Insurance Identity Theft – How Can You Avoid It?

Insurance can be helpful in many areas of life: Medical and dental services, life, home, even cars and other important items can all be insured to help protect you against the unexpected. But do you have a backup plan in case an identity thief gets ahold of your private information and starts claiming insurance benefits under your name?

Sadly, insurance identity theft is a common reality in our technological age, and it is only becoming more common. The Federal Trade Commission stated that 2024 saw the highest number of insurance identity theft reports on record.  

If you haven’t already been hit by this crime, the chances are rising that you could become the next victim. What can you do to protect yourself from insurance identity theft? Or if it does happen to you, how can you recover? We’ve got some answers and tips to help you.

What is insurance identity theft?

Let’s start by defining insurance identity theft so that you can have a clear picture. Put simply, insurance identity theft occurs when an identity thief uses your stolen personal information to obtain a new insurance policy or use of your current policy. Once they have gained access to insurance in your name, they can receive medical services under your name, making you the unlucky recipient of any future bills that they incur.

Artificial intelligence has made it easier for identity thieves to gain access to your files. Thieves can use AI to create fake images and messages and misleading websites to trap their victims. These AI-generated tools also help thieves trick insurance companies into trusting them.

Besides potentially costing you money, insurance fraud can also raise your premiums and damage your insurance records and claims history. It can even cause the insurance company to cancel your plan with them if they believe you are responsible for these costly charges. It could take weeks, months, or longer for you to clean up the wreckage and reclaim your good standing with insurance companies after an identity thief has taken advantage of your policies.

How can you avoid insurance identity theft?

While it's impossible to guarantee that you can stay safe from identity theft, you can certainly take steps to help make it difficult for thieves to access your info. Here are a few of the ways you can help protect yourself:

• Maintain strong, unique passwords for your online accounts. This includes your social media platforms, since thieves could use what they find there to scam other victims or insurance companies.
• Keep a close eye on your insurance statements and medical records. If anything looks fishy or you don’t remember incurring a certain charge, immediately contact the appropriate parties to find out what’s going on.
• Don’t share personal information over text or email. Thieves love to “phish” for victims by sending deceptive messages and making you click malicious links or overshare your data.
• Properly dispose of sensitive documents by shredding or burning them when you are finished with them.

What can you do if you are the victim of insurance identity theft?

Even the best precautions cannot always keep you safe from insurance identity theft. If you find out that a thief has been using your information for their own gain, you must act immediately. Follow these steps to help stop an insurance identity thief before they wreak total havoc on your finances, records, and mental health:

1. Notify your insurance company as soon as possible.
2. Contact the Federal Trade Commission to file a report. They track identity theft incidents and follow protocols to help alleviate the ill effects of this crime.
3. Think about filing a police report. It could be helpful for your local law enforcement to know about the theft so they can keep an eye out for more suspicious activity that happens under your name.
4. Place a credit freeze on your accounts with the major credit bureaus. This can help prevent the identity thief from causing further damage to your accounts and your credit score.
5. Keep thorough records of your communications with each of these entities as well as any other related parties. If you need to prove anything to a company or even in court, you will be glad that you kept careful track.

How can IDShield help you with insurance identity theft?

It can seem exhausting to monitor your various accounts, stay on top of identity theft news, and act swiftly if you do become a victim of ID theft. That’s why IDShield is here to help.

With an affordable IDShield Membership, you gain access to our robust identity protection and restoration services. Here are just a few of the ways that we can help you gain peace of mind:

• We scan the dark web, perform a Privacy Check of top data broker sites, and monitor other accounts of your choosing.
• We alert you if any unusual activity is found so you can take action.
• If identity theft does occur, our Licensed Private Investigators will work to restore your identity to its pre-theft status.
• We provide reputation management tools for you to keep your online presence squeaky-clean.
• Our team is available to help with covered 24/7 emergencies.

Find out how your IDShield Membership can best serve you so you can feel empowered and protected!

Take the next step!

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Written by Elyse Dillard, Content Specialist at IDShield. Elyse creates educational resources about legal and identity theft protection services. She works to make complex legal concepts more accessible to readers and has contributed to numerous articles on the IDShield blog.

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Pre-Paid Legal Services, Inc. (“PPLSI”) provides access to legal and identity theft services through membership-based participation. IDShield is a product of PPLSI. All Licensed Private Investigators are licensed in the state of Oklahoma. The information available in this blog is meant to provide general information and is not intended to provide professional advice, render an option, or provide any specific recommendations. The blog post is not a substitute for competent and professional advice. Information contained in the blog may be provided by authors who could be third-party paid contributors. All information by authors is accepted in good faith; however, PPLSI makes no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of such information.

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