Employment Related Fraud


New laws are making it difficult for illegal immigrants to gain employment—thus entrepreneurial thieves are after your good name to sell it for a high price.

How does employment-related fraud occur?

A criminal background, an illegal status or even a bad work history can make it difficult to find employment. That’s why identity thieves are often resorting to employment fraud. In order to pass a background check or employment requirements, a fraudster could use your Social Security number. Even if the employment process requires more than an SSN, employer background checks are often not very thorough. Identity thieves may only need a small amount of additional information.

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How could employment related fraud affect my identity?

If an identity thief uses your information for employment purposes, there could be a devastating effect on your employment history and your name. Since incorrect employment will be reported to the Social Security Administration, you may face tax audits, lost tax refunds and errors on permanent government records. They could even use your identity for medical services, home utilities, credit and more. And if you apply for a new job, your employment history may be incorrect and misleading. The effects could take years to resolve.


  • Out of all identity theft complaints in 2011, 8% reported to be victims of employment-related fraud.1
  • Arizona, Colorado, New Mexico and Texas had the greatest percentage of employment-related fraud.1

1 Federal Trade Commission. ”Consumer Sentinel Network Data Book for
January – December 2011.”

Federal Trade Commission. “Consumer Sentinel Network Data Book For
January – December 2011.” February 2012.

Javelin Strategy & Research. "2012 Identity Fraud Report: Social Media and Mobile Forming
the New Fraud Frontier." February 2012.

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