Omar Bennett
Employment-related identity theft occurs when someone uses your personal information, such as your name, date of birth, address, and Social Security number (SSN), to pose as you when applying for jobs. This type of identity theft can be devastating, leading to hassles with fraudulent employment history, income tax issues, and even an IRS audit. It is essential to act quickly if you suspect that your former employer is using your name, as it can take years to undo the damage caused by employment identity theft.
| Characteristics | Values |
|---|---|
| Type of identity theft | Employment identity theft |
| Occurrence | When someone uses your name and other personal information to apply for a job |
| Impact | Tax returns, Social Security benefits, medical benefits, lost tax returns, tax audits, incorrect information on government records, credit reports, bank accounts, loans |
| Signs | Receiving Form W-2 or Form 1099 from an unknown employer, receiving a notification from the Social Security Administration (SSA) stating that your benefits have been adjusted or denied |
| Action | Contact the Social Security Administration (SSA), check bank records and credit reports, file Form 14039 (Identity Theft Affidavit), keep detailed records of communications, use identity theft protection services |
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What You'll Learn
- Identity theft consequences: tax audits, lost refunds, and permanent record errors
- Identity protection: use Identity Protection PIN and fraud alerts
- Identity theft red flags: W-2 or 1099 forms from unknown employers
- Identity theft prevention: never give out personal details and store documents safely
- Identity theft action: file a police report and contact the Federal Trade Commission
Identity theft consequences: tax audits, lost refunds, and permanent record errors
Employment-related identity theft occurs when a bad actor uses your personal information, such as your name, date of birth, address, and SSN, to impersonate you on a job application. This can have devastating consequences for your employment history and reputation. While it may be challenging to detect employment identity theft, some signs indicate that your identity has been stolen for employment purposes. For example, receiving tax forms, such as Form W-2 or Form 1099, from an employer or government agency that you did not work for suggests that your identity has been used fraudulently. Additionally, discrepancies in your Social Security Statement, such as adjustments or denials of benefits, can be a red flag.
If you suspect employment identity theft, it is crucial to act promptly and keep detailed records of all communications. Contact your employer to verify the information and, if necessary, report the suspected identity theft to the Social Security Administration (SSA) and the Internal Revenue Service (IRS). The IRS provides resources to help individuals protect their information and prevent tax-related identity theft. This includes obtaining an Identity Protection PIN (IP PIN) to safeguard your tax account and following the instructions provided by the IRS in notices or letters.
Consequences of employment-related identity theft can extend beyond your employment history and reputation. Identity thieves may use your personal information to drain your bank accounts, take out loans in your name, or commit tax fraud. Tax-related identity theft, a severe form of identity theft, involves the misuse of your information to claim tax refunds, file false tax returns, or gain other financial benefits. This can result in significant financial losses for the victims and has led to numerous convictions across the United States.
To protect yourself from the consequences of employment-related identity theft, consider the following measures:
- Lock your SSN through the Department of Homeland Security to prevent its unauthorized use for employment purposes.
- Enroll in an identity theft protection service that monitors your personal information and alerts you to potential threats, such as LifeLock Standard.
- Keep your personal information secure by using strong passwords, avoiding phishing emails, and protecting your computer and phone.
- Regularly review your earnings on your Social Security Benefits Statement and monitor your income history for any discrepancies.
- Stay vigilant and proactive in safeguarding your personal information, especially in the workplace, to minimize the risk of identity theft.
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Identity protection: use Identity Protection PIN and fraud alerts
Employment identity theft occurs when someone uses your personal information, such as your name, date of birth, address, and SSN, to impersonate you and apply for jobs. This can have devastating effects on your employment history and reputation.
To protect yourself from employment identity theft, you can use an Identity Protection PIN (IP PIN). An IP PIN is a six-digit number that prevents someone else from filing a tax return using your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). It is a simple and effective way to protect your tax account from tax-related identity theft. The IP PIN is only known to you and the IRS, and it acts as an authentication measure to validate your identity when filing tax returns.
