Medical Identity Theft: Don't Be
a Victim
Many people are familiar with identity theft, in
which con artists use another person’s personal information to commit fraud.
Identity theft encompasses a range of crimes, from using a stolen credit
card to make an illegal purchase to employing a pilfered social security
number to establish a new identity.
One truly alarming twist on this trend is medical
identity theft, a crime that can threaten your family’s well-being. The Iowa
Society of Certified Public Accountants offers an overview of medical
identity theft and steps you can take to avoid becoming a victim.
Anatomy of a crime
Much like other identity thieves, medical ID scammers steal personal data,
typically insurance information or social security numbers. The difference
is that these scams involve health care. These thieves may use your identity
to get medical care or medications. That’s not the only danger, though. In
some cases, dishonest health care providers or a scammer may use stolen
personal information to file a false claim and receive reimbursement from an
insurance company. If you are the victim of medical ID theft, you likely
will not be aware that your data has been stolen and that your medical
records now show a history of illnesses or procedures that you have never
actually had.
An added danger
Unlike conventional identity theft, medical identity theft can actually
endanger your health. If a scammer has medical procedures performed using
your identity, that person’s medical history is now added to your own.
Medical identity theft victims who go into the hospital for needed
procedures have found out that their records show incorrect information
about previous medical conditions. As a result of such mix-ups, patients may
receive the wrong blood type in a transfusion or be given a drug to which
they’re allergic. There are financial consequences as well. Victims often
face credit problems after scammers ring up unpaid bills in their names,
which can damage their credit ratings.
Look for warning signs
Medical identity thieves carefully conceal their actions, but there are
warning signs that can alert you to a possible problem. For example, you may
get a communication from your insurer or a bill from a physician that refers
to an unfamiliar medical visit or service. You may also receive notices
demanding payments for medical bills in your name. If any of these occur,
contact the insurance company or physician immediately to find out more
information. The World Privacy Forum also recommends that you ask your
insurer for a listing of benefits paid in your name and request a copy of
your current medical files from all your insurers.
A personal health record
It’s a good idea to keep a personal health record that details any illnesses
you have had, medical services you’ve received, and medications that you
take. It will help you answer questions about your health and identify
potential medical ID theft when something on your records doesn’t make
sense.
Do you have further concerns about potential fraud
risks facing your family? Your local CPA can help. Consult him or her with
any questions you have on these or other financial issues.
Access “Find a CPA.”
