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Employment identity theft occurs when criminals illegally obtain your Social Security number or other personally identifying information to get a job or to get paid. In 2025, the Federal Trade Commission's Consumer Sentinel Network received more than 2.5 million reports of identity theft, nearly 84,000 of which were related to employment or taxes. Employment identity theft can cause you problems with the IRS or wreak havoc with your Social Security benefits. It may also raise issues in a preemployment background check.
Here's more about how employment identity theft happens, tips on how to avoid (or at least discover) it and what to do if you think you're affected.
How Does Employment Identity Theft Occur?
Employment identity theft happens when someone illegally obtains your personally identifiable information and uses it to get a job or collect wages. A scammer may also use your identity to craft fake credentials or experience.
How Do Identity Thieves Get Your Information?
Employment identity theft typically begins with stolen data. Fraudsters may scam you into providing personal information, or they may obtain it via a data breach or document theft. Common means of stealing data include:
- Phishing: Scammers use phishing texts, emails or phone calls to trick you into giving them access to your personally identifying information.
- Fake job postings: You may be lured into submitting a job application for a fraudulent job listing, or may provide information after receiving a job offer that doesn't exist.
- Data breaches: Employee or job applicant data may be leaked in a data breach.
- Document theft: Fraudsters may get their hands on employee documents or paper job applications containing personal data.
- Employee theft: Unscrupulous employees may steal data on the job and either use it or sell it.
- Public Wi-Fi hacking: Scammers intercept your unencrypted data while you're working on an unsecured public internet connection.
Learn more: How to Protect Your Personal Information Online
How Do Scammers Commit Employment Identity Theft?
Scammers use your personally identifying information to get a job and get paid. Say someone wants to work as a caregiver, but they have a disqualifying felony conviction on their record. They might use your identity (and clean criminal record) to qualify for the job.
When they receive pay, their tax withholding might be attributed to your Social Security number and their wages reported as yours to the IRS. When you file taxes, your reported income won't include the fraudulent amount, raising questions with the IRS. The IRS may notify you that you owe additional taxes or let you know they suspect identity theft. Either way, you'll need to resolve inconsistencies with the IRS and take steps to protect your identity.
Learn more: The Latest Scams You Need to Be Aware Of
How Does Employment Identity Theft Affect You?
Employment identity theft can create problems for you with the IRS, Social Security and more. Concerns include (but aren't limited to):
- Tax complications and fake returns: The IRS may receive W-2 or 1099 forms reporting income you didn't earn, which can raise issues with your tax return. Additionally, a scammer who uses your identity for employment may file a fake tax return in your name to claim your refund.
- Social Security errors: Fake earnings may affect your record with the Social Security Administration (SSA).
- Credit report and background check issues: A scammer's fake employment history may show up during a background check for employment or on your credit report. If you need to pass a preemployment background check, you may want to explain that you've been the victim of identity theft.
- Criminal record: If a fraudster using your identity commits a crime (on or off the job), it could show up on your criminal record.
- Additional identity theft: Someone who's stolen your identity for employment may also abuse your identity by opening loans or credit card accounts.
Learn more: Ways to Protect Yourself From Identity Theft
Signs of Employment Identity Theft
Employment identity theft can be difficult to detect. However, if any of the following happens to you, consider it a warning sign.
You get an IRS notice. These IRS notices are strong signs someone may be using your identity for employment:
- A CP01E notice lets you know the IRS has placed an identity theft indicator on your tax account due to suspicion that someone has used your Social Security number to get employment.
- A CP2000 series notice reports that information from a third party, such as an employer or financial institution, doesn't match what you reported on your tax return.
- A CP 2057 notice shows questionable income from wages you didn't earn.
The IRS may also notify you about a duplicate tax return or suspicious tax document.
- You receive an unexpected W-2 or 1099 form. The form may report income you didn't earn from an employer you don't know.
- Your Social Security earnings are off. Your Social Security benefits statement shows earnings you don't recognize.
- Your credit report includes employer errors. Your credit report lists an employer (or employers) you haven't worked for.
- Your credit report shows unfamiliar activity. Your credit report shows soft inquiries that may have come from prospective employers running background checks for someone using your identity to apply for work.
Learn more: How to Check for Identity Theft
How to Avoid Employment Identity Theft
Even if you can't eliminate the risks entirely, you can take steps to keep your information safe and up your defenses against this type of identity theft. Here are a few tips.
- Steer clear of phishing scams. Be alert to texts or emails asking for your personally identifying information. When in doubt, don't answer phone calls, emails, text messages or social media messages from people you don't know. Be vigilant at work as well: Fraudsters use similar tactics to gain access to networks and data.
- Use a password manager. Get an app that generates a unique password for every account and remembers it for future reference. Use multifactor authentication or biometrics when available.
- Don't save personal information on a work computer. Saving information on a work network or device increases your exposure to hackers and inside thieves.
- Use a VPN when using public Wi-Fi. A virtual private network (VPN) encrypts your information and obscures your IP address so it's more difficult to trace.
- Shred files, discarded mail and other sensitive documents. Fraudsters can steal physical documents to obtain your personally identifying information. Be mindful of how you're disposing of papers at home and at work.
- Consider identity theft monitoring. Identity monitoring services scan for personal data that might be used to commit employment identity theft and other types of identity fraud.
