Cyber attacks on health insurers pose risks beyond financial ones

The cyber attack on Mountlake Terrace-based health insurer Premera Blue Cross exposed not just the personal and financial information of 11 million people, but also claims histories and clinical information as well.

Data breaches are differentiated by more than just size. The kinds of information that are released matters as much — if not more — than the amount. While Premera’s breach involved fewer individuals than the 80 million exposed earlier at Anthem, this latest incident included some of the most personal and closely held information an insurance company can possess.

Virtually all data breaches put consumers at risk for some version of identity theft, which can lead to bank account fraud, credit card fraud, tax fraud and other financial impacts. But breaches involving medical identity information can truly put your life or health at risk.

For Premera’s victims, the major risk now is medical identity theft. This can happen a number of different ways, but the two most common are:

Someone uses your medical identity to obtain medical goods, services and prescriptions pretending to be you, or

An individual (often involved in organized crime) uses your medical identity to bill your insurance, Medicare or Medicaid for medical goods, services and prescriptions without your knowledge.

Just last week, an Oregon man pleaded guilty to using a false identity at Providence Willamette Falls Medical Center to receive free surgery. Far from being a victimless crime, this type of fraud can cause huge problems for the impersonated victim the next time they go to a doctor or emergency room.

The provider will start by pulling up an electronic health record that now includes services provided to someone who wasn’t actually the patient. Their preexisting conditions, allergies, drug interactions — possibly even their blood type — may be wrong or conflicting. In the future, that could lead to a misdiagnosis based on a condition you don’t have, a prescription mistake with a medication to which you’re allergic, and other dangerous or inappropriate medical treatment. It is not an exaggeration to say that medical identity fraud can literally kill you.

For the 11 million victims of this breach, Premera says it will provide two years of free credit monitoring. Unfortunately, these services don’t go beyond financial accounts to provide visibility into consumers’ actual health care transactions and medical identity.

A study released earlier this year by the Medical Industry Fraud Alliance showed medical identity theft to be the fastest-growing identity crime in the country, affecting more than 2.3 million Americans. In the five years MIFA has been studying the issue, the occurrence of medical identity theft incidents has doubled, while the number of victims having to pay out-of-pocket costs rose significantly as well.

It’s time consumers and policymakers demand solutions that actually protect victims from the worst consequences of fraud that go far beyond financial misfortune.

Bob Gregg is CEO of ID Experts, whose business helps companies and consumers recover from data breaches and identity fraud.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Opinion

toon
Editorial cartoons for Thursday, March 28

A sketchy look at the news of the day.… Continue reading

Initiative promoter Tim Eyman takes a selfie photo before the start of a session of Thurston County Superior Court, Wednesday, Feb. 10, 2021, in Olympia, Wash. Eyman, who ran initiative campaigns across Washington for decades, will no longer be allowed to have any financial control over political committees, under a ruling from Superior Court Judge James Dixon Wednesday that blasted Eyman for using donor's contributions to line his own pocket. Eyman was also told to pay more than $2.5 million in penalties. (AP Photo/Ted S. Warren)
Editorial: Initiative fee increase protects process, taxpayers

Bumped up to $156 from $5, the increase may discourage attempts to game the initiative process.

Protecting forests and prevent another landslide like Oso

Thank you for the powerful and heartbreaking article about the Oso landslide… Continue reading

Boeing’s downfall started when engineers demoted

Boeing used to be run by engineers who made money to build… Continue reading

Learn swimming safety to protect kids at beach, pool

Don’t forget to dive into water safety before hitting the pool or… Continue reading

Comment: Why shootings have decreased but gun deaths haven’t

High-capacity magazines and ‘Glock switches’ that allow automatic fire have increased lethality.

Washington state senators and representatives along with Governor Inslee and FTA Administrator Nuria Fernandez break ground at the Swift Orange Line on Tuesday, April 19, 2022 in Lynnwood, Washington. (Olivia Vanni / The Herald)
Editorial: Community Transit making most of Link’s arrival

The Lynnwood light rail station will allow the transit agency to improve routes and frequency of buses.

toon
Editorial cartoons for Wednesday, March 27

A sketchy look at the news of the day.… Continue reading

An image of Everett Mayor Cassie Franklin is reflected in a storefront window during the State of the City Address on Thursday, March 21, 2024, at thee Everett Mall in Everett, Washington. (Ryan Berry / The Herald)
Editorial: State of city address makes case for Everett’s future

Mayor Franklin outlines challenges and responses as the city approaches significant decisions.

FILE - The massive mudslide that killed 43 people in the community of Oso, Wash., is viewed from the air on March 24, 2014. (AP Photo/Ted S. Warren, File)
Editorial: Mapping landslide risks honors those lost in Oso

Efforts continue in the state to map areas prone to landslides and prevent losses of life and property.

Burke: ‘Why not write about Biden, for once?’ Don’t mind if I do.

They asked; I’ll oblige. Let’s consider what the president has accomplished since the 2020 election.

Comment: Catherine missed chance to dispel shame of cancer

She wasn’t obligated to do so, but she might have used her diagnosis to educate a sympathetic public.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.