You can obtain an IP PIN by using the Get An IP PIN tool online, which is the fastest way. Alternatively, if you are unable to establish an online account, you can use Form 15227, Application for an Identity Protection Personal Identification Number. This method takes longer, and you must meet certain requirements, such as having a valid SSN or ITIN and an adjusted gross income below a certain threshold.
In addition to obtaining an IP PIN, there are other steps you can take to protect yourself from employment identity theft. For example, you can lock your SSN through the Department of Homeland Security to prevent unauthorized use. Keeping detailed records of your communications, including dates, names, and reference numbers, can also help resolve any identity theft issues quickly and effectively.
It is important to be vigilant and proactive in protecting your personal information, especially in the workplace. By utilizing tools like the IP PIN and taking precautionary measures, you can significantly reduce the risk of employment identity theft and its potential negative consequences.
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Identity theft red flags: W-2 or 1099 forms from unknown employers
Employment identity theft occurs when a bad actor uses your personal information, such as your name, date of birth, address, or Social Security number (SSN), to impersonate you and gain employment. It can be challenging to detect employment identity theft, as the effects may not be immediately obvious. However, receiving W-2 or 1099 forms from unknown employers is a significant red flag indicating that you may be a victim of employment identity theft. Here are some crucial steps to take and considerations to keep in mind if you find yourself in this situation:
Verify the Information
Upon receiving a W-2 or 1099 form from an unfamiliar employer, carefully examine the details. Verify that the employer's name, address, and ZIP code are correct. Check if the employee's name or SSN on the form matches your information. Ensure that the reported amounts are accurate and align with your expectations. If any discrepancies are found, promptly contact the employer for clarification and verification.
Contact the Social Security Administration (SSA)
If you receive a W-2 or 1099 form from an unknown employer, do not include the income on your tax return or amend a previously filed return. Instead, immediately contact the Social Security Administration (SSA) to report suspected identity theft. They can guide you through the necessary steps to protect your identity and resolve the issue.
Complete Form 14039, Identity Theft Affidavit
Depending on the specifics of your case, you may need to complete and submit Form 14039, Identity Theft Affidavit, to the Internal Revenue Service (IRS). This form allows you to report tax-related identity theft and can be submitted online or by printing and mailing the PDF version.
Protect Your Personal Information
It is essential to safeguard your personal information, especially your SSN, to prevent identity theft. Be cautious about sharing your SSN and only do so when absolutely necessary. Additionally, consider using services that offer identity theft protection, such as LifeLock, which can monitor your Social Security and other identity theft alerts, limit the public exposure of your personal information, and detect leaks on the dark web.
Keep Detailed Records
Maintain detailed records of all your communications and interactions related to this matter. Note down dates, names, reference numbers, and any other relevant information. Taking quick action and keeping organised records will help resolve the situation more efficiently and effectively.
Prevent Further Damage
Act promptly to prevent further damage by contacting any service or business where your SSN is being used fraudulently. This includes employers you don't work for or benefits you didn't request. If you suspect that your identity has been used to claim unemployment benefits, contact your state's unemployment office immediately.
In summary, receiving W-2 or 1099 forms from unknown employers is a critical indicator of potential employment identity theft. By following the steps outlined above, you can help protect yourself, minimise the damage, and resolve the issue effectively. Remember that identity theft can have serious financial and credit implications, so it's important to remain vigilant and proactive in safeguarding your personal information.
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Identity theft prevention: never give out personal details and store documents safely
Using someone's name without their consent for employment purposes may constitute identity theft. Identity theft is a serious issue, and it is important to take steps to prevent it. Here are some ways to protect yourself:
Never Give Out Personal Details
Never disclose your personal information unless you initiated the contact. Be cautious when businesses or agencies request your personal information. Ask how it will be used, shared, and protected. If you are not satisfied with the answers, consider taking your business elsewhere.
