Medical identity theft victims might receive the wrong treatment, have their insurance used up, and could even be classified as a bad risk when seeking life and medical coverage. They could also fail a medical exam for employment when diseases show up in their medical records that they never had.
While most identity theft victims can correct errors in their credit reports and place alerts or freezes to prevent further fraudulent activity, the victim of medical identity theft doesn't have the same legal rights to clear their files of bad information. In some instances, they aren't even allowed to see what is in their files. Furthermore, medical identity theft victims don't have the right to stop insurers, health care providers and medical clearinghouses from sending this information back and forth to each other.
As medical records become electronic, this poses even greater risks because the information is being transmitted to a variety of databases. Sadly enough, one of the reasons many of these databases are being created is to prevent fraud.
It is also not unheard of for dishonest people in the medical industry to steal identities to submit fraudulent claims to insurance companies and even the government. Authorities within the law enforcement community estimate we are losing $60 billion a year due to Medicare fraud, according to an article in the Washington Post.
If you are interested in learning more about this, or have been a victim of Medical Identity Theft, I recommend reading the Medical Identity Theft Information Page on the World Privacy Forum.
The World Privacy Forum plans to issue a second study on this problem later on this year.
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