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.
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.
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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:
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.
Cybercriminals use stolen healthcare records in a variety of fraudulent activities:
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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.
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.
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.
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.
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.
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.