Employment identity theft is when someone uses your name and personal information to get a job. Like other forms of fraud, occupational identity theft is illegal and can have devastating financial consequences for its victims.
Here’s what you need to know about occupational identity theft, and what to do if you find you’ve become a victim.
What is occupational identity theft?
Occupational identity theft occurs when someone steals personally identifiable information (PII) such as your name, date of birth, and social security number (SSN) to find a job using your identity. The perpetrator may provide your name and other personal information during the employment process and provide your SSN and other key pieces of PII to the employer for tax and payroll purposes when they are hired.
Perpetrators of identity theft at work may use their victim’s information to work and earn wages, file tax returns and even receive government benefits. The scam can go away for a long time if the victim doesn’t know to look for signs of identity theft.
There are many reasons why someone might commit occupational identity theft. For example, they may need to earn an income but are ineligible for work because of a criminal record, spotty employment history, or lack of required work authorization.
They may want access to an employer’s systems for criminal or corporate espionage reasons. Or, they may be planning to work illegally and file fake tax returns or claim unemployment benefits on your behalf.
How does occupational identity theft occur?
Someone can commit occupational identity theft only when they have access to your PII, including your name, date of birth, SSN, and other information typically required by employers during the hiring process. There are many ways that someone can gain access to your PII and use it for occupational identity theft:
- A data breach or hack leaks your personal information online and/or your PII is sold on the dark web.
- Your mail containing personal information is stolen from an unsecured location such as your front step, mailbox, or trash can.
- You are unknowingly providing your PII to someone running a phishing scam posing as a legitimate organization.
- Someone with access to your PII, such as a colleague or employee of a company you do business with, steals your PII to use for their own profit.
- A family member or close friend steals your PII to use for their own profit.
- Your identification, such as a driver’s license or passport, is stolen or a fake ID is created using your information.
Once someone has enough personally identifiable information to commit occupational identity theft, they can use your identity to apply for a job and provide your information to an employer when hired. They can also earn wages, file tax returns and commit other types of fraud.
How can identity theft at work affect you?
When you become a victim of identity theft, there are many possible consequences:
- tax liability: The IRS may think you owe taxes on unearned income. This could cause a discrepancy on your tax return, and it could even trigger an audit.
- Government benefits: Your Social Security benefits may be adjusted or denied based on income that was falsely reported to the Social Security Administration (SSA).
- Restoration costs: It can take a lot of time, effort and money to recover your identity.
- Damage to reputation: If the person using your identity behaves unprofessionally or unethically at work, your professional reputation may be damaged. You may even have trouble getting a job in the future when employers run background checks.
How to tell if someone is using your information for work
There are red flags to look out for for occupational identity theft:
Check with the IRS.
Pay attention to notices from the IRS regarding identity theft or wages you never earned. If you file a tax return but it’s rejected because someone already filed using your SSN, you’re likely a victim of tax identity theft. The easiest way to check your tax records online is to do this Create an online account with the IRS.
Check with the National Insurance Institute.
If your Social Security benefits are reduced or denied, or your Social Security statement shows higher than expected earnings, you may be a victim of employment identity theft. You can check your National Insurance statement online by Opening an account with SSA.
Watch the communication to employers.
If you receive W-2s or 1099s from employers you’ve never worked for, or receive other communications including job offers or employee benefit statements, someone may be working for that employer using your identity.
Pay attention to unemployment notices.
If you receive an unexpected notification that you have received unemployment benefits, someone may be using your identity to commit unemployment fraud.
Check your credit report.
If you check your credit report and find accounts you don’t recognize or credit applications you never submitted, your identity may have been stolen.
How to report identity theft at work
If you believe someone is using your identity for work, report it immediately to stop the scam.
- File a formal identity theft report with the Federal Trade Commission (FTC) at IdentityTheft.gov or by phone at 877-382-4357.
- Contact the Consumer Financial Protection Bureau (CFPB) to file complaints on fraud committed by businesses and organizations.
- contact Your state’s attorney general Seek legal advice and file a police report with local law enforcement.
- If someone filed a tax return using your SSN, you should contact the IRS and submit form 14039.
- You may need to contact the SSA to correct and update your earnings records.
- Report unemployment benefit fraud to the state unemployment office.
- Freeze your credit reports with all three major credit bureaus – Equifax®, Experian® and TransUnion®.
To help protect your information, consider identity theft protection. IdentityIQ’s identity theft protection services provide you with real-time alerts and $1 million in identity theft insurance, underwritten by AIG, if someone tries to use your personal information without your knowledge.
