Insurance identity theft, while technically in its won bracket, is closely linked to other forms of identity theft. It is, if you will, a melting pot of identity thieving bliss as it is not only related to other ID theft forms, but causes many problems of its own.
If other forms of your information are compromised such as a drivers license or social security card, it is possible that your insurance data may be stolen as well. This issue has come about in more recent years due to the increasing number of illegal immigrants entering and living in the United States. If these individuals choose to acquire identification, it may also come with a social security card and an insurance card; these cards may be legitimate forms of someone else's data, as those already exist they are more easily obtained.
In 2011 a Nevada D.M.V employee was arrested on charges of federal bribery for selling drivers licenses to illegal immigrants. By providing drivers licenses, this Nevada woman opened a Pandora's box of problems for all the individuals whose information was used on the fake identification cards. As stated before, this issue can lead or be linked to medical identity theft, as well as other forms of insurance.So, why would an identity thief be concerned about insurance? Simply put, medical care is one of the hottest commodities the United States currently has, which has a lot to do with why the Federal government wants control of the industry. Getting healthcare is high on most people’s priority lists, and this is true regardless of legal status. For many, using someone else’s insurance information to get medical services is the only option available. (And just to be clear, it is not exclusively illegal immigrants who do this, although that demographic is the bulk of the problem.) With that being said, please keep in mind that regardless of an individual's need to use someone else's insurance information for their own benefit, it is extremely dangerous for everyone involved. As discussed in a previous post, medical identity theft is severely dangerous. Please see Identity Theft: Stay Educated- Type & Tip 1 for details on medical identity theft.
A victim of insurance identity theft will first face fraudulent claims against their legitimate policy. Sadly, this can be overlooked until the policy has reached its “cap” – the maximum amount the policy will pay out. Then the policy is cancelled. The cancellation notice is often the first the insured hears of the problem, and then (of course) it’s too late to do anything besides argue with the insurance company. It can be “iffy” when it comes to getting the problem resolved, too. And while you’re debating with the insurance company about whether or not it is possible for you to be going to hospitals or driving in several states at the same time, you will most likely find that other insurance companies will refuse to give you coverage.
That is the specific reason insurance identity theft has earned its own category. Not being able to get insurance isn’t really a financial problem, and it isn't really medical identity theft either, because it gives the victim a whole new set of problems that may be unrelated to either of those issues, while still giving him or her plenty of headaches and worries.
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