Digital Health Records Cause a Surge in Medical Identity Theft

An increasing number of doctors and hospitals are foregoing paper documentation for a more efficient way of keeping track of patients' health: recording vital information via digital records.

This new way of record keeping comes with an inherent risk. Hackers are eager to access Social Security numbers and payment information to manipulate patient data for medical identity theft.

Statistics show that in the last three years the health and medical sector has been the target of more hackings than any other industry, accounting for approximately 42.5 percent of total hackings.


Why the push for digital records?

The Affordable Care Act and other legislation mandated that providers digitize medical records. In addition, under the Health Information for Economic and Clinical Act, providers are given financial incentives to adopt an electronic medical record system. The government penalizes those in the health care sector who don't comply by reducing Medicare or Medicaid reimbursements.

The overall purpose of digitizing records is to create a system where medical information is shared among a variety of providers with an ease and efficiency to make data easily accessible, prevent mistakes and offer better patient care. Streamlining the process is an effort to lower costs not only for the medical sector, but for patients as well.

How does electronic data give rise to medical identity theft?

The medical sector is more vulnerable to identify theft than other industries. First, the financial industry and other retailers are developing better ways to outsmart hackers from gaining access to consumer data so thieves are turning to more vulnerable sectors. Credit card companies are now adding microchips to cards to eliminate the ease of stealing identities.

There's also is a greater premium on medical information in the black market. Hackers are paid up to $60-$70 for health insurance information. The medical sector is still trying to navigate how to protect their data because they are new to the process. Since the information is readily available and safeguards aren't always in place, it makes it easier for hackers to gain the data they need for identity theft.

What are the ways you can protect yourself?

Given the vulnerability of medical data system, it is up to you to protect your health information. Here are some ways how:

1. Review your digital records and determine if it matches up with the services you obtained. If there is information that seems unfamiliar, there is a possibility the provider could have confused your data with another patient or that a hacker has accessed your records.
2. Only offer information when it is absolutely required. If you're asked for your Social Security number or other personal data at your in-person medical visit or hospital stay, determine if it is necessary to volunteer this information and ask the individual why you need to provide it.
3. Use a monitoring service like LifeLock to help store your sensitive information and alert you to potential fraud. This service can also help you replace lost or stolen identification cards and pull your credit report to check for any erroneous or fraudulent information.
4. Beware of solicitation of free medical services via email or telephone. Don't disclose data to unknown sources because it might offer an easy avenue for identity theft to occur.
5. File your medical records in a safe place and shred those documents you don't need.