You’ve just nailed an interview for your dream job, and the employer is ready to run a background check before making an offer.
“No problem!” you think, confident in your clean record.
But soon enough, a recruiter shares that they can’t offer you the position due to your extensive criminal history. Confused, you say, “But I’ve never committed a crime!”
Come to find out, a criminal has been using your Social Security number, harming your reputation and your record.
Social Security identity theft occurs when someone illegally uses another person’s Social Security number (SSN) to commit fraud. The thief impersonates the other person’s identity without their permission or knowledge.
Social Security identity theft can have long-lasting implications on victims’ lives. Today, many employers offer comprehensive employee identity theft protection as part of their benefits packages. These programs allow employees to monitor their personal information, including Social Security numbers and other personally identifiable information (PII), to help them detect possible data leaks and fraudulent activities.
If you think Social Security identity theft only occurs if you directly give out your SSN, think again! There are many strategies criminals use to obtain access to Social Security numbers, including the following.
Scammers hunt for ways to steal SSNs by breaching data or identifying poor security practices that leave information easily accessible. For example, in early August 2024, National Public Data suffered a massive breach in which a hacker leaked 2.9 billion records with SSNs and other personal information in plain text. Unfortunately, incidents like these happen daily, exposing the Social Security numbers of hundreds of thousands of individuals at once.
Criminals, at times, target individuals rather than organizations to gain access to SSNs. In phishing attempts, attackers use social engineering techniques to deceive individuals into revealing their sensitive information willingly. These techniques involve psychological manipulation, such as disguising emails as reputable sources, to convince recipients to divulge their information.
Verizon reported that the reported rate of phishing attempts has grown over the past few years in their 2024 Data Breach Investigations Report. They noted that the median time users fall for phishing attempts is less than 60 seconds, meaning you can become a victim fast.
A simple mistake can cause irreparable damage. Misplacing your Social Security card or even a note with your SSN can lead to identity theft. Remember, you should only carry your card when needed and store it securely the rest of the time.
Misplacing your Social Security card makes it easier for a criminal to steal your information, and you can also run into replacement challenges. Per the Social Security Administration (SSA), individuals can receive no more than three replacement cards in one year and ten replacement cards per lifetime.
Scam websites are designed to look legitimate, fooling you into providing personal information. These sites can be hard to distinguish from real ones, so always double-check for signs that something seems off.
Social Security identity theft doesn’t only occur online. You could receive a phone call from a hacker impersonating a law enforcement officer, employees of the Social Security Administration, or some other government authority. Additionally, impersonations can also happen face-to-face, online, and via SMS. Remain vigilant and ask for credentials when necessary.
Once a criminal has your Social Security number, there are many ways they can exploit it. Below are some common ways:
In cases where criminals desire monetary gain, they may use a stolen SSN to open a new financial account or rack up charges on open and existing accounts. Some banks only require a Social Security number, date of birth, and address to open a new account, giving way for anyone to open an account under your name. They may commit further crimes with the new account, such as laundering money or transferring your hard-earned cash to themselves in cases of existing accounts.
Sometimes, an attacker may steal a Social Security number and commit tax-related identity theft. In these instances, the goal is often to file a tax return using someone else’s personal information to steal their tax refund.
The Internal Revenue Service (IRS) encourages anyone who believes they may be a victim of tax-related identity theft to take action by:
Identity thieves can use your name and SSN to receive medical care and send their bills to your health insurance provider (because it’s all in your name). According to a National Public Radio (NPR) story, “medical identity” fraud happens in several ways. The NPR story highlights Evelyn Miller, who began receiving text messages from Emory University Hospital about her wait times. A week later, she received a bill for over $3,600 for treatment she never received.
Scammers can use a stolen Social Security number to claim unemployment benefits through the state or other benefits from the SSA, including retirement, disability, Medicare, survivor benefits, and Supplemental Security Income (SSI). If and when the victim tries to access these benefits, they may no longer have access to the financial support they need.
To avoid penalties and punishments, identity thieves may take advantage of someone else’s SSN by using it to commit serious crimes. If they run into trouble with law enforcement officers, they provide your information instead of theirs, enabling them to walk away from the crime. Worse yet, their actions could end up on your record, leaving a trail of criminal history you had no part in. Yikes!
To protect yourself and get ahead of lasting consequences before it’s too late, watch for the following warning signs that your SSN might be compromised.
Can’t find your Social Security card? Whether it’s lost or stolen, this is a red flag. If that’s the case, you might become a victim of identity theft. Dig through your surroundings to ensure you or a loved one didn’t place it elsewhere.
While a missing Social Security card doesn’t always mean immediate identity theft, it can increase the risk. Monitor your accounts and personal information to determine whether further action is needed.
Changes in your financial situation can be hard to spot, primarily if the criminal uses your SSN to commit fraud or rack up charges slowly. Some examples of unrecognized financial activities worth digging deeper into include:
Unexpected changes to your mail delivery, especially missing bills, financial statements, credit cards, and tax-related documents, could indicate theft. If your usual bills and regular mail stop arriving, you may want to check your account settings for suspicious updates or address changes you didn’t make. Additionally, receiving mail with someone else’s name at your address could indicate that a thief is using your information.
In many cases, if someone has stolen your SSN and filed a tax return, you’ll find out as soon as you attempt to file your return. Per Intuit TurboTax, when the IRS receives two tax returns with the same Social Security number, they will reject the second return. The IRS then sends written notices explaining that a return was filed and you may need to take action to protect your identity.
In the worst-case scenario, imagine committing a minor traffic violation and being pulled over only to find out that there’s a warrant out for your arrest. Suddenly, you have some major explaining to do. If you suspect your identity has been stolen and used to commit crimes, you must notify your local law enforcement agency immediately.
While preventing Social Security identity theft with certainty is impossible, these tips can help reduce your risk.
While it might sound obvious, you should never share your Social Security number with anyone except trusted sources like loved ones, employers, and government officials. Never hesitate to ask how a trusted source will use your SSN and what systems they have in place to protect your identity.
Avoid falling for scams and phishing attempts by questioning the source and sender asking you for your information. Don’t carry your Social Security card in your wallet, purse, or backpack. Store your Social Security card and related information safely and securely, ideally with a lock only you can access. Never write your SSN down on easily accessible papers.
If you must share your information via email or enter it into a system, always use encryption to protect your data. Consider asking the recipient of your information what encryption methods they use to ensure you feel comfortable sharing your information with them and their systems.
Don’t fall victim to Social Security identity theft by missing initial warning signs. The sooner you spot the signs in their tracks, the quicker you can address the situation before it spirals. This requires monitoring your financial activity, accounts, credit reports, credit score, medical details, and any other personal information, ideally daily or weekly.
Employers usually need to collect SSNs for tax reporting purposes. Organizations should do everything they can to protect their employees’ identities and Social Security numbers, including:
Being a victim of Social Security identity theft is frightening and frustrating, but you can take action! Arm yourself with the knowledge and behavior to protect your identity before it’s too late. If you believe someone stole your Social Security number, immediately report it to the Federal Trade Commission.
Read more about how organizations and employees can prevent employee identity theft.
Edited by Monishka Agrawal