How Employment Identity Theft Puts HR & Security Teams at Risk

Employment identity theft: what employees should watch for

While HR and security teams must stay vigilant, individual employees should also know how to spot warning signs that someone might be working under their identity.

Some common red flags include:

• Unexpected IRS notices: Letters from the IRS referencing unreported income or tax filings from unfamiliar employers, which is a sign your SSN may have been used fraudulently
• Duplicate or unfamiliar W-2s: Receiving multiple W-2 forms or one from an unknown employer
• Denied government benefits: Unemployment or Social Security benefits denied due to income or work history you don't recognize, meaning someone may be using your credentials
• Collections or credit hits from unknown employment-related accounts: Such as wage garnishment orders, tax liens, or background check alerts

Employees who suspect identity misuse, for employment or otherwise, should immediately report it to their HR or security team. Adaptive Security advises organizations to offer clear, low-friction reporting channels and educate employees during onboarding and security awareness training about what to look for.

In workplaces where human risk is a frontline concern, collaboration between staff and security teams can significantly reduce exposure to identity‑based threats.

How organizations can prevent employment identity theft

While employment identity theft is difficult to eliminate, a layered defense that combines hiring best practices, targeted training, and cultural awareness can dramatically reduce exposure. Here are three actionable focus areas for organizations ready to get proactive.

1. Strengthen hiring processes

Your hiring process is the first line of defense against identity fraud. To prevent bad actors from slipping through, HR teams should:

• Implement multi-factor identity verification: Go beyond basic document checks. Cross-verify SSNs, addresses, and work histories using trusted third-party services.
• Require real-time video onboarding validation: Live video calls, ideally with camera-on and ID presentation, reduce the risk of impersonation via deepfakes or pre-recorded content.
• Review public-facing profiles for consistency: Check LinkedIn, GitHub, or other professional platforms for profile mismatches, red flags, or overly generic/fabricated content.

These steps help ensure applicants are who they say they are and discourage fraudsters from even attempting to infiltrate your hiring funnel.

2. Train staff to spot social engineering

Even well-designed hiring processes are vulnerable if your team can't recognize manipulation tactics. That's where awareness training comes in. Adaptive Security offers simulation-based training that mimics modern impersonation threats, including AI-generated voice calls and deepfake video interviews.

For example, Adaptive's simulations can mimic job candidates using AI-generated voices or spoofed video interviews, training your hiring team to spot red flags in real time.

Putting recruiters and hiring managers through realistic exercises equips them with the critical thinking and pattern recognition needed to stop fraud before it starts.

3. Build a behavior-aware security culture

Employment identity theft isn't just HR's problem; it's a security issue that touches everyone. That's why the most resilient organizations invest in behavior-aware training across departments. This means:

• Teaching all employees to recognize impersonation techniques, from phishing emails to manipulated credentials
• Encouraging cross-functional collaboration between HR, IT, and security teams to spot anomalies early
• Promoting a culture of continuous vigilance where unusual behavior or document discrepancies are reported and reviewed

Adaptive Security's training platform reinforces this approach by combining simulated attacks with just-in-time learning, helping teams stay alert to identity-driven risks across the entire employee lifecycle.

From risk to resilience: Adaptive Security's role

Employment identity theft highlights a deeper issue: identity misuse doesn't stop at hiring; it becomes an ongoing risk to your systems, data, and people. While Adaptive Security doesn't prevent identity theft itself, it plays a critical role in surfacing the behaviors and patterns that follow it—from credential misuse and suspicious login activity to insider impersonation and phishing-driven social engineering.

Adaptive Security's security awareness training prepares employees to recognize and combat modern attacks. See how our real-world simulations prepare your team to detect employment fraud before it causes harm.

FAQs about employment identity theft

What makes employment identity theft different from other identity theft?

Unlike credit card or account fraud, employment identity theft involves someone using another person's personal information, often their SSN, to secure a job. A victim of identity theft may not notice until tax time, when unexpected wages appear on IRS forms.

Who's most at risk of being impersonated for employment?

Employment identity theft occurs most often to individuals with common names or dormant SSNs (e.g., children, the elderly, or deceased individuals). Job seekers in highly regulated industries (like healthcare or finance) may also be impersonated by those seeking access to trusted roles.

Victims should immediately report the incident to the Social Security Administration (SSA), and check their credit score and bank account.

How can employers verify identities without profiling?

By using consistent, legally compliant verification processes: multi-factor ID validation, live video onboarding, and third-party screening services. The key is standardization; applying the same scrutiny across all candidates reduces both bias and risk, protecting sensitive data.

What should HR teams do if they suspect a fake hire?

Immediately escalate to your security team and begin a discreet investigation. Review access logs, documentation, and system behavior. If fraud is confirmed, follow incident response procedures and report to law enforcement or regulatory bodies as needed.