Identity Theft on the Rise as Employment Authorization Efforts Intensify

A recent report by Reuters highlights the possible correlation between the demand for pilfered identities and employers’ increased efforts to verify employees’ immigration status, e.g., by using E-Verify. Starting in 2009, federal immigration enforcement efforts have targeted employers rather than workers, and many businesses have been intensifying their efforts to ensure the legality of their workforce. The E-Verify program identifies mismatched names and Social Security numbers but is not designed to flag stolen identities. Accordingly, some undocumented workers have moved away from using their real name and an illegitimate Social Security number and, instead, are purchasing and using stolen names and their accompanying Social Security numbers.

A Javelin Strategy & Research report cited by Reuters found that, in 2010, 3.5% of the U.S. population were victims of identity theft, at a cost of $37 billion. For those whose identities have been stolen, the road to clearing one’s name is lengthy. Credit ratings are damaged when accounts are opened in a victim’s name and delinquencies accrue. Given that some businesses inquire into credit history when conducting pre-employment background checks, negative scores could impact a victim’s employability. Even if accounts are not opened and credit not damaged, there remains the issue of revenue agencies seeking unpaid taxes on wages “earned” by victims, i.e., wages attributed to them but in reality earned by individuals who unlawfully used their name and Social Security number.