By Michelle Andrews U.S. News and World Report
If identity thieves were to disregard your financial accounts and instead target your medical information, your first thought might well be, "Take my medical identity. Please." What nut would want your high cholesterol, trick knee and family history of Alzheimer's? The answer is simple: One without health insurance who needs surgery or prescription drugs, or someone who sees a medical ID as the open sesame that will allow him or her to collect millions in false medical claims.
Untangling the mess is hard. Unlike financial identity theft, there's no straightforward process for challenging false medical claims or correcting inaccurate medical records. Medical identity theft currently accounts for just 3 percent of identity theft crimes, or 249,000 of the estimated 8.3 million people who had their identities lifted in 2005, according to the Federal Trade Commission. But as the push toward electronic medical records gains momentum, privacy experts worry those numbers may grow substantially.
Microsoft, Revolution Health and Google have announced they're developing services that will allow consumers to store their health information online. Consumers may not even know their records have been compromised.
In February, Democratic Reps. Ed Markey of Massachusetts and Rahm Emanuel of Illinois, with support from several privacy groups and Microsoft, introduced a bill that would strengthen safeguards protecting access to consumers' medical information and make it a federal requirement to notify patients if their health care data get exposed.
Brandon Reagin didn't realize someone had snatched his medical identity until his mother called to tell him he was the lead suspect in a car theft in South Carolina in 2005. The 22-year-old Marine had lost his wallet more than a year earlier while celebrating with friends after completing boot camp at Parris Island, near Beaufort, S.C. After his training, he was posted to California. But in South Carolina, Reagin lived on, as an impostor used his military ID and driver's license to not only test-drive new cars and then steal them but also to visit hospitals on several occasions to treat kidney stones and an injured hand, running up nearly $20,000 in medical charges. Reagin found out about the unpaid hospital bills when he asked for a credit report following the car theft. Reagin got nowhere with local police, but with the help of a state senator, he finally connected with the U.S. attorney's office in South Carolina. Staff there notified the Secret Service, and Reagin's doppelganger, a 30-something guy named Arthur Watts from a tiny Midlands town called Blythewood, was eventually arrested. Watts pleaded guilty to identity theft and is awaiting sentencing.
But there's another potential problem: The hospitals Watts used may have medical records in Reagin's name for treatment he never received. And if those medical records someday become electronically linked to one big nationwide health information network, as envisioned by the Bush administration, some privacy experts worry it may be impossible to find and correct the errors once they percolate through the vast interconnected system.
Victims of financial identity theft have a much clearer path to recovery than those whose medical identities are stolen. If someone swipes your wallet and goes on a spending spree, you can ask any of the three major credit bureaus for a free credit report, place a fraud alert on your account and get inaccurate charges expunged. With medical identity theft, it's not that simple. In the first place, your records are most likely scattered among many different providers, and there's no medical records clearinghouse that keeps them.
Ultimately, no matter how sophisticated the technology or diligent the health care provider, patients themselves may be the best first line of defense against medical identity theft.
"Most of the time, these problems are consumer reported," says Byron Hollis, managing director of the national antifraud department for the Blue Cross Blue Shield Association. "They know what procedures they did or didn't receive."
Been breached? If you know, or even suspect, that your medical identity has been stolen, take these steps now:
• Get a copy of your medical records from health care providers and review them to make sure they're consistent with treatment you've received.
• Ask your insurer for copies of all "Explanation of Benefits" statements for the past year. (You may be able to get them online.) Review these for accuracy, too.
• Get a free copy of your credit report from one of the three credit bureaus. (Through AnnualCreditReport.com, you can obtain a free report once a year from each of the three companies.) Sometimes collection notices for unpaid bills alert victims to theft.
• File a police report if you're a victim. It may encourage providers and your insurer to correct your records promptly.
Monday, March 24, 2008
Saturday, March 22, 2008
Identity Theft Still Going Strong in the U.S.
Identity theft continues to be a major problem in the United States. The FTC recently released a list of the top consumer fraud complaints in 2007, and identity theft is still the number one consumer complaint for the eighth consecutive year thanks to the 258,427 complaints filed last year. Identity theft occurs when someone uses your personal information, such as Social Security number or credit card without your permission to commit fraud or other crimes, according to the FTC Identity Theft website.
Fraudsters will use stolen information to obtain a credit card, rent an apartment, purchase goods online, and even withdraw money from a bank account, and sadly, you won't find out about the crime until it's too late. The worst part is that identity theft victims are left to clean up the mess alone, which can sometimes take months, even years depending on the damage.
How did they get my information?
There are plenty of sites (including this one) that frequently warn the public against the different types of phishing scams. Clever thieves will stop at nothing to get account information electronically, or physically by stealing a victim's mail. But sometimes, no matter what you do to protect yourself, the reality is the integrity of your identity relies on the security measures taken by merchants you deal with.
