Imagine waking up one day to find out that someone else has been using your identity to land a job. Employment identity theft isn't just a nightmare—it's a growing reality for many. This form of theft can wreak havoc on your finances, reputation, and peace of mind. By understanding the signs of this sneaky crime, you can take steps to protect yourself and reclaim control over your life.
Understanding Employment Identity Theft
Employment identity theft happens when someone uses your personal details—most commonly your Social Security Number (SSN)—to get a job or earn income. Unlike financial identity theft, which usually shows up as strange charges on your bank statement, employment identity theft often flies under the radar until serious problems arise.
How It Differs from Other Identity Theft
Financial Identity Theft: Thieves go after your money, credit cards, or bank accounts.
Employment Identity Theft: Someone uses your identity strictly to gain employment, not necessarily to steal your funds directly.
The goal for thieves here isn’t to drain your savings but to pass background checks, qualify for jobs, or dodge employment eligibility requirements. This type of fraud can leave a messy paper trail on your tax records, Social Security benefits, and employment history.
How Thieves Get Your Info
Fraudsters can get personal details in several ways:
Phishing emails: Fake job offers or HR requests trick you into sharing sensitive data.
Data breaches: Hackers target companies and leak employee records.
Dumpster diving: Discarded paperwork with SSNs or pay stubs can be goldmines.
Social engineering: Con artists pose as recruiters or HR staff to pry information over the phone.
Once they have your SSN or other vital details, it’s easy for them to pass as you—at least on paper.
Who Is at Risk?
No one is immune. Children, retirees, and working adults have all found themselves in the crosshairs. Sometimes, victims don’t even discover the problem until years later, often during tax season or when applying for jobs. Staying alert is your best defense, because the signs can be subtle and the impact severe.
Red Flag 1: Unexpected IRS Notices
Receiving an IRS notice you weren’t expecting is never fun, but it can also be an early warning sign that someone else is using your Social Security number to get a job. This red flag deserves your full attention—ignoring it could land you in a mess of tax headaches and potential fraud investigations.
Why IRS Notices Matter
The IRS doesn’t send random letters. If you get a notice about wages you didn’t earn, or taxes owed from a job you never worked, it’s a big hint that your SSN might have been used by someone else for employment. Common IRS letters tied to employment identity theft include:
CP01E Notices: Indicate a mismatch between the income reported by your employer and what you filed.
Notice of Unreported Income: Lists wages from unfamiliar companies.
Mismatch Letters: The IRS tells you about Social Security or tax discrepancies.
These notices are often the first clue that your personal data is floating around—maybe sold, maybe stolen.
Why You Can’t Ignore These Letters
Brushing off these notices is risky. Here’s why:
Tax Liability: You could be on the hook for taxes on income you never earned.
Delayed Refunds: The IRS might freeze your refund while sorting out the confusion.
Fraud Investigations: Unresolved discrepancies can trigger audits or deeper investigations.
Anecdote: One reader shared that after tossing aside a strange IRS letter, she ended up spending months sorting out fraudulent wages that nearly cost her thousands in taxes she didn’t owe.
What To Do If You Get One
Act fast. Here’s a clear action plan:
1. Read the Notice Carefully: Figure out what the IRS is saying is wrong.
2. Check Your Records: Look for any unfamiliar employers or wages.
3. Contact the IRS Directly: Call the number on your notice, or reach the IRS Identity Protection Specialized Unit at 1-800-908-4490.
4. File an Identity Theft Affidavit (Form 14039): This helps flag your account for extra scrutiny and protection.
5. Monitor Your Social Security Statement: Make sure no one is racking up work history under your name.
If you use privacy tools like Cloaked, you can reduce the risk of your SSN falling into the wrong hands in the first place. Cloaked helps you generate and manage secure digital identities, so your real SSN is less likely to end up exposed in data breaches or phishing scams.
Stay Alert
If you receive any IRS correspondence that doesn’t make sense, take it seriously and act quickly. The faster you respond, the easier it is to stop fraud before it spirals.
Red Flag 2: Denied Social Security Benefits
Being denied Social Security benefits out of the blue can be more than just a paperwork mix-up. It’s often a glaring sign that your Social Security Number (SSN) is being misused—possibly by someone else for employment or to collect benefits they aren’t entitled to. This kind of identity theft isn’t just a hassle. It can haunt your finances and your future.
