LifeLock Blog

The Federal Trade Commission has rejected the request to exempt physicians and other health care professionals from the FTC Red Flag, identity theft prevention, laws. It seems the U.S. District Court for the District of Columbia found that the FTC exceeded its authority in enforcing it’s Red Flag laws against attorneys and layers. So I guess the AMA, American Medical Association, thought they would take a stab at trying to get themselves exempt as well. Their first attempt has been rejected.

This does not come as a surprise, the FTC is still trying to appeal the decision brought by the American bar Assn, so it doesn’t makes sense that they would just let the medical professionals off the hook. I understand that these businesses don’t want to implement identity theft programs, like the rules regulate, but it would be for the benefit of their customers.

The Red Flags laws have been delayed several times and it seems that they could be delayed much longer if the lawsuits don’t clear up. It seems the AMA is trying to prevent the FTC from enforcing the regulations until the ABA litigation is resolved. Who knows how long that could take?

I think the Red Flag laws are a good thing and bring some responsibility to creditors. If they are going to lend people money be it a banks, medical, or lawyers they should take the time to unsure they are charging the right person. I think the the Red Flag laws will be most helpful in the medical field due to the large number of medical identity thefts that happen.



In an article written by the Wall Street Journal medical identity theft is on the rise. They blame the recession among other things for the increase. It only makes since that when people don’t have money and need medical attention and can’t pay for it people will turn to identity theft to solve their problems.

The article makes an example of a Weston, Fl clerk that sold 1,100 Medicare patients’ information through his cousin and made $2.8 Million on the operation. With medical institutions turning to electronic means of storing records this may cause an increase in medical identity theft. Though storing records electronically is beneficial and allows for easy access it also allows easy access to criminals as well. Stealing 1,100 records before computers would have requires boxes and a hand truck, which might of spark suspicion.

Medical identity theft is scary not just because people can run bills up in your name, but also because they can screw up your medical history. Medical-files that commingle between hospitals can hold incorrect information about you, your blood type, and allergies. This could cause detrimental mistakes when it comes to treating you for your medical emergencies.

It’s always a good idea to monitor your credit and your medical records. Check your credit report several times a year for fraud. When you go to the doctor request your medical records so if there ever were any discrepancies you would have the documentation to have your records corrected.

Health care related businesses have only two more days to prepare a data breach notification plan. A new rule requiring that health care providers, insurers and clearinghouses must notify individuals whose information has been inappropriately accessed goes into effect September 23.

Additionally, the data breach notification rule applies to any business associates of any entity covered by HIPAA.

The notification is to be made “as soon as reasonably possible,” but in most cases within 60 days of discovery. An exception to this provision is made if law enforcement requests a delay, a common occurrence when an investigation is ongoing, particularly if the breach appears to affect a large number of people or is part of a larger scam.

However, even if notification takes place within 60 days, but the Department of Health and Human Services (HHS) could determine the covered entity failed to meat the provision if notification could have been made sooner.

If the breach involves 500 or more people, HHS and the media have to be notified. All other smaller breaches should be reported annually.

Another exception to the rule is encrypted or destroyed information. If a hacker breaks into a server or database that the health care entity has taken measures to adequately protect, the entity is off the hook and doesn’t have to make any notification.

Data breach is defined as “the acquisition, access, use or disclosure of protected health information in a manner not permitted (by the HIPAA Privacy Rule) that compromises the security or privacy of the protected health information” or that means a “significant risk of financial, reputational or other harm to the individual.”

The rule is part of an alphabet soup of new legislation. It applies to any entity covered by the Health Insurance Portability and Accountability Act (HIPAA), and is part of the new Health Information Technology for Economic and Clinical Health (HITECH) Act, which is part of the American Recovery and Reinvestment Act of 2009 (ARRA).

Identity theft is a horrible thing. No one wants to deal with pain and anguish that an identity theft can cause. An identity theft can completely ruin your credit to the point you can’t get a credit card, ascertain a loan, or anything else that may require a credit check. Many apartment communities require a credit check to ensure you will pay your rent. If someone has stolen your identity then you may not be able to find a place to live.

This is when identity theft can really take hold of your life, when it prevents you from living your life the way you want to it becomes a huge strain on you. Some people forget that your identity is more than just your credit. When someone has the ability to become you on paper they can cause damage up and beyond your credit score.

If someone commits a crime using your identity then you could be held responsible until you are able to convince the police you are not a criminal. I have read stories of people being put in jail for several days because someone stole their identity and committed crimes with it. This is not something you want on your record. If something like this were to happen to you, one would have to clean up not only their credit but also your crime rap sheet.

Medical identity theft is something that is becoming more and more popular. People who don’t have insurance or illegal immigrants have been stealing identities and getting medical attention for free for years. They get the medical attention needed and you get stuck with the bill. Not only that but if the identity theft lives near you, your medical record may get mixed with theirs which can cause confusion. What if your allergic to something the thief is not? Or what if you have different blood types? This could cause serious problems when you are in need the most. Medical institutions do their best to prevent this kind of mix-up but no system is perfect.

Protecting your identity is key to preventing these situations from happening. Keep a good eye on your credit score and catch problems as they occur and solve them before they get worse. Remember by protecting your identity you are also protecting your future.

The Identity Theft Resource Center released their sixth annual retrospective report on ID theft this week, “Identity Theft: The Aftermath 2008.”

This year’s report provides a lot of pertinent information lacking in previous years’ reporting. For instance, this year’s report broke 0ut subcategories for loans taken out by identity thieves, revealing that the most common type of loan taken out was mortgages or second mortgages (33%).

This most recent report also provides new information about medical identity theft and how victims discovered the theft. In nearly all cases, victims discovered the thefts when they received bills or calls from bill collectors for medical services they never received. More alarming, though, is that 33% discovered the crime when they found out there was someone else’s medical information in their records.

The Identity Theft Resource Center (ITRC) estimated last year that in every schoolroom there is at least one child victim of identity theft. Sadly, the crime probably won’t be discovered for many years, and the younger the victim, the longer the crime will go undetected, which explains why 17% of child identity theft crimes begin before the victim is even a year old. The perpetrators of child identity theft are most often children’s parents, stepparents or other family members.

In light of the new information in the ITRC report, you owe it to yourself and your family to learn more about how LifeLock protects their members. Visit LifeLock.com for more information. When you’re ready to enroll, use the LifeLock promo code DEFENSE and to get the absolute lowest price available.

Medical identity theft: The crime that may kill you

Identity theft in any form can be devastating. But, medical ID theft is the most damaging and dangerous of all.

Most of the 250,000 people who fell victim to medical identity theft in 2006 usually learned they were victims just like others; for most people it’s when the bills come rolling in and the debt collectors start calling that people find out someone else is using their identity. The big difference is who’s doing the billing, and what they’re billing for.

The cases are shocking. There’s the one where a woman was billed for having her foot amputated, for instance. Or the one where a man’s insurance company rejected his claim for medical bills associated with his appendectomy. That’s a surgery they’ll only pay for once.

Besides the financial toll—and more dangerous—are the medical risks that come with the crime. When someone else uses your identity to receive medical care, his or her information becomes part of your medical record. Receiving the wrong blood type can kill you. Being given a drug you’re allergic to can kill you. Being refused medical treatment altogether because your medical benefits have reached the cap can kill you, too. (more…)