Health insurance fraud continues to rise and can cost victims thousands of dollars, damage credit, and create significant stress. Fraudsters are becoming more sophisticated as telehealth, digital records, and online enrollment become more common. Protect yourself and your clients by following these 10 practical steps.
1. Don’t Overshare Personal Information
Only provide personal information when it is absolutely necessary. Social Security numbers, Medicare numbers, and driver’s license details should not be shared casually. Fraudsters often pose as insurance representatives or medical offices. Always ask why the information is needed and how it will be used before providing it.
2. Be Alert to Phishing Emails and Text Messages
Scammers frequently use emails, text messages, and phone calls that appear to come from insurers, Medicare, or healthcare providers. Do not click unknown links or download attachments. Legitimate insurance companies do not request sensitive information through unsolicited messages. If you are unsure, contact the company directly using a verified phone number.
3. Review Explanation of Benefits and Medical Statements
Regularly review your Explanation of Benefits and medical bills, even when coverage appears correct. Look for unfamiliar providers, services you did not receive, or duplicate charges. Report suspicious activity immediately to your insurance company and healthcare provider.
4. Monitor Your Credit and Identity
Healthcare fraud often leads to identity theft. Review your credit report at least once a year. Credit monitoring services and fraud alerts can help detect suspicious activity early and reduce long-term damage.
5. Be Cautious With Health Apps and Wearables
Health apps, fitness trackers, and telehealth platforms often collect sensitive personal data. Before using them, review privacy policies and data sharing practices. Avoid entering insurance or identification information into apps or websites that do not clearly explain how your data is protected.
6. Secure How and Where You Store Medical Information
Treat medical records the same way you treat financial documents. Use strong passwords, two-factor authentication, and encryption for digital files. Store physical documents in a locked cabinet or secure location and avoid leaving paperwork in cars or shared spaces.
7. Use One Secure Record Storage Method
Using both paper and digital records increases the risk of exposure. Choose one secure method and manage it carefully to limit access points for sensitive information.
8. Keep Devices and Software Updated
Install reputable antivirus and malware protection on all devices used to access healthcare information. Keep operating systems, apps, and browsers updated to protect against known security risks.
9. Avoid Public Wi-Fi for Healthcare Access
Public Wi-Fi networks are common targets for hackers. Avoid accessing insurance portals, healthcare apps, or telehealth platforms while connected to public networks. Use a secure home network, mobile data, or a trusted VPN instead.
10. Be Careful With Cloud Storage
Cloud storage can be convenient but requires proper security. Use strong passwords and multi factor authentication. Limit the amount of sensitive medical information stored online. For highly sensitive documents, consider using an encrypted external hard drive stored in a secure location.
Final Thoughts
Health insurance fraud can often be prevented with awareness and proactive habits. Regularly reviewing records and protecting personal information can greatly reduce risk. Educating clients on these steps helps protect their finances and provides peace of mind.
Agents
We hope that this information on fraud is useful to you.
Empower Brokerage is dedicated to helping you make informed decisions about your health and finances. Whether it’s through webinar training, one-on-one calls, seminars, or marketing plans, we want you to be successful!
Give us a call at 888-539-1633 or leave a comment below if you have any questions.
Quick links:
Don’t Forget to Follow Us on Social Media
This article was updated on December 26, 2025.