June 10, 2009
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News: Medical Identity Theft
Identity theft and credit card fraud are the fastest growing crimes sweeping the nation. Every day we hear stories of criminals finding new and creative ways to steal consumers' credit card information to acquire large amounts of cash advances and purchase high ticket items. Here's a new twist; medical identity theft. A report authored by Pam Dixon, Executive Director of the World Privacy Forum states that more than 250,000 Americans a year find themselves victims of medical identity theft and the numbers continue to rise. Typically, many victims are not even aware that they are victims. They discover it when they attempt to get a new credit card or loan, and their credit report is pulled which shows the collection information.
How it works is; the thief obtains an individual's name and social security number or existing credit card information. They then seek out medical treatment at the emergency room using the victim's name and information. Another way thieves steal medical id's is by obtaining the victim's insurance information. Since physician offices rarely ask for any additional information, the thief can illegally obtain pretty much any type of medical treatment including surgeries. The most common method is where individuals who work for medical offices or agencies that steal patient's credit card and insurance information and either sell it or use it for their own personal medical treatment.
Medical identity theft comes with a whole new set of problems. Unlike credit card theft where the consumer for the most part is generally protected, medical claims do not come with the same benefits. Fighting to clear the fraudulent charges could take years. Major errors in medical records also occur as the thieves medical histories become intermingled with the victims. An easy solution doesn't exist on how to protect yourself from medical identity theft, but experts say regularly checking your credit report is essential. Insurance and medical providers say they have stepped up the focus on protecting Americans' information. Some agencies have instituted regularly scheduled audits on their electronic medical record systems. Others have an added benefit of being password protected. Blue Cross and Blue Shield are protecting their clients through a new software program that screens for inconsistencies in medical claims.