Secure Your Online Accounts
Use strong, unique passwords for your online accounts. Protect your personal and financial information, including Social Security numbers, account usernames, passwords, and data for dependents and deceased persons. Avoid carrying your Social Security card in your wallet. If your health plan or another card uses your Social Security number, request a different number.
Monitor Your Accounts and Reports
Regularly check your accounts and reports for taxes, Social Security, credit, and finances. Look for any unauthorized charges or withdrawals and report them immediately. Contact the Social Security Administration if you notice any discrepancies in your income history or benefits.
Store Documents Safely
Keep your essential documents, such as birth certificates, passports, and wills, in a secure location. Consider purchasing a fire-resistant and water-resistant home safe, located out of plain sight and bolted to the floor or wall. For digital documents, use encryption and store them on external hard drives or secure cloud storage services. If you must have digital copies of sensitive information, opt for thumb drives or external hard drives instead of cloud storage.
Additionally, develop a comprehensive home filing system to manage your documents effectively. Use alphabetical or chronological sorting for easy retrieval and designate a specific area for incoming paperwork. Remember to shred any documents you dispose of, such as bank statements, medical records, and utility bills, to prevent identity theft.
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Identity theft action: file a police report and contact the Federal Trade Commission
If you suspect that your former employer is using your name without your consent, you may be a victim of identity theft. Employment identity theft occurs when someone uses your personal information, such as your name, date of birth, address, or Social Security number, to impersonate you on a job application or obtain work authorization. It can have devastating consequences on your employment history and reputation.
File a Police Report:
- Gather evidence: Collect any documents, communications, or notices that indicate your identity has been compromised. Keep detailed records, including dates, names, and reference numbers, as these will be useful when filing a report.
- Contact your local law enforcement agency: Explain the situation and provide them with the evidence you have gathered. They will guide you through the process of filing a police report, which may vary depending on your location.
- Follow up: After filing the report, make sure to get a copy for your records. Ask the police about the next steps in the investigation and stay in touch with the assigned investigator to provide additional information or answer any questions.
Contact the Federal Trade Commission (FTC):
- Visit IdentityTheft.gov: This is the federal government's official website for reporting and recovering from identity theft. It provides step-by-step advice, easy-to-print checklists, sample letters, and other helpful resources.
- Create an Identity Theft Report: Follow the steps on IdentityTheft.gov to create a personalized recovery plan. This may include placing fraud alerts or credit freezes, closing affected accounts, and obtaining an Identity Theft Report.
- Report the fraud: If your identity theft case involves fraud, scams, or bad business practices, you can also report it to the FTC through ReportFraud.ftc.gov. The FTC provides support in multiple languages and offers resources on how to spot, avoid, and report fraud.
Remember, it is important to act quickly and keep detailed records throughout the process. By taking these steps, you can help protect yourself from further harm and resolve the situation effectively.
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Frequently asked questions
Employment identity theft is when someone uses your personal information, such as your name, date of birth, address, and Social Security Number (SSN) to pose as you when applying for jobs.
Never give out your personal details, such as your Social Security number, birth date, bank PINs, or bank account information. It is also a good idea to safely store any documents that may include this information. If you need to dispose of documents containing sensitive information, burn or shred them.
Employment identity theft can be difficult to spot, but there are some red flags. For example, if you receive a W-2 or 1099 form from an employer you don't work for, or a statement from the Social Security Administration (SSA) informing you that your benefits have been adjusted or denied due to wages you did not earn.
Check your bank records and credit report for unfamiliar or incorrect information. Notify credit reporting agencies (CRAs) such as Experian, Equifax, and TransUnion that you suspect your identity has been stolen. File a police report with your local law enforcement agency and contact the Federal Trade Commission (FTC) to file an identity theft report.
You may have the right to sue the employer under a negligence theory, such as negligent hiring. However, if the impostor employer has proper identifying documents, you may not be successful.
