What is employment identity theft and how does it happen?

The Federal Trade Commission (FTC) received over 80,000 reports of employment or tax-related identity theft in 2025, according to data from the Consumer Sentinel Network. This type of identity theft can go unnoticed for months, but left unaddressed, it can affect your finances and job prospects. And, as a victim of employment identity theft, you could also be exposed to other fraud risks.

Learn how it happens, key warning signs to look out for, what to do if you’re targeted, and the steps you can take to help prevent it.

How does employment identity theft occur?

Employment identity theft occurs when someone uses your personal information, such as your Social Security number, name, or address, to apply for a job. Like other forms of identity theft, it typically begins when a criminal gains access to your personal information through methods such as:

• A data breach: After a data breach, sensitive personal information such as your Social Security number, home address, or employment history may be exposed. Identity thieves can use this data to impersonate you in job applications.
• Insider access: Employees with authorized access to customers’ or clients’ sensitive personal information may abuse their privileges to commit fraud or sell information to identity thieves online.
• A phishing attack: Identity thieves can use phishing emails, phone calls, or other scamming tactics to try to trick you into providing your personal information. Scammers will often impersonate someone you trust, like your employer or the IRS, to get you to lower your guard.
• Document theft: Sensitive documents like your birth certificate, Social Security card, or driver’s license being stolen can give a bad actor all the information they need to impersonate you in job applications.

Identity thieves may seek employment using your identity because they cannot pass background checks under their own name due to a criminal record, immigration issues, or a poor employment history. And, if they succeed, the consequences can be serious.

Consequences of employment identity theft

If someone manages to get a job in your name using stolen sensitive information, you might face tax complications, incorrect earnings records, employment verification issues, or even legal and financial problems tied to work you never performed. Here’s a more detailed look at the potential consequences of falling victim:

• Incorrect tax records: Income reported fraudulently under your name can lead to unexpected tax bills, W-2s for jobs you never had, and issues submitting your own return when it comes to tax filing time.
• Administrative headaches: Untangling a complicated case of employment identity theft may involve lengthy disputes with the IRS, Social Security Administration (SSA), and confused employers.
• Financial consequences: In the period before your identity is restored, you might face financial downsides like a delayed tax refund or disruptions to any income-sensitive benefits you receive.
• Employment risks: Jobs you didn’t have being linked to your employment history can create discrepancies in background checks, potentially impacting your chance of securing future job opportunities.

Aside from these specific consequences of employment-related identity theft, having your identity stolen for use in a job application also means that you may be at risk of other types of fraud. For example, if an identity thief has your Social Security number, they might be able to commit tax identity theft — filing a return in your name to steal a refund you’re owed.

Employee identity theft warning signs 

The signs of employment identity theft can be subtle, but they often appear in tax records, employment histories, or background checks. Warning signs may include unfamiliar employers listed on tax documents, unexpected earnings reported under your Social Security number, errors on your credit report, or problems during employment verification.

Recognizing the following red flags early can help you identify employment identity theft before it leads to more serious financial or legal consequences:

• Unexpected tax forms: Receiving a W-2 or 1099 form from a company you have no relationship with may mean someone has used your SSN to land a job, and the employer has been reporting wages in your name.
• IRS notices: A letter from the IRS alerting you to unreported income or tax discrepancies — or a tax return filed in your name that prevents you from submitting your own — could mean someone has used your identity.
• Issues with background checks: If you have trouble passing employment background checks that you’d expect to pass, or the report flags suspicious employers you don’t recall working for, it could indicate identity theft.
  
• Incorrect credit report entries: While credit issues aren’t always related to employment identity theft, credit report discrepancies related to income or employers could be a warning sign.
• Social security statement errors: If your Social Security earnings statement doesn’t reflect your actual earnings, it could mean someone else is working a job they got using your SSN.

Tips to help prevent employment identity theft

Spotting the signs of employment identity theft early can help limit financial, legal, and reputational damage. But prevention is even better. Taking steps to protect your personal information, monitor your records, and recognize common scams can significantly reduce the risk of someone using your identity to gain employment.

