Employment identity theft is yet another type of identity theft. What makes it different is that unlike other forms of identity theft that are used for financial gain, medical identity theft is largely used to gain employment or to gain access to restricted employment-related information, resources and tools. In other words, it’s where the identity thief masquerades as you for employment-related purposes. Learn more about what it is, how to spot it and how to prevent it.
What is Employment Identity Theft?
Employment identity theft is the fraudulent use of someone else’s identity or personal information to obtain employment or gain unauthorized access to job-related resources. In this type of identity theft, a malicious individual assumes another person’s identity and applies for jobs, submits falsified credentials, or uses the victim’s information to gain employment benefits or access sensitive work-related information.
This form of identity theft can have severe consequences for the victim, including damage to their professional reputation, financial loss, and legal complications. Employment identity theft has become increasingly prevalent in the digital age, highlighting the importance of protecting personal and professional information.
Employment ID Theft vs Traditional ID Theft
Employment and traditional identity theft are two distinct types of fraudulent activities. Traditional identity theft involves the unauthorized use of personal information for financial gain, such as opening credit accounts or making fraudulent purchases. Meanwhile, employment identity theft specifically targets an individual’s professional identity, with the perpetrator using the victim’s information to secure employment or gain access to job-related resources.
While traditional identity theft focuses on financial consequences, employment identity theft can harm a person’s professional reputation and career prospects. Both types of theft require proactive measures to protect personal information and remain vigilant for signs of fraudulent activity. Regular monitoring of financial accounts and credit reports, as well as implementing strong security practices, are crucial in preventing and mitigating the impacts of both employment and traditional identity theft.
Learn more about traditional identity theft and how it works.
Employment ID Theft vs Unemployment ID Theft
Employment identity theft involves the fraudulent use of someone’s identity for job-related purposes, while unemployment identity theft revolves around fraudulently claiming unemployment benefits using another person’s identity. Employment identity theft focuses on exploiting employment opportunities and benefits, while unemployment identity theft targets financial benefits for the unemployed.
Both forms of identity theft can lead to significant financial loss, reputational damage, and legal ramifications. To mitigate these risks, individuals must proactively safeguard their personal information, monitor their employment and unemployment records, and report any suspicious activity promptly. Vigilance and preventive measures are essential in combating employment and unemployment identity theft. Get more insight into unemployment identity theft.
How Employment Identity Theft Works
Employment identity theft involves several steps and methods perpetrators employ to use someone else’s identity fraudulently for employment. Here is an overview of how employment identity theft typically works:
- In employment identity theft, the thief obtains the victim’s personal information, such as name, social security number, and employment history, through data breaches, phishing scams, or purchasing stolen data.
- The thief forges resumes and job applications using stolen personal information, making fraudulent modifications to the victim’s qualifications, work history, and credentials for a convincing appearance.
- The thief submits the falsified applications to potential employers, exploiting companies with lax background checks or verification processes, increasing the chances of the fraudulent application going unnoticed.
- If successful, the thief can secure employment using the victim’s identity, working under their name and using their social security number, potentially exploiting job-related benefits and resources.
- Once employed, the thief leverages the victim’s position to access extra benefits like healthcare, retirement plans, and employee discounts, benefiting financially at the victim’s expense.
- The victim may not realize the employment identity theft until discrepancies emerge, such as inconsistent employment records or receiving unearned tax forms. This can result in financial loss, harm to their professional reputation, and legal complications that require significant effort to resolve.
To protect against employment identity theft, safeguard your personal information, be cautious about sharing sensitive details, regularly monitor your employment records, and report any suspicious activity to employers and law enforcement. Maintaining awareness of potential phishing attempts and staying informed about identity theft prevention strategies is also essential.
Ways to Detect Employment ID Fraud
There are several ways individuals can detect employment identity fraud. Here are some key methods:
- Regularly Monitor Credit Reports: Keep a close eye on your credit reports for any unfamiliar employment-related activities, such as unauthorized inquiries or new accounts opened in your name.
- Review Employment History: Check your employment history periodically to ensure accuracy. Look for any unfamiliar employers or gaps in employment that you still need to authorize.
- Monitor tax forms: Be vigilant when reviewing your tax documents, such as W-2 forms. Verify that the income reported aligns with your actual earnings.
- Stay alert for notifications: Respond to any notifications from employers, government agencies, or financial institutions regarding employment-related activities or benefits you did not apply for or receive.
- Regularly check your online presence: Monitor your online presence, including social media and professional networking platforms. Look for any suspicious activity or accounts using your personal information.