Tip: You may want to set up my Social Security and individual IRS online accounts so you can check Social Security benefits statements and IRS tax transcripts for irregularities—and to beat fraudsters to the punch.
How Employers Can Protect Against Identity Theft
Employers can do their part to protect employees and job applicants from employment identity theft and reduce the chances that they'll hire unqualified job candidates based on fake identities or fraudulent credentials. Here are a few core measures to consider.
- Conduct identity and background checks before hiring. Verifying a job candidate's identity, experience and credentials can help your organization avoid hiring applicants with false identities. E-Verify provides free online verification of employment eligibility by comparing information from an employee's Form I-9 to records from the U.S. Department of Homeland Security and the Social Security Administration.
- Strengthen data security. A strong data security policy clearly defines how data should be stored, managed and accessed. Use encryption and firewalls to secure data; make sure software is up to date. Data security can also mean enforcing a policy that requires all documents to be shredded before being disposed of and regulating the use of personal devices at work (and the use of business devices for non-work purposes).
- Educate employees on identity theft and security issues. Teach employees about the dangers of phishing attacks, especially in a work setting. Also help them understand the signs of employment identity theft and what to do if they suspect a problem.
What to Do if You're the Victim of Employment Identity Theft
Take immediate steps to report suspected fraud, secure your credit, notify the IRS and SSA, and reach out to employers who may be involved. Here are some basic steps to follow.
1. Report It
File a police report with your local police department and/or file a complaint with the Federal Trade Commission at IdentityTheft.gov. Keep a copy of your report as evidence of your identity theft.
2. Secure Your Credit
You have the right to place a fraud alert on your credit reports with the major credit reporting agencies if you suspect you've been a victim of employment identity theft. A fraud alert asks creditors to verify your identity before approving credit in your name, to make it more difficult for an identity thief to open accounts using your information. Requesting a fraud alert at any of three credit bureaus—Experian, TransUnion or Equifax—automatically adds a fraud alert to all of them.
Learn more: What's the Difference Between a Fraud Alert and a Credit Freeze?
3. Notify the IRS
If the IRS sends you a notice that signals possible employment identity theft, follow instructions for responding in the letter. If you've received a W-2 or 1099 form for earnings that aren't yours, contact the employer who sent the form and ask them to correct the error. You may also want to get an identity protection PIN to make it easier for the IRS to verify your identity online and more difficult for a scammer to file a fake tax return in your name.
4. Contact Social Security
Check your Social Security benefits statement or open an online Social Security account to check for signs of unauthorized employment. Contact the SSA to report a problem or request a review of your earnings.
5. Reach Out to Employers
Contact unknown employers that have sent you tax forms or other employment-related communications. Let them know your identity is being used fraudulently. If they've reported income to the IRS, ask them to issue a corrected W-2 or 1099.
6. Check Your Credit Reports
You may want to check your credit reports for signs of both employment and non-employment identity theft. Fake employer listings on your credit report don't affect your credit score, but could cause confusion if a prospective employer checks your credit and sees inconsistencies in your work history. Also look for new credit or loan accounts you didn't open yourself; they're signs someone is using your identity to commit fraud.
Frequently Asked Questions
How Do I Know if Someone Is Using My Identity for Employment?
Look for signs of employment identity theft (detailed above), including IRS notices, unexpected W-2 or 1099 forms, suspicious income on your Social Security benefits statement, jobs you don't recognize on your credit report or soft inquiries to your credit file that may be prospective employers trying to check your credit. If you're a victim of employment identity theft, report it to the FTC or local police, notify the IRS and Social Security, and take steps to protect your credit.
Can Employment Identity Theft Hurt My Credit?
Employment identity theft may not damage your credit directly, but it can cause problems with your credit file. For example, if fraudulent employment information appears on your credit report as a result of identity theft, you could have problems during a preemployment background check.
If you suspect any form of identity theft, check your credit reports at all three credit bureaus. You can download your credit reports for free at AnnualCreditReport.com. If you find any inaccuracies, you have the right to dispute them. You may also want to consider placing a fraud alert or credit freeze on your files.
Can You Lock Your Social Security Number to Prevent Employment Identity Theft?
Yes, you can lock your Social Security number (SSN) using the Department of Homeland Security's E-Verify Self Lock system. When your number is locked in the E-Verify system, an employer using E-Verify to check your SSN will receive a tentative nonconfirmation or mismatch. Follow these steps to lock your SSN:
- Create an account. Visit myE-Verify to set up an account.
- Lock your SSN. Log in and answer challenge questions to verify your identity, then lock your SSN against unauthorized employment checks.
- Unlock it when needed. Unlock your SSN when you want legitimate employers to be able to verify your employment eligibility. You can relock it after your employer has E-Verified your SSN. Your SSN remains locked until you unlock it and as long as your account is valid.
The Bottom Line
No one wants to find out they're the victim of identity theft. But knowing that employment identity theft exists may help you spot the signs so you can start working to undo the damage.
Staying on top of possible identity theft—employment-related and otherwise—is a smart idea anytime. Look for changes to your credit file that can signal fraud by checking your credit report and FICO® Score☉ Θ for free. Consider free credit monitoring to receive alerts whenever changes are made to your credit file, so you'll be aware of activity as soon as it happens.