Employment identity theft is a type of identity theft that occurs when someone steals your Social Security number (SSN) and other personally identifiable information to apply for a job in your name. It usually happens when the fraudulent applicant has been disqualified for work in some way, such as difficulty passing a background check, incarceration, or a poor employment history. The thief may fabricate some personal information to make the application appear legitimate. Once the thief successfully gains employment under someone else’s identity, they may receive paychecks or benefits meant for that person, which harms their financial and employment records and results in legal complications and tax issues.
Victims of employment identity theft can end up with a blemished work history, have difficulty filing taxes, and in extreme cases, even find themselves facing a tax audit. It can be tough to discover if you are a victim of employment identity theft because there isn’t an immediate impact on the victim, so it can be hard for them to figure out what happened and who did it.
Employment identity theft is illegal, and once you report it, government agencies such as the IRS, the Social Security Administration (SSA), and the Federal Trade Commission (FTC) will work with you to correct any false information. Victims can spend hours recovering from employment identity theft and working to restore their identity. To prevent employment identity theft, you can take a few steps such as protecting your Social Security number, shredding documents that contain personal information, and monitoring your credit report regularly.