How Denied Benefits Signal Identity Theft
If your claim for Social Security benefits is rejected with reasons that make no sense—like “benefits already claimed” or “earnings don’t match records”—you need to consider identity theft as a likely cause. Here’s why:
Employment Identity Theft: Someone could be using your SSN to get a job. Their reported wages get linked to your record, messing up your earnings history and, in some cases, bumping into benefit limits or tax issues.
False Claims: Fraudsters might use your SSN to apply for benefits. If the Social Security Administration (SSA) thinks you’re already drawing benefits, your legitimate claim gets denied.
Long-Term Impact on Your Benefits and Financial Security
Identity theft involving your Social Security can have lasting consequences:
Messed Up Earnings Record: If someone else’s wages are credited to your SSN, your own benefit calculations can get skewed. Down the road, you might get less than you’re actually owed.
Delayed or Lost Benefits: Sorting out fraudulent claims can take months or longer, delaying your access to money you’ve rightfully earned.
Tax Complications: The IRS may think you made more than you actually did, leading to surprise tax bills or audits.
Credit Damage: If identity thieves rack up debt or commit fraud in your name, your credit score can take a hit.
What To Do If You Suspect Misuse of Your SSN
If you get denied for benefits and suspect identity theft, act fast:
Verify Your Social Security Statement
Check Your Earnings: Log in to your “my Social Security” account on the SSA website. Review your earnings record for unfamiliar employers or wages.
Look for Errors: Pay attention to any reported income or employment that doesn’t belong to you.
Report Suspicious Activity
Contact the SSA: Call the Social Security Administration’s fraud hotline at 1-800-269-0271 or report online.
File an Identity Theft Report: Use the FTC’s IdentityTheft.gov portal to document the incident and get a recovery plan.
Alert Credit Bureaus: Place a fraud alert or credit freeze on your files to prevent new accounts from being opened in your name.
Protect Your Personal Information
Stay Vigilant: Don’t share your SSN unless absolutely necessary. Be wary of unsolicited calls or emails asking for it.
Use Privacy Tools: Services like Cloaked can help by providing disposable phone numbers and emails, adding another layer of protection when dealing with employers or government agencies. This means your real information stays safe, even if a data breach occurs.
Identity theft tied to Social Security is serious. Recognizing the warning signs early and knowing exactly what steps to take can help protect your financial future—and your peace of mind.
Red Flag 3: Mystery Background Checks
A surprise background check landing in your inbox is more than an oddity—it can be a glaring warning sign of employment identity theft. If you’re seeing background check inquiries from employers you never contacted, someone might be using your identity to try and land a job. This isn’t just a paperwork headache. It can drag your name through mud if the thief commits workplace fraud or other offenses under your identity.
How Thieves Use Your Identity for Jobs
Employment identity thieves target positions that require background checks—think roles in finance, healthcare, or government. Here’s how it typically unfolds:
Fake Job Applications: Using your Social Security number and personal details, a thief applies for jobs.
Triggering Checks: Employers run background checks to screen new hires. These checks leave a record.
Consequences: If the thief gets the job, you may later find taxes owed for income you never earned, or worse, face legal trouble for acts you didn’t commit.
Spotting and Preventing Unauthorized Background Checks
It pays to be vigilant. Here’s how you can monitor and guard against mystery background checks:
Regularly Review Your Credit Reports: Look for employer inquiries you don’t recognize. These can show up as “soft pulls.”
Monitor Notification Letters: Some companies send notices if a background check was run. Don’t ignore them.
Watch Your Mail and Email: Unexpected pre-employment correspondence is a red flag.
How Cloaked Can Help
If you’re worried about unauthorized background checks, using a privacy tool like Cloaked can add a layer of protection. Cloaked lets you mask sensitive information like your Social Security number and email address when applying for jobs or signing up for services. This makes it harder for thieves to get their hands on the real data needed to commit employment identity theft.
Key Takeaways
Unrecognized background checks are not harmless—they’re a big deal.
Quickly investigate any unexpected check.
Use privacy tools to keep your real information safe.
