Medical identity theft is an alarming and often undetected offense
affecting today’s consumers, according to a recent survey conducted by
The Ponemon Institute and sponsored by ProtectMyID.com™,
Experian’s multilayered identity theft detection, protection and fraud
resolution product. According to the study, nearly 1.5 million Americans
have been victims of medical identity theft. For many, the
notion of identity theft is both upsetting and daunting, but few
individuals realize the specific severity and potential repercussions of
medical identity fraud. It is estimated that the costs associated with
this type of theft total about $28.6 billion — or approximately $20,000
per victim. Not only is resolution of medical fraud an
especially arduous endeavor, but the difficulty of recognition and the
potential associated costs also make it particularly dangerous.
“We are proud to
sponsor this groundbreaking study because when people are informed, we
find that they are empowered to take steps to protect all their valuable
information.”
“We are pleased to work with Experian’s ProtectMyID.com for this
first-of-its-kind study,” said Dr. Larry Ponemon, chairman and founder
of Ponemon Institute. “This is the first empirical study that attempts
to measure the size and scope of the medical identity theft, and our
results underscore the importance of informing the public why the
protection of their medical records is of the utmost importance. This
study confirms that there is not only a significant financial impact to
medical identity theft, but that there is a very real danger of
erroneous diagnosis and treatment because of medical records that
contain false information. All this adds up to the need for urgency on
the part of consumers to self-educate and take the proper steps to
ensure the integrity of their medical identity.”
One of the most common instances of medical identity theft is the use of
a stolen insurance ID card in order to receive medical services. The
main problem in combating the theft is the time it takes to recognize
that it has occurred. According to the study, more than 50 percent of
consumers didn’t discover that they had been victimized until at least a
year after the incident or incidents had occurred. Only 6 percent
received a timely notification that their medical records had been
breached. These unsettling figures indicate that a significant number of
consumers are currently and unknowingly being targeted by medical
identity thieves.
Adding to the number of those affected are the individuals who choose
not to report wrongdoings to the authorities. In fact, 46 percent of
respondents elected not to report incidents to law enforcement officials
or other legal authorities. Within this group, the predominant reasoning
for withholding such information is even more surprising: 49 percent of
those surveyed said that they were close to the thief and did not wish
to subject him or her to legal trouble. With so many unreported cases of
medical identity theft, it is clear that the reach of such fraud goes
far beyond the total number of documented incidents.
“The difficulty in detecting medical identity theft makes it a
particularly dangerous form of fraud,” said Jennifer Leuer, general
manager of ProtectMyID.com. “Arming yourself with the tools provided by
a fraud protection product such as ProtectMyID.com can prove invaluable
in early detection and resolution, especially knowing that if something
does happen you won’t be alone in getting the matter resolved.”
The potential consequences of medical identity theft have proved to be
extremely damaging. Forty-eight percent of respondents said they lost
their health care coverage completely, and 32 percent noted an increase
in their insurance premiums. Of those surveyed, nearly 80 percent
suffered negative ramifications as a result of the theft.