When people talk about identity theft, they usually think of personal information like stolen credit card numbers and password leaks. But it’s also possible for someone to steal that information for employment reasons.
What is employee identity theft?
Employee identity theft occurs when someone steals someone else’s Social Security number (SSN) or other personally identifiable information (PII) to apply for a job under pretenses.
Employee identity theft is a serious and harmful crime. Fortunately, many businesses can turn to employee identity theft protection software to provide their employees with a solution for identity theft protection and monitoring purposes. These software tools help proactively monitor an employee’s identity and notify them of possible data breaches.
Signs someone may be using your identity for employment
Realizing someone might be using your information to commit employee identity theft can feel frightening. Sometimes, the signs of theft aren’t even obvious. The following red flags may indicate you are a victim of employee identity theft.
You receive tax forms (W-2 or 1099) from employers you have never worked for
If tax season rolls around and you receive a W-2 or 1099 form from an employer you didn’t work for, someone else may be using your identity to work for that company. Contact the employer immediately for additional information and insights to determine whether it was a mistake or identity theft.
The IRS sends you notices about your identity
The IRS sends a CP01E notice when it suspects someone else is using your Social Security number to commit employment fraud. Upon receiving a CP01E notice, consider reviewing your personal and financial accounts for suspicious behavior, enabling fraud alerts on your credit accounts, and reviewing your information with the Social Security Administration to understand the reported earnings tied to your Social Security number.
Want to learn more about Employee Identity Theft Protection Software? Explore Employee Identity Theft Protection products.
How to protect yourself from employee identity theft
While one can never fully eliminate the risk of employee identity theft, certain steps can be taken to protect and safeguard personal information to reduce the risk.
Keep your PII confidential
Revealing your PII to the wrong person is all it takes to put yourself at risk of employee identity theft. Never share your personal information aloud with someone who does not need access to it, even if they seem trustworthy. Don’t share your SSN publicly. Although emails are encrypted, avoid sharing it via email as much as possible.
Keep your PII, especially your SSN, private and store it in a safe and secure location where, ideally, no one else can access it. Don’t carry your Social Security card in your wallet or purse. And make sure to never leave the original or copies in open and unlocked locations, including digital folders and files.
Opt for a virtual private network (VPN) over public Wi-Fi networks
Public and unsecured Wi-Fi networks pose security risks, potentially exposing your information to hackers and criminals. Avoid using public Wi-Fi networks when you can, or use a virtual private network (VPN) to ensure your personal information isn’t mistakenly exposed or leaked. A VPN encrypts your personal data and can mask your IP address, making it harder for unauthorized eyes to track your activity and information online.
Don't fall for phishing scams
Whatever you do, don’t share your information with unauthorized parties, even if you receive a request that seems legitimate or trustworthy. Hackers and criminals conduct phishing attempts via email, phone, and text to convince individuals to share their personal or financial information. Pay attention to misspelled email addresses, grammatical errors, and other signs that something feels off.
What’s most problematic about phishing scams is that a sender or caller may present credentials that look identical to real ones. For example, a hacker may pretend to be a government official, such as someone from the Internal Revenue Service (IRS), one of your former employers, or pretend to be a colleague with a name you recognize. Criminals adopt these personas through imitation to increase their chances of stealing identities successfully.
What should employers do to protect against employee identity theft?
Both individuals and the parties they provide it to, such as employers, play a significant role in protecting personal and financial information. There are some best practices and measures employers need to adopt to play their part in protecting their employees’ information to reduce the risk of identity theft.
Deploy strong security measures
Robust and up-to-date security practices allow companies to secure information to the best of their abilities. Some examples of solid security measures include:
- Access controls: Role-based permissions and multi-factor authentication (MFA) enforcement are ways employers can limit access to protected information.
- Data encryption: Employers must secure data during transmission and storage using various encryption measures.
- System monitoring: Organizations can leverage data breach monitoring solutions to detect unusual activity or potential security breaches and act quickly on them.
- Regular training sessions: Educate employees about phishing attacks and best practices for managing personal information and data.
- Secure data disposal: Implement processes to dispose of sensitive information that’s no longer needed, such as shredding physical paperwork and documentation and secure erasure for digital data.
Screen and train employees handling sensitive data and personal information
Employers must limit access to personal data and only provide access to information necessary for someone’s job function to reduce the risk of unnecessary exposure. In many instances, only members of the human resources team (and often a subset of the entire team) receive access to sensitive data and personal information. Conduct background checks, especially for those handling sensitive data.
Anyone in the organization with access to others’ PII should attend regular trainings on data management practices (including data disposal) and strategies for preventing data breaches.
Offer comprehensive identity theft protection as a benefit
Consider including employee identity theft protection as a benefit in your total compensation package. These services allow employees to use credit report monitoring, fraud alerts, and restoration assistance if they find their identity stolen.
Preventing identity theft isn’t just beneficial for employees but for employers as well. The fear, frustration, and uncertainty of identity theft can lead to reduced productivity as employees tend to these matters.
Top 5 employee identity theft protection software
Employee identity theft protection software helps businesses offer identity theft protection to their team members as an employee benefit within their compensation package. These solutions help monitor employees’ personal information (and sometimes their family members’ information) and provide identity monitoring of credit reports and other public records.
