Medical Identity Theft Recurring Theme
By: J. Alan Cates

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In 2003 the Identity Theft Resource Center (www.idtheftcenter.org) released its survey of the impact of identity theft on 173 known victims. Survey findings included the fact that only 15% found out due to a proactive action by a business.

Given the scope of the problem and threat to consumer confidence, businesses should and must take proactive action. How bad is it?

In the FPI pilot, for example, each dollar of the $300,000,000 in health care fraud schemes represented illegal use of an individual’s and/or business’s identity - and included a damaging false medical need recorded in a person’s medical file. In most cases, the victim did not even know and may appear they to have lied to an employer or insurance underwriter whom they authorized to check their medical history - leading to needless denials or increased premiums.

False entries in a person’s medical record to support an equally false medical claim are a felony violation of the Federal ID Theft provisions of 18USC1028a7.

FPI’s prevention controls testing verify that tested transactions do not evidence ID theft. In the vast majority of tested transactions, all is well - but if not - the public value of this proactive effort is immeasurable.