This is a grim reality where criminals use your medical info to access treatments, rack up bills, and commit insurance fraud; it’s a crime devised to wreck you financially and compromise your health and safety. The good news is that it’s preventable, provided you implement the precautionary measures that we’ll discuss in this guide.
What is medical identity theft?
As touched on earlier, it’s the unauthorized and illegal use of someone’s information (e.g. name, Social Security number (SSN), or insurance details) to obtain prescriptions, medical assistance, and even insurance payouts. This type of theft is deemed more severe than credit card fraud in certain cases, given its potential impact on health and reputation, some of which include:
· Delayed or denied treatment
· Incorrect or incomplete patient records
· Increased healthcare costs
· Unpaid bills and debt collection notices
· Potential harm to the victim’s credit score
How prevalent is it, you might ask? For one, it accounts for over 2 million identity theft cases reported, as revealed by Forbes. Also, as per another report, about two-thirds of the victims of these cases spent $13,500 on average to resolve their situation, and even more alarming is how this fraud often goes unnoticed until it’s too late.
Signs of medical identity theft
Here are some common red flags to watch for that might indicate a potential attempt at impersonation and theft:
Unfamiliar medical bills
Receiving bills or insurance statements for services you didn’t request is a major red flag.
Denied claims
Unexpected denials or claims that exceed your coverage limits can signal that someone else is using your insurance.
Errors in medical records
Inaccurate information in your records, such as operative procedures or conditions you don’t have, could mean your identity has been compromised.
Collections notices
Getting contacted by debt collectors for medical bills you didn’t incur is another sign of medical identity theft.
Unexpected insurance cards or letters
Receiving insurance materials for a policy you didn’t sign up for can indicate fraudulent activity.
Unfamiliar appointment calls
Healthcare providers calling about appointments you didn’t schedule may be trying to reach the person who is using your identity.
Unsolicited requests for user information
If someone constantly blows up your phone or floods your inbox out of the blue, all while pushing hard for your information, that’s most likely a scammer.
Revised insurance or payment plan
Unexpected increases in premiums or changes to your health insurance coverage could be linked to fraud.
Strange activity online
Are there unfamiliar actions on your insurance portal? Then you might not be the only one using your account.
How to avoid medical identity theft
This step calls for a proactive and informed approach, of which you’ll find some effective strategies below.
Safeguard your personal and health insurance information
Think of your SSN and health insurance details as keys to a locked vault of your identity. If they fall into the wrong hands, you could be toast. So, share them only when necessary, and ensure the recipient has reliable secure systems in place to protect them.
If you need to discard sensitive documents, like medical bills or insurance statements, responsibly shred them thoroughly. Don’t give criminals the chance to retrieve valuable data from your trash. Likewise, if you must transmit personal information online, use encrypted portals or email systems and avoid open or unsecured channels at all costs.
Watch your medical records and bills closely
Anytime you receive your Explanation of Benefits (EOBs) and medical bills, scrutinize them for unfamiliar charges, treatments, or services you didn’t authorize or receive. Also, regularly check your credit report for signs of unpaid debts or collection notices tied to services you don’t recognize; they could be early warning signs that someone else is using your medical identity.
Be mindful of sharing information with family and friends
It seems harmless to share health insurance details with a loved one, but this creates room for potential misuse. Even well-intentioned friends or relatives might unintentionally expose your information to theft. To avoid such, set up separate insurance accounts for family members or appoint a trusted representative to manage shared expenses.
Utilize identity theft protection services
You can’t go wrong with providers like IDShield, LifeLock, and Aura, considering they monitor your credit reports, medical records, and insurance claims for unusual activity. If something suspicious arises, these services can alert you promptly, often before you even notice the issue yourself.
Run a background check on those handling your data
You might trust your healthcare providers, but what about everyone else who has access to your records, including the billing and insurance department? Therefore, verify all relevant identities and claims through a people search platform before sharing any sensitive data.
Report suspicious activities immediately
Do you suspect foul play on your identity or account? Notify your healthcare provider, insurance company, and local law enforcement right away to contain the damage. Don’t downplay the need to file a police report; it serves as an official record and can help you rectify issues with your insurance company and medical records.
Stay informed
Knowledge is your first line of defense. In this situation, it demands understanding what medical identity theft is, how it happens, and the potential consequences. It also requires you to know your rights as a patient and consumer, by which you become less susceptible to medical-related scams.
Conclusion
Medical identity theft is a serious and growing concern, quite alright. But should its prevalence force you to live in fear? No, not now that you have the right information to address it. So, we encourage you to implement the tips we’ve shared, educate others, and continuously arm yourself with up-to-date knowledge on this threat.