Here’s a breakdown of some of the best ways to protect against employment identity theft:

• Keep your personal information private: Identity thieves can’t misuse personally identifiable information they can’t access. Store sensitive documents like your Social Security card securely, avoid oversharing personal details, and only provide information to individuals or organizations you can verify.
• Watch out for phishing scams: Scammers often use emails, texts, or phone calls that appear legitimate to steal personal information. Be skeptical of urgent requests, unexpected messages, or links asking for sensitive data, and verify requests through official channels.
• Keep sensitive data off shared devices: Information entered on shared or public devices may be accessible to others. Whenever possible, use your own trusted devices for handling sensitive information.
• Use a VPN on public networks: Poorly secured public networks can expose your data to interception. A VPN encrypts your internet traffic, helping protect sensitive information, even when using networks you don’t control.
• Minimize your online exposure: Personal details like your name, address, phone number, and date of birth may be available through data brokers and people-search websites. Using an automatic data broker removal service to limit that exposure can make it harder for identity thieves to gather the information needed to impersonate you.

What to do if you’re a victim of employment identity theft

If you think someone is using your SSN or other personal information to gain employment in your name, acting quickly can help limit the damage. Pursuing quick restoration of your identity also minimizes the risk that you suffer additional consequences, like financial or tax fraud.

Follow these steps to address and recover from identity theft:

1. Secure your credit: A criminal with access to your SSN could get credit in your name. Place a credit freeze or fraud alert on your credit with the three major bureaus (Equifax®, Experian®, and TransUnion®) to help protect against credit fraud, and make sure to review your credit reports regularly in the months following to spot any errors.
   
2. Lock your Social Security number: The Department of Homeland Security’s E-Verify service offers a Self Lock feature that allows you to “lock” your Social Security number. This helps prevent anyone else from using your SSN to confirm employment authorization, effectively stopping future employment identity theft attempts.
3. Get an Identity Protection PIN: Apply for an Identity Protection PIN (IP PIN) from the IRS to protect against tax fraud. This PIN is required to submit a tax return in your name, making it much more difficult for fraudsters to claim your tax refund before you can.
4. Report the identity theft: File an identity theft report with the FTC at IdentityTheft.gov to generate a recovery plan that provides a pathway to identity restoration. Additionally, if your tax return shows fraudulent income, notify the IRS and the SSA right away. 
5. Contact the unknown employer: If you receive a tax form or other correspondence from a company you haven’t worked with, contact them directly to report the employment fraud. Request that they correct their wage reporting and confirm in writing that you have never actually been an employee.
6. Get identity theft protection: An identity theft protection service can help you monitor for signs of subsequent fraud after your identity has been stolen, with alerts for things like errors on your credit report or applications in your name. But it can also give you tools that reduce your exposure to identity theft in the future, like an automatic data broker removal feature.

Protect your identity with LifeLock

Employment identity theft can affect far more than your job prospects. Once criminals have enough personal information to work in your name, they may also be able to open accounts, damage your credit, or commit other forms of fraud that take time and effort to untangle.

LifeLock helps you stay ahead of identity theft with identity alerts, dark web monitoring, and credit monitoring designed to spot warning signs early. And if your identity is compromised, you’ll have access to dedicated restoration specialists and reimbursement coverage to help you recover with greater confidence.

FAQs

How can I check if someone is using my identity for employment?

Review your Social Security earnings record through the SSA to make sure all reported income and employers are legitimate. You should also watch for unexpected tax forms, IRS notices about unreported income, or discrepancies uncovered during background checks or job applications.

How can employers protect employees from identity theft?

Employers can help protect employee information by implementing strong cybersecurity practices, including encryption, access controls, multi-factor authentication, and regular security audits. Employee training on phishing, social engineering, and other cyber threats is also an important part of reducing risk.

Will employment identity theft impact my credit?

Not necessarily. Employment identity theft most commonly affects tax records, earnings histories, and government benefits. However, if the thief also uses your personal information to open financial accounts, obtain loans, or commit other forms of identity fraud, your credit could be affected as well.