Medical Identity Theft: Bad Medicine for Good Consumers
Health care is supposed to help, not hurt.
That’s why reports of fraud originating with medical records are, even in this age of increasing identity theft, all the more shocking.
Perhaps the worst aspect of medical identity theft is that the victims are often (up to 80% of the time, according to some reports) unaware of any misdeed until it’s too late. Receiving a collections phone call or worse, approached by law enforcement officials, these individuals are alerted of crimes committed in their name…but by a total stranger.
The Heart of the Matter
One unsettling fact that keeps reappearing in reports is that the majority of medical records theft—and the subsequent stealing of a victim’s identity—tends to come from within the medical establishment.
This means that information is deliberately “leaked”, and then sold, by a member of the hospital, doctor’s office or insurance company.
The majority of health care professionals are innocent of such practices. But the few who hand over information to identity thieves can cause hundreds, thousands or even millions of dollars to former patients by the dozens.
Why it Happens…and Why it’s So Easy
Identity theft via data breach (the hacking of electronic information to obtain multiple individuals’ information) can be tricky. It typically involves an above-average knowledge of computers, as well as of the company the criminal intends to hack.
Medical records are different, ID theft experts say. Unlike banks or credit card companies, medical facilities don’t necessarily utilize anti-breach software that conforms to a definite industry standard.
Theft detection of medical records can therefore be scanty or perhaps not set up an alarm at all—making it hard to trace the breach to a specific insider, and nearly impossible to make an arrest and prosecute.
The Surprise No One Wants to Get
Unfortunately, victims of identity theft may not know anything is amiss until the criminal’s activities lead back to the innocent individual.
The victim is then surprised by harassing phone calls, being declined loans or even an arrest for activities made in the victim’s name by the thief.
By this time, it’s possible that the victim’s credit is run up to the limit (or ruined), loans have been made in his name for which he’s now responsible, and months or years of weeding through each indiscretion and dealing with the law are possible.
Be in the Know
Most identity theft experts agree that being forewarned really is forearmed. Make sure you go over all of your financial accounts frequently for any suspicious activity, that you obtain a credit report annually and that you shred all identifying materials before dropping them in the trash.
A high-quality, reasonably priced credit monitoring service can take you a step further toward being alerted to fraudulent activity against any of your accounts.
And don’t be afraid to ask your doctor or the hospital what protection is in place against your records being withdrawn and used for foul play.
Your involvement is paramount in keeping an ID thief’s hands off your medical records…and away from your bank account.
