Anthem recently announced that the personal information of 80 million insured individuals had been compromised. The cyber thieves have both financial and medical identification data. Whether you are impacted by this incident or not, you should assume your personal information is not secure. What should you do to protect yourself?
Hackers have been successful in stealing data from Anthem, Target, Home Depot, and other businesses over the last year. Anthem is the latest victim, but this enterprise won’t be the last. How do you protect yourself and what is the impact of your medical ID falling into the wrong hands?
Anthem Hack: What We Know
Anthem has yet to reveal how the breach occurred, but they have been quick to alert their insured to potential threats, starting with fraudulent emails and phone calls from people pretending to be Anthem representatives. Anthem has stated they will not be contacting anyone impacted by phone or email, but rather only by mail through the U.S. Postal Service. If you are an Anthem customer, you will receive an offer of free credit monitoring and ID protection for two years. When the letter arrives, seriously consider enrolling for the free services. This will at least provide protection for your financial information. Your medical information is another matter. Medical ID Theft
Your medical insurance information is estimated to be ten times more valuable to a hacker than your financial information. When used fraudulently, medical information can reap $20,000 per record versus $2,000 for financial information. There are at least three ways your medical identification can be used by criminals:- Fake medical cards may be created with your plan number and employer information. These cards could potentially be used fraudulently by others to secure medical services and prescriptions on your plan.
- Fake clinics may use the information to request reimbursement for medical services that you never received.
- Prescriptions drugs may be purchased and resold on the street.
Initially, it may appear that only the insurance company will bear the financial burden due to the fraudulent claims that will be paid. This is not the case. When the cost of the insurance company goes up, premium increases generally follow.
In addition to higher premiums, your medical card may be rejected for lack of payment. If the deductible amount and co-pays that were created by the fraudulent services are outstanding, your access may be denied and you will be required to pay out-of-pocket for your services. Eventually this will be resolved, but it may take time to do so.
Another consequence: Every time your medical insurance is used, the services and prescriptions are recorded on your medical record. This could cause a life-threatening situation for you. If you are unconscious in an emergency room and the doctor pulls up your electronic medical records, pre-existing conditions, medications used, and allergies are just an example of the erroneous information that could be included. Bad information can easily result in an incorrect diagnosis and procedure.
What Can You Do?
Medical monitoring is not as available or advanced as financial monitoring. You may have experienced your credit card company calling or texting when they suspect a fraudulent charge has been made with your card. Until insurance companies begin to contact their insureds when something unusual or uncharacteristic is presented for payment, you must be vigilant. Examine carefully your Explanation of Benefits that is mailed to you each time a claim has been received and processed by the insurance company. Any inaccuracies that you notice should be reported immediately. Regarding your financial information, you can have your credit reports frozen. This will prevent anyone from securing a credit card, new loan, or even renting an apartment or purchasing a cell phone using your identity. It is recommended that you go to the websites of each of the three credit bureaus (TransUnion, Experian, and Equifax) and follow their process for locking your reports. The downside to this strategy is that you will need to unlock your credit reports when you need a financial institution or others to have access. This can be done easily through the bureaus websites, but it does require time. While there can be a fee associated with locking your credit report, for Indiana residences, this is a free service.
Summary
Our advice: Assume your personal medical and financial information is not secure. Do what you can to decrease access to your information, but always remain vigilant. Review your bank and credit card statements as well as your medical charges carefully and report any incorrect transactions immediately. Recommended Articles
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