What is Employment Identity Theft?
Employment identity theft occurs when someone uses another person's identity to gain employment. This can include using a stolen social security number, name, or other personal information to apply for a job or to work illegally in the United States.
The victim of employment identity theft may not even be aware that their identity has been stolen until they receive a notice from the IRS or their employer. This can lead to serious consequences, including damage to their credit score and tax liabilities.
How Often Does Employment Identity Theft Occur?
Employment identity theft is a growing problem in the United States. According to the Federal Trade Commission, employment-related identity theft accounted for 34% of all identity theft complaints in 2020.
The frequency of employment identity theft can vary depending on the industry and location. For example, industries that require minimal background checks or verification of employee identities may be more vulnerable to employment identity theft.
Consequences of Employment Identity Theft
The consequences of employment identity theft can be severe for both the victim and the employer. The victim may experience damage to their credit score, tax liabilities, and even criminal charges if the thief commits a crime while using their identity.
Employers may also face consequences, including fines and penalties for hiring unauthorized workers. In addition, employers may be liable for any taxes or benefits paid to the identity thief.
Prevention and Detection of Employment Identity Theft
Preventing employment identity theft requires a combination of verification and authentication of employee identities. Employers can use E-Verify, a web-based system that checks the employment eligibility of new hires, to help prevent employment identity theft.
Employers can also detect employment identity theft by monitoring employee activity, such as unusual changes in work schedule or behavior, and by conducting regular audits of employee records.
Protecting Yourself from Employment Identity Theft
Individuals can protect themselves from employment identity theft by monitoring their credit reports and tax returns for any suspicious activity. They can also use identity theft protection services to alert them to any potential identity theft.
In addition, individuals can take steps to secure their personal information, such as using strong passwords and being cautious when sharing personal information online or in person.
Frequently Asked Questions
What are the most common types of employment identity theft?
The most common types of employment identity theft include using a stolen social security number, name, or other personal information to apply for a job or to work illegally.
How can I protect myself from employment identity theft?
You can protect yourself by monitoring your credit reports and tax returns, using identity theft protection services, and securing your personal information.
What are the consequences of employment identity theft for employers?
Employers may face fines and penalties for hiring unauthorized workers, and may be liable for any taxes or benefits paid to the identity thief.
How can employers prevent employment identity theft?
Employers can use E-Verify to check the employment eligibility of new hires, and can detect employment identity theft by monitoring employee activity and conducting regular audits.
What is E-Verify and how does it work?
E-Verify is a web-based system that checks the employment eligibility of new hires. It compares the information provided by the employee with records in the Department of Homeland Security and Social Security Administration databases.
Can I recover from employment identity theft?
Yes, it is possible to recover from employment identity theft. You can work with the Federal Trade Commission and your employer to correct any errors and restore your identity.