You’ve just landed your dream job. A welcome email hits your inbox, and it’s asking you to complete onboarding paperwork, set up direct deposit, and submit your Social Security Number. You don’t bat an eye; it seems routine. But what if that email isn’t actually from your new employer?
New hires are prime targets for identity theft. Scammers exploit vulnerabilities, and, unfortunately, the hiring process is extremely vulnerable. The onboarding process requires sharing sensitive personal information, which presents a prime opportunity for those looking to steal it.
Luckily, awareness of where identity theft risks are most prevalent during onboarding, how scammers prey on new hires, and the warning signs to look out for can help you take preventive steps to protect your identity.
What is Identity Theft?
Put simply, identity theft is when someone accesses your personal or financial information and then uses it without consent. They may use this information to open new lines of credit in your name, buy things with your existing credit cards, or get a job, among other things.
If you’ve never experienced identity theft, consider yourself lucky. Identity theft is a common issue and can happen to practically anyone. Last year, over a million people reported identity theft to the FTC (Federal Trade Commission). It’s more common than you think, and protecting your information is more important than ever in this digital age.
Why New Employees Are Prime Targets for Identity Theft
If you’ve ever gotten a new job, you know the drill. The hiring process is full of new emails, new logins, and loads of paperwork (on which you fill out sensitive information).
Because each employer’s hiring process is different, everything can seem unfamiliar to a new hire. Unfortunately, this means that fake requests may seem legitimate.
Where Identity Theft Risks Appear During the Hiring & Onboarding Process
The onboarding process is full of identity theft risks, and scammers prey on new hires’ lack of awareness. Knowing the risks is the strongest first step towards protecting your identity during the hiring process.
Sharing Your Social Security Number
Employers legitimately need your Social Security number for a host of reasons, including tax forms and employment verification. Unfortunately, your Social Security number is the window into your personal information.
Your SSN is a common target for scammers, so you should take extra steps to protect it. Submit it only through verified HR portals, and confirm all requests with an organizational representative before sharing.
Setting Up Direct Deposit
It is common for employees to provide their bank account numbers and routing numbers during the hiring process to set up direct deposit. For obvious reasons, scammers prey upon these numbers, too. If a scammer has your account and routing numbers, they have access to all of your cash.
Keep an eye out for the most common forms of these scams, including fake payroll forms and direct deposit diversion programs.
Completing Background Checks
Background checks are extremely common and generally legitimate. For legal and safety reasons, employers need to verify that a new hire is who they say they are. This often includes verifying your employment history, education, financial records, public digital footprint, and public records.
Unfortunately, background checks also present a vulnerability. Fake employers may send background check forms requesting excessive personal information. To ensure your safety, be sure to only complete background checks through verified providers.
Creating Company Accounts & Passwords
New hires often receive access to a host of new accounts, including email, HR portals, benefits platforms, and payroll systems. Because of their unfamiliarity with these systems, new hires are vulnerable to exploitation via fake login pages and credential-harvesting software.
To keep yourself safe, be sure to verify URLs, use unique passwords, and enable multi-factor authentication, where available.
Receiving “Urgent” Requests from HR or Your New Boss
As a new hire, receiving an urgent request from HR or your boss can be extremely stressful. Scammers know this and exploit it often through boss/HR imposter scams.
Scammers typically strike during a new employee’s first few weeks, as they don’t yet know the company’s standard procedures. They may reach out to ask you to resend information or to purchase gift cards on behalf of the team.
Here are a few “best practices” to identify and avoid these types of scams:
- Don’t buy gift cards for anyone who asks virtually. Never share gift card PINs virtually, either.
- Don’t share personal information with anyone whose identity you can’t verify. Double-check email addresses and name spellings. For instance, if you’ve received an email from HR before, compare the addresses.
- Before you act, pause and check it out. Ask someone that you trust at the company before you take any action.
Warning Signs that Your Identity May Be At Risk During the Onboarding Process
Here are a few telltale signs of exploitative onboarding communications to keep an eye out for:
- Poor grammar and formatting
- Emails from personal Gmail/Yahoo accounts
- Unexpected requests for sensitive information
- Pressure to act immediately
- Links that don’t match the company website/email addresses
- Unexpected or strange attachments
Worried you may have accidentally handed your information over to a scammer? Here are a few signs that your identity may have already been compromised:
- Unknown bank accounts
- Unfamiliar credit inquiries
- Issues while filing taxes
- Missing paychecks
- Collection notices for unfamiliar debts
How to Protect Yourself from Job-Related Identity Theft / Fraud
If you’re starting a new job, awareness can mean the difference between being a victim of identity theft and not being one. Here are a few steps that you can take to protect yourself before, during, and after the hiring process.
Before You Submit Personal Information…
- Verify email addresses carefully.
- Use official, verified contact information for HR
- Never send sensitive documents over email unless instructed through a verified process.
While Creating New Accounts…
- Set unique, hard-to-guess passwords.
- Enable multi-factor authentication (if possible)
- Avoid reusing passwords from your personal accounts
After You’ve Completed Onboarding…
- Regularly vet your bank and credit card accounts
- Review credit reports regularly
- Conduct a personal information search to see whether your information has been compromised.
If Something Feels Off…
- Trust your instincts
- Pause before you act, and take time to verify on your own
- Never let urgency pressure you into forfeiting information
Start Your New Job With Confidence
Starting a new job shouldn’t mean risking your identity. Though most employers take plenty of steps to secure their onboarding processes, some scammers slip through the cracks.
Don’t rely completely on the security of your employers’ onboarding process. Scammers exploit new hires’ excitement about the new position and their lack of awareness of identity theft to their advantage.
Being aware can enable you to take the necessary steps to protect your information throughout the hiring process. Taking steps now to prevent identity theft can save you months (or years) of recovering from its impacts down the line.
