Affinion Security Center: Keep a Lookout for Medical Theft

When the term “identity theft” comes to mind, most people think of credit cards and bank accounts. But there is another form of dangerous identity theft that can be equally devastating—the theft of medical records. The New York Times reported on this quickly expanding type of fraud. In 2007 alone, 250,000 Americans had their medical records compromised. According to Pam Dixon, the executive director of World Privacy Forum, medical identity theft is on a rapid rise. Another study conducted by Javelin Strategy & Research, the 2010 Identity Fraud Survey Report, revealed that 7% of identity theft victims reported that their health insurance information was stolen. “We’re seeing more criminal access to private medical records in our survey now, and therefore, we expect to see resulting increases in health care fraud in future years’ studies,” said James Van Dyke, president of Javelin.

Thieves have many uses for medical information. They can steal someone’s name and Social Security number to obtain medical services, from routine exams to major surgery. It is actually a fairly easy process, as most medical providers do not ask for more information beyond insurance information. Thieves can also sell this information as well. And of course, claims can be made in someone’s name. In one famous case in 2006, a medical clerk in Florida stole the records of more than a 1,000 Medicare patients and sold it to a cousin, who was able to make $2.8 million in phony claims.

Medical identity theft can be potentially more damaging than traditional identity theft because outstanding bills can be left unpaid for years. This could cause permanent damage to your credit. Of course, medical information is perhaps some of the most personal information someone possesses. To have this information stolen can be a traumatizing experience for anyone, not to mention the fact this information could be used to hurt someone’s reputation. According to Javelin, health insurance-related identity fraud is expensive for the victim. While the average identity fraud victim pays $373, the health insurance fraud victim pays an average of $2,228.

Fortunately, there are steps you can take to ensure you’re not in the cross-hairs of a medical identity thief. Companies such as Affinion Security Center can safeguard your medical identity through their comprehensive monitoring service. Affinion has outlined several steps you can take to prevent medical theft:

1. Keep track of insurance cards
2. Scrutinize those statements
3. Get an annual statement
4. Check your credit report
5. Get copies of medical records
6. Avoid free offers of medical service

For more information about preventing medical identity theft, visit the Affinion Security Center.