Sophisticated identity theft rings aren't wasting their time with petty phishing scams, they're going after the big guys. Their targets are now retailers, banks, schools, government agencies, and other companies with data banks that host millions of credit card and debit card numbers, as well as identity records. How scammers acquire this information varies, but we've all heard of the occasional missing laptop or retail hack job that compromised millions of account numbers.
What's infuriating, as Bob Sullivan points out, is that card associations like Visa and MasterCard are the first to notice when a large block of account numbers are stolen, yet for whatever reason, they won't reveal the name of the compromised retailer to banks or the public immediately. This means it may take months before a victim realizes their account information has been stolen, which gives identity thieves plenty of time to do more damage.
Fed up with the lack of identity theft reporting by lending institutions, Chris Hoofnagle, a researcher at the University of California at Berkeley, conducted a study that reveals which institutions had the most identity theft incidents. After analyzing over 88,000 complaints submitted to the FTC over a three month period, Hoofnagle found that Bank of America, AT&T, and Sprint had the highest number of identity theft complaints, while Macy's Comcast, and DirectTV had the least number of incidents. He admits the study is not perfect, but it's a good first attempt at getting lenders to disclose more information that would help consumers choose safer institutions.
What can I do to protect myself?
Research like Hoofnagle's could greatly benefit consumers, because it would give us a better idea of who to deal with in the future. Until then, I recommend you take a few safety measures of your own to protect your identity. Here are a few tips:
Fraudsters will use stolen information to obtain a credit card, rent an apartment, purchase goods online, and even withdraw money from a bank account, and sadly, you won't find out about the crime until it's too late. The worst part is that identity theft victims are left to clean up the mess alone, which can sometimes take months, even years depending on the damage.
How did they get my information?
There are plenty of sites (including this one) that frequently warn the public against the different types of phishing scams. Clever thieves will stop at nothing to get account information electronically, or physically by stealing a victim's mail. But sometimes, no matter what you do to protect yourself, the reality is the integrity of your identity relies on the security measures taken by merchants you deal with.
Sophisticated identity theft rings aren't wasting their time with petty phishing scams, they're going after the big guys. Their targets are now retailers, banks, schools, government agencies, and other companies with data banks that host millions of credit card and debit card numbers, as well as identity records. How scammers acquire this information varies, but we've all heard of the occasional missing laptop or retail hack job that compromised millions of account numbers.
What's infuriating, as Bob Sullivan points out, is that card associations like Visa and MasterCard are the first to notice when a large block of account numbers are stolen, yet for whatever reason, they won't reveal the name of the compromised retailer to banks or the public immediately. This means it may take months before a victim realizes their account information has been stolen, which gives identity thieves plenty of time to do more damage.
Fed up with the lack of identity theft reporting by lending institutions, Chris Hoofnagle, a researcher at the University of California at Berkeley, conducted a study that reveals which institutions had the most identity theft incidents. After analyzing over 88,000 complaints submitted to the FTC over a three month period, Hoofnagle found that Bank of America, AT&T, and Sprint had the highest number of identity theft complaints, while Macy's Comcast, and DirectTV had the least number of incidents. He admits the study is not perfect, but it's a good first attempt at getting lenders to disclose more information that would help consumers choose safer institutions.
What can I do to protect myself?
Research like Hoofnagle's could greatly benefit consumers, because it would give us a better idea of who to deal with in the future. Until then, I recommend you take a few safety measures of your own to protect your identity. Here are a few tips:
Buy a shredder, and shred any junk mail that has your name on it before you throw it away. Keep a lock on your mailbox if you can, or get a P.O. box. You might also want to take your name off any junk mailing list.
The best thing to do is to monitor you bank and credit card transactions regularly. Some banks offer daily alerts that notify you every time a transaction was made over a certain dollar amount.
Request a copy of your credit report semi-annually or annually if you can.
It's important for all victims of identity theft to report any discrepancies immediately after they happen to minimize the damage.
Always use your home computer when conducting online transactions.
Wednesday, March 19, 2008
Woman, 79, Sentenced for Social Security Fraud
**From The Honolulu Advertiser, March 18, 2008**
A tax auditor who pleaded guilty to Social Security and theft offenses was sentenced Monday in Honolulu by a federal judge to five years probation, six months home detention, and ordered to make restitution of $46,000.
Seventy-nine-year-old Patricia "Pat" Pendleton, also known as Patricia Blackburn and Patricia Uehara, set up two different identities and Social Security numbers in order to receive pensions resulting in an overpayment of about $50,000 between 2002 and 2006, according to the U.S. attorney's office for Hawai'i. Pendleton was paid widowers benefits from her marriage to a deceased former wage contributor to the social security system that were electronically deposited into a bank account. She also received benefits under a fictitious name and falsely acquired Social Security number based on her own wage earner contributions that were electronically deposited into an account at another bank.
The Social Security Administration discovered the fraud in an investigation targeting beneficiaries receiving multiple benefits under fake identities and/or multiple Social Security numbers.
