Medical Identity Theft: A Rising Yet Hidden Threat to Your Health and Wallet

Research Staff
1 day ago
5 min read

Updated: 4 hours ago

This article explains the increasing dangers of medical identity theft and ways to protect yourself.

By Hemvardhan Bollamereddy

What is Medical Identity Theft?

Medical identity theft is when someone with malicious intent steals your personal information like your insurance ID for fraudulent reasons like:

Obtaining medical services on someone else's dime
Purchasing drugs or medical devices
Submitting fraudulent claims

Medical identity theft is different from other types of identity theft as it has the power to corrupt your medical records. As it stands, it is extremely difficult, if not impossible, to attempt to clear or remove anything from one's medical history to protect people, as incorrect medical histories can lead to misdiagnosis, overdoses, and other errors. However, in this case, such protections work against the victim of medical identity theft as they make it very difficult to remove mistakes and fraud.

But how do thieves steal your medical identity?

Just like other types of identity theft, criminals can gain access to medical identities in numerous ways. Some common methods are:

Stealing Insurance Cards – If a person was to take your wallet, there is a good chance they will have everything they need to file a claim or get treated for something on your dime.
Scams – Fake emails or texts posing as insurers or urging victims to click on links or do another action will oftentimes lead to their personal information being stolen.
Data Breaches – Because of how coveted medical identities are, hackers often target hospitals to gain access to millions of patient records to sell off.
Malpractice – As is the case with humans, malpractice will always be present. Corrupt doctors and medical staff can sell your patient data with ease.

So, what are the warning signs of Medical Identity Theft?

When found quickly, before insurance companies or any organizations come to the victim, medical identity theft can easily be fixed in the early stages. Here are the most common red flags:

Unexpected bills for services/medicines you never got.
Insurance denies coverage, saying you have maxed-out benefits when you haven't received anything.
Errors in medical records, such as wrong medications and diagnoses and statistics like a different blood type.
Collectors come to you for things you have never received or used.
Being able to identify these minute changes can help victims take back control of their lives.

The Devastating Consequences

Imagine this: you have just had major surgery and need pain medication. However, a drug addict stole your medical information, which led to your records listing a narcotics addiction. This can mean that you do not receive the pain relievers you need on account of you supposedly being an addict.

What if you need a blood transfusion for a medical emergency but you have someone else's blood type on your medical history? This could lead to you dying due to being given the wrong blood type. Other cases like this can lead to misdiagnosis which will be very difficult to deal with.

Financially, imagine getting into an accident and being left with hundreds of thousands of dollars in bills because your benefits were maxed out by someone else. This can lead to you being put into crippling debt, which would be very difficult to get out of. Unpaid fraudulent bills can also tank credit scores, which stops you from pursuing goals such as getting a car or a house.

“ID theft turned my world upside down. I was at risk of losing custody of my four children, and it took years to clear my name and fix my medical records.”

Beyond it being exhausting to deal with such problems, the emotional fallout will never leave victims. Take Anndorie Cromar and her experience with medical identity theft. A pregnant, drug-addicted woman used Cromar's medical identity to pay for maternity care in a hospital in Utah. Officials from child protective services assumed the newborn-who was born with drugs in her system-was Cromar's baby like the medical history suggested. This led to Cromar being threatened to have her children taken away from her. While Cromar proved her innocence with a DNA test, fixing her medical reports took a long time.

Examples like Cromar's experience ultimately show how the consequences of medical identity fraud and theft are unimaginable and far worse than most people expect.

How to Prevent Medical Identity Theft

Aside from taking a passive approach and keeping your eye on any bills that you may receive, taking preventative, or active measures can stop such problems from happening in the first place.

Here are some steps people can take:

Guard Your Insurance Cards and Medical Documents: Treat your insurance card like a credit card. Don’t leave it in your wallet unless necessary, and never share photos of it online.
Monitor Your Explanation of Benefits (EOBs): Regularly check your EOBs and medical bills for any unfamiliar charges or services.
Secure Your Online Accounts: Use strong, unique passwords for medical portals and enable two-factor authentication whenever possible.
Shred Sensitive Documents: Don’t just throw away medical paperwork-shred anything with personal or medical information before disposing of it.
Be Wary of Unsolicited Requests: Don’t give out your Social Security number or insurance details to anyone unless you’re sure of their identity and necessity.
Check Your Medical Records Annually: Request a copy of your medical records from your providers to ensure accuracy and spot any unfamiliar entries.
Freeze Your Credit: Consider a credit freeze to prevent new accounts from being opened in your name.

What to Do If You’re a Victim

If you suspect you’ve become a victim of medical identity theft, act quickly:

Contact Your Insurance Company and Medical Providers: Report the fraud and ask for your records to be flagged and corrected.
File a Police Report: Insurance companies often require this to start an investigation.
Report to the Federal Trade Commission (FTC): File a complaint at IdentityTheft.gov.
Monitor Your Credit Reports: Place a fraud alert or freeze on your credit to prevent further damage.
Document Everything: Keep records of all correspondence and steps taken.

Final Thoughts

Medical identity theft is a serious threat that can ruin finances, corrupt medical records, and even endanger lives. The best ways to protect yourself are to stay vigilant, monitor your records, and take proactive steps. If you ever notice something amiss, don’t wait; instead, take action immediately to minimize the damage.

Citations

Andrews, Michelle. “Someone Could Steal Your Medical Records and Bill You for Their Care.” NPR, NPR, 26 July 2023, www.npr.org/sections/health-shots/2023/07/26/1189831369/medical-identity-fraud-protect-yourself.

Bartolo, Roma Shaira. “Roma Shaira Bartolo.” My Data Removal, 12 Aug. 2024, www.mydataremoval.com/blog/what-is-medical-identity-theft-a-comprehensive-guide-prevention-tips/.

Konstantinovsky, Alex. “The Rise of Medical Identity Theft.” Interbit Data, 14 June 2019, interbitdata.com/the-rise-of-medical-identity-theft/.

Staff, BCP, and Gema de las Heras. “What to Know about Medical Identity Theft.” Consumer Advice, 26 Nov. 2024, consumer.ftc.gov/articles/what-know-about-medical-identity-theft.

Victims of Identity Theft, 2021 - Bureau of Justice Statistics, bjs.ojp.gov/document/vit21.pdf.

About Hemvardhan Bollamereddy

I'm a highly motivated high school student at Cypress Bay with a strong passion for engineering and software development. Despite my age, I bring extensive technical skills and hands-on experience, and I'm eager to contribute to meaningful projects while gaining industry exposure. I aim to pursue dual engineering and computer science studies, as both fields are deeply satisfying. I'm committed to creating impactful solutions and am enthusiastic about learning from industry professionals.