Benefits Fraud

In today’s healthcare climate, pirated insurance benefits—using your personal information—can earn a high sale price for industrious thieves.

How does benefits fraud occur?

Identity thieves aren’t always motivated by financial gain. They instead could gain access to your medical benefits by stealing your insurance information or through employment fraud. Once they’ve successfully stolen your identity, they could then rack up medical service bills and charges, and in turn, change your medical history.

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What are the effects of benefits fraud?

If an identity thief commits benefits fraud, you could unknowingly obtain thousands of dollars in medical expenses. Often the crime goes undetected until you are in need of a legitimate medical service. This could affect your insurance, your taxes, premiums and credit. Even worse, if your medical history and details are changed— such as your blood type or allergies—you could be in physical danger.

The impact:

  • The economic impact for medical benefits fraud is $30.9 billion per year.1
1 Arevalo, Christina and Kam, Rick. “The $234 Billion World Of Medical Id Theft.”
View on Hospitals. Multiview Inc. February 13, 2012.

Federal Trade Commission. “Consumer Sentinel Network Data Book For
January – December 2011.” February 2012.

Javelin Strategy & Research. "2012 Identity Fraud Report: Social Media and Mobile Forming
the New Fraud Frontier." February 2012.

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