Medical identity theft involves accessing someone’s medical insurance information without them knowing. This can include medical care services, medication, therapies, and even surgeries. Benefit owners and providers both suffer from these kinds of activities.
However, in more severe cases, things can be more complex. For example, employees can steal information from providers, or hackers can sell personal information on the dark web.
Either way, medical identity theft is a serious issue that can cause financial and reputational damage to benefit owners.
Understanding Medical Identity Theft
The average cost of healthcare for individuals in the US ranges up to $12,530, which makes it a significant expense.
Hackers access the medical benefits of various owners and utilize their treatments and medications while making sure they don’t find out about it.
Therefore, a single medical identity theft victim could end up with thousands of dollars on credit if they do not pay attention to their information. To prevent these scenarios, you should understand how perpetrators do it.
How Does Medical Idenity Theft Occur?
Most medical identity theft cases include the use of social engineering to extract personal information. This includes sensitive details such as social security number, name, phone details, or address. What’s more, hackers aren’t the only threat when it comes to medical identity theft.
Some healthcare providers are also a big reason for these data breaches. Healthcare providers can also share your information with the wrong sources, helping these hackers complete their goals easily.
How Hackers use Stolen Medical Information
The following are some ways that hackers or thieves may use your personal information for medical identity theft.
- People with limited insurance or no insurance coverage may use your medical information for their benefit. For example, a drug peddler may use your account to purchase medications to sell them off to customers.
- Hackers may use your medical accounts to get payments for procedures they never take. They can treat uninsured or underinsured members by using your account.
This also has a long-term effect on your credit standing. Consider a hacker spending thousands of dollars on treatment under your account without your knowledge. It would set your credit score way behind its benchmark without you realizing it. Moreover, policy providers may not be able to provide medical coverage or any other insurance coverage in immediate scenarios if providers look at the claim histories, credit clearance period, and other technical factors.
Owners with diseases like diabetes, osteoarthritis, or cancer may have even more difficulty.
Additionally, these thefts could cause erroneous medical records, having severe consequences. For example, an identity thief that enters false information such as the wrong blood group into medical records could cause the patient to die as the professionals treating you will choose the blood group present in your records.
Preventing Medical Identity Theft
Medical identity theft is not only a risk for your finances but also for your health. Identity thieves can cost you thousands of dollars if you do not take caution. Thus, we have compiled a few methods to help you prevent any such cases. You can use the following preventive measures to avoid getting stuck in medical identity theft.
Read Notices
Medical policy owners get a notification in case of medical benefits claims from their providers. You should always cross-check these records for any unrecognized activities under your name. We also suggest checking payments to doctors, labs, and pharmacies for unusual activity.
Demand a new ID number
It is best to contact your medical identity provider to assign you a new password in case you notice unwanted activity. Resetting your ID number will allow you to safeguard yourself from unauthorized access.
Keep Details Confidential
It is best not to share your ID details with anyone under any circumstances. It doesn’t matter how trustworthy you think they are. They may directly or indirectly compromise your medical benefits and make you a victim of medical identity theft without you realizing it.
Bottom Line
Medical identity theft is a fraudulent activity in which people get unauthorized access to medical benefits such as medication and treatment under another user’s name. It can cost the actual owner thousands of dollars and may even put their lives at stake.
Simple preventive measures like keeping your information discreet, reading notices and reports for deviations, and demanding a new ID number if things seem fishy can help. You will secure your accounts well if you follow the tips in this piece and avoid becoming a victim of medical identity theft.
Sources
https://www.investopedia.com/terms/m/medical-identity-theft.asp
https://www.consumer.ftc.gov/articles/what-know-about-medical-identity-theft
https://benefits.uasys.edu/media/1788/id-watchdog-guide-to-identity-theft.pdf