Employment identity theft — where someone uses your SSN to get a job — can saddle you with unexpected tax bills, disqualify you from unemployment benefits, and damage your Social Security retirement record. Here's how to detect and fix it.
Employment identity theft is one of the least-discussed but most financially damaging forms of identity fraud. It happens when someone uses your Social Security number to obtain employment — either because they're undocumented and need a work-eligible SSN, or because they're evading a criminal record or outstanding warrants. You may not discover it for years, and when you do, the consequences can be severe.
The most common way victims discover employment identity theft is through an unexpected IRS notice. If someone is working under your SSN, their employer is reporting wages to the IRS under your name. When you file your tax return, the IRS sees income you didn't report — and sends you a bill for the taxes owed on wages you never earned. This is often the first sign that something is wrong.
Other signs include: receiving a W-2 from an employer you've never worked for; being denied unemployment benefits because the system shows you're currently employed (when you're not); receiving a Social Security statement showing earnings from states or employers you've never worked for; or being contacted by an employer's HR department about an employee using your SSN.
To check your Social Security earnings record, create a my Social Security account at SSA.gov. Your earnings history shows every year's reported wages by employer. Review it annually — any employer you don't recognize is a red flag. You can also request your complete earnings record by mail using Form SSA-7050.
If you discover employment identity theft: file a report with the FTC at IdentityTheft.gov and get a personalized recovery plan. Contact the IRS Identity Protection Specialized Unit at 1-800-908-4490 — they can flag your account and help resolve fraudulent income reports. File IRS Form 14039 (Identity Theft Affidavit) and enroll in the IRS IP PIN program to prevent future fraudulent filings.
Also contact the Social Security Administration to correct your earnings record — fraudulent wages reported under your SSN can affect your future retirement and disability benefits if not corrected. The SSA has a process for correcting earnings records, but it requires documentation. Keep records of every step you take: dates, names of representatives you spoke with, and case numbers. Resolution typically takes 6 to 12 months but is achievable with persistence.
Safety 1st Editorial Team
This article is credited to Safety 1st Editorial Team. Safety 1st Consumer Protection has republished this content with attribution.