Red Flag 4: Receiving Unfamiliar Job Offers
Why Random Job Offers Should Make You Wary
Getting a congratulatory email for a job you never applied to might sound like a lucky break, but it's usually a flashing warning sign. Employment identity theft happens when someone uses your personal details—like your name, Social Security number, or address—to apply for jobs or even land positions without your knowledge. If recruiters or companies start contacting you out of the blue for roles you never sought, it’s time to pay attention.
What’s at Stake?
When someone uses your identity for job applications, the risks run deep:
Tax Complications: Fraudsters might get hired using your details. At tax time, you could end up with extra income reported under your name, leading to IRS headaches or even audits.
Criminal Records: If the imposter commits workplace misconduct, your reputation and background check could take a hit.
Employment History Issues: False employment records can show up on your background checks, affecting future job prospects.
Social Security Problems: Unauthorized earnings could mess with your Social Security records and benefits.
Spotting the Signs
Here’s what to watch out for:
Job offer letters or onboarding emails from companies you’ve never contacted.
Mail regarding job interviews or employment paperwork for unknown positions.
IRS letters about unreported income from an unfamiliar employer.
Notifications from unemployment agencies regarding benefits you never claimed.
What Should You Do If This Happens?
If you find yourself on the receiving end of mysterious job offers or employment paperwork, act fast:
Don’t Ignore It
Shred any paperwork and don’t respond, but keep a copy for your records.
Contact the Employer
Let the company know someone used your details fraudulently. Request them to remove your information from their system.
Check Your Credit Reports
Look for new accounts or activity you don’t recognize. You can get a free report each year from the major bureaus.
Report to Authorities
File a report with the Federal Trade Commission (FTC) at IdentityTheft.gov. Also, alert the IRS if you receive tax forms for jobs you never worked.
Secure Your Information
Change passwords on critical accounts and consider a credit freeze.
Watch Your Mail and Email
Stay alert for future suspicious activity. Consider using privacy tools to mask your details in job applications.
How Cloaked Can Help
If you’re tired of worrying about your personal info floating around, tools like Cloaked can help. Cloaked lets you create secure, private emails, phone numbers, and even addresses for job applications. That way, even if someone tries to use your details, they won’t get far. It’s a smart way to keep your true information safe while you search for work—or when you’re just living your life.
Receiving job offers out of the blue isn’t just an oddity—it’s a red flag. Stay alert, take action, and protect your identity at every turn.
Steps to Reclaim Your Identity
Employment identity theft can flip your world upside down in a heartbeat. If you think your personal information has been used for someone else’s employment, don’t panic—act quickly and methodically. Here’s what you need to do:
1. Freeze Your Credit
Contact major credit bureaus (Equifax, Experian, TransUnion) right away. A credit freeze blocks anyone from opening new accounts in your name.
This action won’t affect your current credit or cards, but it does stop new lines of credit—often the first move fraudsters make.
2. File Fraud Reports
Report identity theft to the Federal Trade Commission (FTC) at IdentityTheft.gov. They’ll guide you through a personalized recovery plan and provide important documentation.
File a police report with your local law enforcement. This creates an official record, which can help clear your name with employers and government agencies.
3. Notify Affected Parties
Contact your employer and any company where your Social Security Number (SSN) may have been used fraudulently. Ask for documentation related to the fraudulent activity.
Reach out to the IRS if you suspect someone is working under your SSN. You might also want to fill out Form 14039 (Identity Theft Affidavit).
4. Secure Your Personal Information
Change passwords on all accounts, especially email, banking, and payroll portals. Use long, unique passwords or passphrases.
Set up two-factor authentication where possible.
Consider using a privacy tool like Cloaked, which lets you create aliases for your real information—making it much harder for thieves to misuse your details even if they get access.
5. Monitor Your Credit and Employment Records
Check your credit reports for unfamiliar activity. You’re entitled to a free report from each bureau once a year via AnnualCreditReport.com.
Review your Social Security statement for unknown employers or income.
Keep an eye out for mail or bills from companies you don’t recognize.
6. Lean on Recovery Services
Identity recovery services like Cloaked can help you manage and resolve employment identity theft. They offer guidance, monitoring, and sometimes even legal support as you clean up your records.
Key Takeaways
Act fast. The sooner you take these steps, the better your chances of stopping the damage.
Document everything. Keep copies of every report, letter, and communication.
