Employment-Related Identity Theft

Identity theft is one of the most common forms of fraud in the United States, affecting millions yearly. While identity theft can manifest in numerous ways, one specific and rising concern is employment-related identity theft. This type of fraud occurs when someone unlawfully uses another person’s personal information to gain employment, often without the victim’s knowledge.

Employment-related identity theft can have severe financial, personal, and professional repercussions, impacting a person’s credit, taxes, and overall sense of security. A Florida identity theft attorney from Sharmin & Sharmin can help you understand the nature of this form of identity theft, how it occurs, and what steps to take if you suspect you are a victim, which can help you protect yourself.

What is Employment-Related Identity Theft?

Employment-related identity theft occurs when someone uses another person’s Social Security number (SSN) or other information to secure employment, file fraudulent tax returns, or claim benefits under the victim’s name. This fraud often goes undetected until victims face tax issues, credit problems, or Internal Revenue Service (IRS) notices about unearned income.

According to the U.S. Treasury Inspector General for Tax Administration, the IRS reports many cases where unauthorized individuals use others’ SSNs to gain work. Unfortunately, Florida ranks sixth in the country for identity theft. Employment-related identity theft can lead to immediate and long-term issues for victims, including liability for unpaid taxes on unearned income or dealing with incorrect income reports on tax documents.

How Employment-Related Identity Theft Occurs

Employment-related identity theft can occur in various ways, often without the victim’s awareness. Common tactics used by identity thieves include:

• Data breaches: With data breaches becoming more frequent, millions of Social Security numbers and other sensitive information can end up in the wrong hands. Large-scale breaches at major corporations, healthcare facilities, and government agencies have exposed the personal information of countless Americans, making them vulnerable to employment-related identity theft.
• Phishing scams: Phishing scams trick individuals into giving up their personal information. Fraudsters often pose as legitimate entities, such as banks or government agencies, to request sensitive data. Unknowingly, people may share their Social Security numbers, date of birth, or financial account details, which scammers can use to commit employment-related identity theft.
• Mail theft: Some thieves resort to stealing personal information directly from mailboxes. Important documents such as tax forms, Social Security cards, or credit card statements contain valuable information that fraudsters can use to create fake identities or assume someone’s identity.
• Public record searches and social media mining: Employment-related identity theft can also occur when fraudsters access publicly available records or glean personal information from social media profiles.

Once the fraudster has obtained the victim’s Social Security number and other information, they may use this data to apply for jobs. In some cases, individuals without authorization to work in the United States may also use stolen Social Security numbers to secure employment.

Signs You May be a Victim of Employment-Related Identity Theft

Identifying employment-related identity theft can be challenging, as the signs are not always immediately obvious. However, some common red flags include:

• You receive a W-2 form from an employer you have not worked for.
• You notice a discrepancy in your wages or employment history on your Social Security statement.
• Your credit report shows unfamiliar employers or debts you have not incurred.
• You are denied unemployment benefits or have difficulty accessing Social Security benefits.
• You receive tax notices or collection letters referencing wages you never earned.

Steps to Take if You Suspect Employment-Related Identity Theft

If you believe you are a victim of employment-related identity theft, there are steps you should take to protect your identity and address the fraudulent activity.

Notify the IRS

One of the first steps is to contact the IRS. According to the IRS’s identity theft guide, you should file an Identity Theft Affidavit (Form 14039) if you suspect your SSN has been used fraudulently to obtain employment or other benefits. This form will help the IRS identify fraudulent activity tied to your SSN, helping them investigate the matter. Once filed, the IRS may issue a Taxpayer Protection PIN (IP PIN) for added security when filing future tax returns.

Check Your Social Security Earnings Record

It is also essential to review your Social Security Statement for any inaccuracies. This report provides an overview of your earnings history, and any discrepancies may indicate unauthorized use of your SSN. You can access this record by creating an account on the Social Security Administration (SSA) website or contacting the SSA directly.

Review Your Credit Reports

If you suspect identity theft, closely monitoring your credit reports is essential. Under federal law, you are entitled to a free copy of your credit report annually from each of the three major credit bureaus. Reviewing your report can help you identify any new or suspicious accounts that someone may have opened in your name. Consider placing a fraud alert on your credit report or even a credit freeze to restrict access to your credit file.

Report the Identity Theft to the FTC

The Federal Trade Commission (FTC) provides a valuable resource for identity theft victims. You can file a report on IdentityTheft.gov, where you will receive a personalized recovery plan, including templates for disputing fraudulent activity and guidance on notifying other institutions.

Report Employment-Related Identity Theft to the Police

Filing a police report with your local law enforcement agency can serve as additional documentation to support your case. A police report can also help you when working with other entities to rectify fraudulent accounts or resolve tax issues.

Take Preventative Steps for the Future

Identity theft victims should take steps to minimize their future risk. This includes using strong, unique passwords for online accounts, avoiding sharing sensitive information over phone or email, and securing all physical and digital personal documents.

Legal Ramifications of Employment-Related Identity Theft

Employment-related identity theft affects both victims and employers. Employers may unknowingly hire individuals using stolen SSNs, despite being legally required to verify identities. If identity theft is discovered, companies may need to coordinate with the IRS and law enforcement for further investigation.

Employers negligent in verifying eligibility could face fines and penalties. Victims may also consult a skilled Florida identity theft lawyer to understand their rights, especially if an employer failed to take reasonable preventative measures.

Protect Against Employment-Related Identity Theft

Employment-related identity theft can have serious, long-lasting effects, including unexpected tax bills, benefit delays, and credit issues that may take years to resolve. Recognizing the signs, acting quickly, and following up with authorities are crucial steps for protection.

Whether you are an individual aiming to protect your personal data or a business reducing liability, staying informed and vigilant is essential to prevent the damaging effects of identity theft. If you have questions or believe you have been affected, schedule a free consultation with Sharmin & Sharmin to see how we can help.