- Monitor communication channels: Avoid unexpected phone calls, emails, or letters regarding job offers or employment-related matters. Before disclosing any personal information, make sure the source is trustworthy.
- Keep track of employment applications: Maintain a list of the businesses you’ve applied to and check on the status of those applications. It could be a warning sign if you get alerts regarding employment offers from organizations you still need to apply to.
- Report Suspicious Activity: Report any indications of employment identity fraud immediately to the proper authorities, including your local law enforcement and the Federal Trade Commission. Signs of employment identity fraud include unapproved job offers and irregularities in work records (FTC).
You may improve your chances of spotting work identity fraud early and taking the appropriate action to lessen its effects by being proactive and routinely examining your financial, employment, and personal data.
9 Ways to Protect Against Employment ID Fraud
As with all types of identity theft, there are a number of things you can do to help protect yourself from it. For example, you can exercise caution online and employ smart practices to safeguard your sensitive information. Be aware of common phishing scams. Monitor your employment records, secure your devices and only use devices from safe networks. And of course, report any suspicious activity that you see to help put a stop to it.
Here are nine things you can to do protect yourself from employment ID fraud:
1. Safeguard personal information
Please keep your personal information secure by storing it in a safe place and avoiding sharing sensitive details unnecessarily. Be cautious about providing personal information online or over the phone if you know the recipient’s legitimacy.
2. Use strong passwords
Create secure and distinctive passwords for your internet accounts, including email, job sites, and social media. Don’t use information that could be easily guessed, such as your birthday or generic passwords like “password.”
3. Be cautious of phishing attempts
Be wary of phishing scams. This is where attackers try to trick you into revealing personal information through fraudulent emails, websites, or phone calls. Be skeptical of requests for sensitive information and verify the source’s legitimacy before providing any details. Get more information about phishing and how to identify it.
4. Monitor employment records
Pay close attention to your work history, bank and credit card bills, and other financial records. Look for unauthorized transactions, unfamiliar employers, or discrepancies in your employment history.
5. Secure your devices
Ensure your devices, including computers and smartphones, have up-to-date antivirus software and security patches installed. Use secure Wi-Fi networks when accessing sensitive information, and be cautious of using public Wi-Fi for job-related activities.
6. Practice safe online behavior
Be mindful of the information you share online, especially on social media and professional networking platforms. Change your privacy settings to restrict who may see your information, and be wary of accepting connection requests from people you don’t know.
7. Verify job opportunities
When applying for jobs, research the companies and job listings to ensure they are legitimate. Be cautious of job offers that seem too good or require excessive personal information upfront.
8. Educate yourself
Stay informed about current identity theft trends and techniques. Familiarize yourself with common signs of fraud and learn how to recognize and report suspicious activities. For example, another way hackers can get ahold of your identity is through social media. Get more information about social media identity theft and how to protect against it.
9. Report suspicious activity
If you suspect employment identity fraud, report it immediately to local law enforcement, the Federal Trade Commission (FTC), and the relevant employers or agencies involved. Prompt reporting can help minimize the potential damage and aid in the investigation.
By implementing these protective measures and remaining vigilant, you can significantly reduce the risk of employment identity fraud and safeguard your professional identity and personal information.
Bottom Line
Employment identity theft is a serious issue with potential repercussions such as financial loss and reputational damage. Individuals can reduce the risk of becoming victims by taking proactive measures, such as safeguarding personal information, practicing safe online behavior, and monitoring records. Staying informed about the latest identity theft techniques and promptly reporting any suspicious activity is crucial to preventing and combating employment identity theft.
Frequently Asked Questions (FAQs)
How do I know if someone is using my SSN for employment?
If you suspect that someone might be using your Social Security number for employment, you can contact the Social Security Administration (SSA). From there, you can review your earnings to make sure that their records are correct and that only your work is included. You can also check out your Social Security Benefits Statement and confirm that it looks accurate based on your earnings history. Learn more about how to find out if someone is fraudulently using your identity with the latest information from the IRS.
How does employment identity theft different from unemployment identity theft?
With employment identity theft, someone is fraudulently using your identity for work-related purposes. Whereas, unemployment identity theft, typically entails someone using your identity to steal your unemployment benefits. Learn more about unemployment identity theft.
What is phishing?
Phishing is a type of scam where the scammer tricks a victim into handing over their personal information. They do this by posing as someone else in order to gain your trust. For example, a scammer might say they’re calling from your interest service provider or to collect debt on overdue medical expenses. Learn more about phishing, what it is and how to spot it.