Healthcare records are a prime target for identity thieves, fetching higher prices on the black market than any other type of personal data. Beyond financial loss, stolen medical information can create lasting complications, from inaccurate patient histories to delayed or denied treatment.
Why healthcare breaches fuel most identity theft cases
According to Onclave, healthcare-related breaches are responsible for 95% of all identity theft cases, showing how deeply intertwined healthcare data is with identity fraud. Unlike financial data, which can be quickly deactivated or replaced, healthcare records provide a permanent and highly detailed snapshot of a person’s life—personal identifiers, medical histories, insurance details, and more. This permanence makes them an ideal target for long-term exploitation. Once stolen, healthcare data is difficult to reclaim and even harder to correct. Victims often endure lasting consequences such as altered medical records, denied insurance claims, and financial fraud. For healthcare providers, this reality proves the stakes of a breach: it’s not just about protecting data, it’s about safeguarding identities and preventing the long-term fallout patients face from compromised healthcare information.
Why healthcare records are a top target
- Comprehensive personal data: A healthcare record includes far more than a credit card number. It contains full names, addresses, birthdates, Social Security numbers, insurance information, and even biometric data.
- Long-term fraud potential: Stolen healthcare data can be used to open credit accounts, file fake insurance claims, or even receive medical treatment under someone else’s identity. These fraudulent activities often go unnoticed for years.
- Limited detection systems: Unlike financial institutions, healthcare providers often lack systems to detect identity theft. Patients may only find out their data has been stolen when they receive unexpected medical bills or face issues accessing their medical records.
Read more: Why is healthcare a juicy target for cybercrime?
The real-world impact on patients
The theft of healthcare data isn’t just a financial issue, it has serious consequences for patient care. Victims of medical identity theft may encounter:
- Incorrect medical records: When someone else uses your medical identity, your health records may show inaccurate diagnoses, prescriptions, or procedures, which can put your future care at risk.
- Denial of care: Patients may be denied insurance coverage or medical treatment due to fraudulent claims made in their name.
- Emotional distress: Victims of healthcare-related identity theft often experience anxiety, stress, and a loss of trust in healthcare providers.
A report by the Identity Theft Resource Center found that 40% of victims of medical identity theft had their treatment delayed or denied due to fraudulent activity in their records.
How stolen healthcare records are used
Cybercriminals use stolen healthcare records in a variety of fraudulent activities:
- Filing false insurance claims: Criminals can use stolen data to submit fake claims and pocket the payouts.
- Accessing prescription drugs: Fraudsters may use stolen identities to obtain prescription medications, which can be sold illegally.
- Opening lines of credit: Using the personal information in healthcare records, criminals can open credit cards, loans, and other financial accounts.
Read also: Your health information was hacked, what now?
The human cost of stolen healthcare records
A notable case illustrating the dangers of medical identity theft involves Deborah Ford, a retired postal worker. In 2008, Ford's personal information was stolen and used by an individual seeking prescription painkillers. The thief altered Ford's driver's license and used her stolen health insurance card to visit doctors and obtain over 1,700 opioid pills. Ford only became aware of the theft when she was contacted by a bail bondsman informing her of impending arrest charges for acquiring the drugs. This ordeal led to significant stress, financial burden, and a lengthy process to clear her name and correct her medical records.
FAQs
How can healthcare providers better detect identity theft?
Healthcare providers can start by implementing stronger login security, like multi-factor authentication, and monitoring for unusual activity, such as multiple logins from different locations. Encrypting patient data makes it harder for thieves to access it, and regular training helps staff spot phishing emails and other common tricks used to steal healthcare information.
What types of healthcare records are most valuable to identity thieves?
The most valuable records are the ones that include a mix of personal and medical details, like Social Security numbers, addresses, insurance information, and medical histories. Thieves are especially interested in specialist records, such as mental health or oncology, since that data is more sensitive and harder to replace if stolen.
Why is medical identity theft harder to fix than financial identity theft?
With financial identity theft, stolen credit cards or bank accounts can be closed or replaced. Medical identity theft is much more complicated. It can change your permanent medical records, causing issues like incorrect diagnoses or denied treatment. Fixing those errors often means reaching out to multiple providers and insurers, which can take months or even years.
How can patients protect their healthcare information?
Patients should regularly check their insurance statements and medical bills for any unfamiliar treatments or charges. If something looks off, contact your healthcare provider right away. Also, be cautious when sharing personal information. Always ask if your healthcare provider uses secure systems for storing and sending sensitive data.
How are stolen healthcare records used beyond financial fraud?
Stolen healthcare records can be used for more than just opening credit accounts. Criminals might use them to get prescription drugs, commit insurance fraud, or even blackmail someone with sensitive medical information. In some cases, stolen identities are used by people seeking medical care under a fake name, which can go unnoticed for years.
Farah Amod
