Three signs you are the victim of employment identity theft

Jason Law
·2 min read

Like most of us, Emma Mitchell receives several spam calls and text messages a week. If she sees a message that says it’s from the IRS, she automatically assumes it’s a scam.

“That’s the biggest red flag. I would never assume the IRS was trying to contact me in that way,” Mitchell said.

Others aren’t as discerning. The Federal Trade Commission says there were 31,207 reported cases of employment identity theft in 2023, an increase of 18 percent from the year before. With tax season in full swing, cyber security experts are warning consumers to watch out for this growing trend in identity fraud.

“Employment identity theft went up dramatically during the pandemic and it hasn’t come back down,” said Ian Bednowitz, general manager for Identity and Privacy Theft at Lifelock. “This can be very financially damaging for someone.”

Employment identity theft happens when someone steals your Social Security number and other personal information to apply for a job in your name. According to Equifax, this usually happens when the “fraudulent applicant” has been disqualified for work in some way.

“Usually, the people doing this aren’t able to work on their own,” Bednowitz said. “Maybe they’re a felon, they can’t pass a background check, or maybe they’re illegally in this country, so they need an identity to get money.”

If you’re the victim of this type of fraud, you could owe taxes on the income you didn’t earn, unreported wages and other tax discrepancies attributed to your SSN could trigger an IRS audit, and your Social Security benefits may be adjusted to your detriment based on income falsely attributed to you, Equifax said.

Bednowitz said there are three telltale signs you’re a victim of employment identity theft:

  • YOU RECEIVE A W-2 OR 1099 FORM FROM AN EMPLOYER YOU DID NOT WORK FOR

  • YOU CAN’T FILE YOUR TAX RETURN BECAUSE YOUR SOCIAL SECURITY NUMBER HAS ALREADY BEEN USED TO FILE ONE

  • A CREDIT REPORT SHOWS UNFAMILIAR OR UNAUTHORIZED ACCOUNTS, LOANS OR BACKGROUND CHECKS RELATED TO EMPLOYMENT

Bednowitz said there are a few preventative steps consumers can take to protect themselves:

  • Avoid using public Wi-Fi, especially if you’re filing your taxes or handling other sensitive personal information

  • If you need to use public Wi-Fi, use a VPN to secure your network and information

  • Beware of phishing scams in emails or text messages

If you think you’re a victim of employment identity theft, Equifax says to report it to the authorities and then the IRS, Social Security Administration and FTC will work with you to correct the false information.

This is a developing story. Check back for updates as more information becomes available.

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