Stay vigilant. Identity theft isn’t a one-and-done problem. Ongoing monitoring and using privacy tools like Cloaked can help keep you safe moving forward.
Employment identity theft is personal. But by following these clear steps, you can take back control and make it much harder for anyone to steal your good name.
Preventive Measures for the Future
Keeping your employment identity secure is a long game. Thieves adapt, so you have to stay one step ahead. Here’s how you can shield yourself from the headache—and financial fallout—of employment identity theft.
Regular Credit Monitoring
Credit monitoring isn’t just for after you’ve been hit. It’s your early-warning system. Here’s why it matters:
Spot suspicious activity fast: Unfamiliar employers or addresses on your credit report can be a dead giveaway someone’s using your identity.
Catch unauthorized background checks: If someone is trying to get a job using your details, background checks in your name will show up.
You can use free annual credit reports from the major bureaus, but for tighter control, consider enrolling in a reputable monitoring service.
Secure Handling of Personal Information
Think of your Social Security number and other sensitive details like your house keys—don’t hand them out unless you trust the person on the other side.
Practical steps:
Shred physical documents: Anything with personal data—job applications, pay stubs, tax forms—should be shredded, not just tossed.
Be skeptical of unsolicited job offers: Scammers love to pose as recruiters. Never give out personal info without vetting the employer.
Use strong, unique passwords: Especially for job sites and email accounts linked to your employment history.
Be Wary With Background Checks
Employers will run background checks, but you have a say in how your data is handled.
Know your rights: You must give written consent before a background check. Ask what info will be checked and how it’s stored.
Request a copy: If you suspect foul play, you can request to see the report yourself.
Tools for Extra Protection
If you want to go beyond the basics, some digital privacy tools make it harder for scammers to get their hands on your data. Cloaked, for instance, lets you create encrypted email addresses and phone numbers for job applications. This keeps your real details hidden, even if the company’s database gets compromised.
Use masked emails and phone numbers: With Cloaked, you can generate unique contact info for every job application. If one gets leaked, your real identity stays safe.
Monitor for data breaches: Some tools will alert you if your information surfaces on the dark web or is part of a breach.
Stay Informed and Proactive
Employment identity theft isn’t going away. Staying alert—by checking your credit, being stingy with your personal details, and using privacy tools like Cloaked—makes you a tough target. A little vigilance now can save a lot of grief later.
Cloaked FAQs Accordion
Frequently Asked Questions
Employment identity theft occurs when someone uses your personal details, such as your Social Security Number, to gain a job or income without your knowledge. Unlike financial identity theft, which targets your money through unauthorized bank charges or credit card fraud, employment identity theft is used to pass background checks or meet employment requirements, and its impact is often seen on tax records, Social Security benefits, or employment history.
The blog outlines several red flags including unexpected IRS notices about wages you didn’t earn, denial of Social Security benefits due to mismatched records, unrecognized background check inquiries from employers you’ve never contacted, and receiving job-related correspondence or offers for positions you never applied to. These signs suggest that your SSN or personal details may be in use by someone else.
If you suspect employment identity theft, the blog recommends acting quickly by reviewing IRS notices and Social Security statements, contacting the IRS or Social Security Administration to report discrepancies, and filing an identity theft affidavit. It also advises freezing your credit with major bureaus, filing fraud reports with the FTC and local law enforcement, and monitoring your credit and employment records regularly to catch any unusual activity early.
Privacy tools such as Cloaked can safeguard your personal details by allowing you to mask or create aliases for your real information. This means that when applying for jobs or registering for services, your genuine Social Security number, email address, or phone number remains hidden, reducing the risk that this sensitive data will be exposed in data breaches or phishing scams, and thereby minimizing the chances of employment identity theft.
At Cloaked, we believe the best way to protect your personal information is to keep it private before it ever gets out. That’s why we help you remove your data from people-search sites that expose your home address, phone number, SSN, and other personal details. And to keep your info private going forward, Cloaked lets you create unique, secure emails and phone numbers with one click - so you sign up for new experiences without giving away your real info. With Cloaked, your privacy isn’t a setting - it’s the default. Take back control of your personal data with thousands of Cloaked users.
*Disclaimer: You agree not to use any aspect of the Cloaked Services for FCRA purposes.
