspicious activity. You can obtain a free annual credit report from each of the three major credit bureaus.

2. Secure Your Personal Information: Safeguard your personal documents, such as your Social Security card and driver’s license. Store them in a secure place and avoid sharing sensitive information online.

3. Use Strong Passwords: Create complex and unique passwords for online accounts. Consider using a password manager to keep track of them.

4. Educate Yourself: Stay informed about common identity theft tactics, such as phishing scams and data breaches, and learn how to recognize and avoid them.

5. Report Suspicious Activity: If you suspect you are a victim of fraud, report it to law enforcement and contact the Social Security Administration and the IRS.

For additional information on protecting yourself from employment identity theft, visit IdentityTheft.gov to report identity theft and get a free recovery plan.

One way I protect myself against employment identity theft is using Aura to detect threats against my identity. Aura also monitors my social security number, online accounts and other critical personal information.

Conclusion

Employment identity theft is a growing concern in today’s digital world. Criminals are becoming increasingly sophisticated in their methods, making it crucial for job seekers and businesses to be vigilant. Understand what employment identity theft is, how it occurs, and taking proactive steps to protect yourself. By doing this, you can minimize the risk of falling victim to this insidious crime. Remember, knowledge and vigilance are your best allies in the fight against identity theft.

Questions and Answers (Q&A)

Q1: Can employment identity theft affect my credit score?

A1: Yes, employment identity theft can indirectly impact your credit score. If the imposter does not pay taxes on the income earned under your name – this could result in tax liens.

Q2: What should I do if I suspect I am a victim of employment identity theft?

A2: If you suspect employment identity theft, report it to law enforcement, the Social Security Administration, and the IRS immediately. They can guide you on the necessary steps to resolve the issue.

Q3: Can businesses also be victims of employment identity theft?

A3: Yes, businesses can also fall victim to employment identity theft. This happens when criminals use fraudulent identities to gain employment within the organization. This can potentially causing financial and reputational damage.

Q4: How can businesses protect themselves from employment identity theft?

A4: Businesses can protect themselves by implementing robust background checks and verifying employee information. Also by staying informed about identity theft trends in the hiring process.

Q5: Are there any legal consequences for individuals engaging in employment identity theft?

A5: Yes, individuals caught engaging in employment identity theft can face criminal charges. This is includes fraud and identity theft, which can result in fines and imprisonment.

About Mike Greco MBA

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