Pendleton, a former tax auditor for the state of Hawai'i and private industry here, started using a fraudulent identity and falsely acquired Social Security number in the 1960s and began collecting benefits in the late 1980s and early 1990s while she was in her 60s. Pendleton, who was indicted by a federal grand jury in August 2007, was sentenced by Chief District Judge Helen Gillmor.
Monday, March 10, 2008
What is Identity Theft?
Identity theft occurs when someone uses your personally identifying information, like your name, Social Security number, or credit card number, without your permission, to commit fraud or other crimes.
The FTC estimates that as many as 9 million Americans have their identities stolen each year. In fact, you or someone you know may have experienced some form of identity theft. The crime takes many forms. Identity thieves may rent an apartment, obtain a credit card, or establish a telephone account in your name. You may not find out about the theft until you review your credit report or a credit card statement and notice charges you didn’t make—or until you’re contacted by a debt collector.
Identity theft is serious. While some identity theft victims can resolve their problems quickly, others spend hundreds of dollars and many days repairing damage to their good name and credit record. Some consumers victimized by identity theft may lose out on job opportunities, or be denied loans for education, housing or cars because of negative information on their credit reports. In rare cases, they may even be arrested for crimes they did not commit.
How long can the effects of identity theft last?
It's difficult to predict how long the effects of identity theft may linger. That's because it depends on many factors including the type of theft, whether the thief sold or passed your information on to other thieves, whether the thief is caught, and problems related to correcting your credit report.
Victims of identity theft should monitor financial records for several months after they discover the crime. Victims should review their credit reports once every three months in the first year of the theft, and once a year thereafter. Stay alert for other signs of identity theft.
Don't delay in correcting your records and contacting all companies that opened fraudulent accounts. Make the initial contact by phone, even though you will normally need to follow up in writing. The longer the inaccurate information goes uncorrected, the longer it will take to resolve the problem.
What can you do to help fight identity theft?
A great deal. Awareness is an effective weapon against many forms identity theft. Be aware of how information is stolen and what you can do to protect yours, monitor your personal information to uncover any problems quickly, and know what to do when you suspect your identity has been stolen.
Armed with the knowledge of how to protect yourself and take action, you can make identity thieves' jobs much more difficult. You can also help fight identity theft by educating your friends, family, and members of your community.
The FTC estimates that as many as 9 million Americans have their identities stolen each year. In fact, you or someone you know may have experienced some form of identity theft. The crime takes many forms. Identity thieves may rent an apartment, obtain a credit card, or establish a telephone account in your name. You may not find out about the theft until you review your credit report or a credit card statement and notice charges you didn’t make—or until you’re contacted by a debt collector.
Identity theft is serious. While some identity theft victims can resolve their problems quickly, others spend hundreds of dollars and many days repairing damage to their good name and credit record. Some consumers victimized by identity theft may lose out on job opportunities, or be denied loans for education, housing or cars because of negative information on their credit reports. In rare cases, they may even be arrested for crimes they did not commit.
How long can the effects of identity theft last?
It's difficult to predict how long the effects of identity theft may linger. That's because it depends on many factors including the type of theft, whether the thief sold or passed your information on to other thieves, whether the thief is caught, and problems related to correcting your credit report.
Victims of identity theft should monitor financial records for several months after they discover the crime. Victims should review their credit reports once every three months in the first year of the theft, and once a year thereafter. Stay alert for other signs of identity theft.
Don't delay in correcting your records and contacting all companies that opened fraudulent accounts. Make the initial contact by phone, even though you will normally need to follow up in writing. The longer the inaccurate information goes uncorrected, the longer it will take to resolve the problem.
What can you do to help fight identity theft?
A great deal. Awareness is an effective weapon against many forms identity theft. Be aware of how information is stolen and what you can do to protect yours, monitor your personal information to uncover any problems quickly, and know what to do when you suspect your identity has been stolen.
Armed with the knowledge of how to protect yourself and take action, you can make identity thieves' jobs much more difficult. You can also help fight identity theft by educating your friends, family, and members of your community.
Sunday, March 9, 2008
Get Educated and Protected!
Aloha everyone. As the old saying goes, "The best defense is a good
offense." Make sure you are up to speed with the threats of identity theft. Be
aware that we are all very vulnerable to this menacing crime. You must realize
that only about 25% of identity theft is financial. What about medical
identity theft? Character identity theft? Social security number identity theft?
Drivers license identity theft? This is a serious and growing epidemic that is
not going away. What is the solution? Here is a list of things you should
do:
offense." Make sure you are up to speed with the threats of identity theft. Be
aware that we are all very vulnerable to this menacing crime. You must realize
that only about 25% of identity theft is financial. What about medical
identity theft? Character identity theft? Social security number identity theft?
Drivers license identity theft? This is a serious and growing epidemic that is
not going away. What is the solution? Here is a list of things you should
do:
- Protect your personal information
- Check your credit report and score
- Subscribe to a credible credit monitoring service
If you have any questions, feel free to contact me at (808) 245-3539 or visit our website at www.mplss.com.
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