To qualify for inclusion in the Employee Identity Theft Protection category, a product must:
- Proactively monitor an employee’s identity and account information on the dark web, in credit reports, and in public records
- Notify employees when instances of possible fraud or data breaches are detected
- Comply with regulations and standards for evaluating fraud
* Below are the top five leading employee identity theft protection software tools based on their G2 score as of April 2024. Some reviews may be edited for clarity.
1. Keeper Password Manager
Keeper Password Manager is a password security and management platform businesses can use to manage, secure, and enforce strong passwords across employee profiles, applications, and websites. Additionally, companies can use Keeper to protect sensitive files in an encrypted digital vault and utilize dark web monitoring.
What users like best:
“Keeper Security rocks! It's a solid Password Manager tool with reliable business features that simplify security and make management a breeze. Setting it all up is a piece of cake — quick and hassle-free. Plus, the log function provides a top-notch overview. And their support is nothing short of dependable. I highly recommend it!”
- Keeper Password Manager Review, Marv D.
What users dislike:
“I would like the password fill option to be page-specific rather than site-specific. As somebody who has to set up many user accounts on the web, the auto-fill sometimes defaults my username and password to the username and password of an account I'm going to set up. It's not that big of a deal to temporarily turn off the extension while I'm using screens.”
- Keeper Password Manager Review, Jordan N.
2. ZeroFox
ZeroFox is a unified cybersecurity platform that provides digital risk (domain, brand, social media, executive) protection, dark web monitoring, incident response readiness, threat remediation, and adversary disruption. It helps security teams prepare for and protect against emergent cyber threats in a single platform experience.
What users like best:
“It takes some of the burden off my staff when it comes to the dark web. We can feel secure knowing that our executive leadership team and brand are safe on the internet. Because of ZeroFox, several malicious sites have been removed from the web. We are focused on our brand, and having protection like this is worth it.”
- ZeroFox Review, Edward G.
What users dislike:
“I would like to see the ability to have more customized reports, including charts and graphs, but I do know that this is on their roadmap.”
- ZeroFox Review, Deanna M.
3. Identity Guard
Identity Guard offers fraud monitoring and alerts, round-the-clock US-based fraud agents, credit monitoring, and identity theft insurance. With over two decades of experience in business, Identity Guard is a reliable and trustworthy protection service for many businesses and individuals.
What users like best:
“Every month, I get a report on how safe I am. This includes what accounts are open in my name and my credit report. It's very beneficial.”
- Identity Guard Review, Jake I.
What users dislike:
“Identity Guard can be costly, and the app does not always work on my phone.”
- Identity Guard Review, Robin S.
4. Guardz
Guardz is an AI-driven cybersecurity solution that mitigates risks by providing phishing protection, ransomware protection, and data loss prevention. With Guardz, organizations can configure security controls in one centralized location, manage devices, and train employees on industry-standard best practices.
What users like best:
“Guardz is a comprehensive and affordable cybersecurity solution that can help businesses protect themselves from cyber threats. Guardz offers a variety of features to protect businesses from a wide range of threats, and it is easy to use and manage. Guardz is an excellent option for small businesses looking for a comprehensive and affordable cybersecurity solution.
Personally, my organization uses Guardz to demonstrate compliance with various controls across multiple compliance frameworks and regulations. We have also found that the email security module is a great way to address the constant barrage of spam emails and phishing attempts that my employees face daily. I highly recommend Guardz for the return on investment it has provided and the ease of implementation.”
- Guardz Review, Adam R.
What users dislike:
“While Guardz is designed to be scalable, some larger organizations with complex IT environments may require additional customization or scalability options. This may involve more advanced configurations or tailored features to meet specific enterprise-level requirements.”
- Guardz Review, Manuel E.
5. Agency
Agency offers personalized and managed cybersecurity for businesses for digital protection across company and employee-owned devices. It provides 24/7 security event monitoring, response support, and executive digital protection to protect high-risk members of organizations.
What users like best:
“Agency has been extremely helpful in various aspects of cybersecurity at our firm. Tyler and the team have helped us ensure that we are complying as a firm with our newly updated internal cybersecurity policies and have also given us training on cybersecurity best practices, which are invaluable to our firm. The team at Agency is always very quick to respond to all email inquiries and any issues we may be experiencing. We really enjoy the personalized service experience we've received with Agency.”
- Agency Review, Amanda T.
What users dislike:
“It has to be toggled off and back on in some scenarios like public Wi-Fi.”
- Agency Review, Zach G.
Are you really who you say you are?
Employee identity theft is harmful and criminal behavior. Individuals can protect their identities by keeping their PII confidential, using VPNs, and being aware of phishing scams. Employers also have a significant role in protecting employee identities and must implement robust security measures, train team members handling sensitive information, and offer identity theft protection as a benefit.
Is your organization’s security posture robust enough? Find out how to make it stronger.
Alyssa Towns
Alyssa Towns works in communications and change management and is a freelance writer for G2. She mainly writes SaaS, productivity, and career-adjacent content. In her spare time, Alyssa is either enjoying a new restaurant with her husband, playing with her Bengal cats Yeti and Yowie, adventuring outdoors, or reading a book from her TBR list.
