Doctors, Hospitals, Healthcare Providers and Identity Theft Red Flags

I noticed that I don't have a specific post about Hospitals and I noticed this article in the news about Wake Forest University Baptist Medical Center updates policy to address the FACTA Red Flags Rule:

"The hospital already had a medical identity theft prevention program in place, he said, but is updating it as part of the Federal Trade Commission's "Red Flag Rules" program."

http://www.bizjournals.com/triad/stories/2009/07/06/daily10.html


This May 2009 article from the FTC was intended to clarify the actions that Hospitals and other Healthcare providers must take and in it they state

The Red Flags Rule, a law the FTC will begin to enforce on August 1, 2009, requires certain businesses and organizations — including many doctors’ offices, hospitals, and other health care providers — to develop a written program to spot the warning signs — or “red flags” — of identity theft. Is your practice covered by the Red Flags Rule?

The “Red Flags” Rule: What Health Care Providers Need to Know About Complying with New Requirements for Fighting Identity Theft

http://www.ftc.gov/bcp/edu/pubs/articles/art11.shtm

Girl Scouts and ID Theft

This came up in a conversation recently and I realized it was not on my blog so here are 2 links about how Girl Scouts were touched by the Identity Theft epidemic in 2007:


1. Colorado Mile High Council Data Breach
The Girl Scouts Mile Hi Council has notified its members and their parents that they might be at risk for identity theft because of tapes stolen from a car June 27.
http://www.rockymountainnews.com/drmn/local/article/0,1299,DRMN_15_5621147,00.html


2. Girl Scout Leader Sentenced to 10 years + for Identity Theft
October 31, 2007, Barnes entered pleas of guilty to nineteen (19) counts of filing false and fictitious claims for refund to the IRS, fifteen (15) counts of unlawfully using the identification of another person to commit an unlawful activity (Identity Theft), and one (1) count of theft of government property. In her October plea hearing, Barnes admitted to having used her position of trust as a Girl Scout leader in Pea Ridge, Florida, to obtain personal history information from the members of the Girl Scout Troop.
http://www.forensicexams.org/index.php?option=com_content&task=view&id=2219&Itemid=76

The IRS Isn't Careful?

I found this article online today:

http://voices.washingtonpost.com/securityfix/2009/05/report_irs_created_dumpster-di.html

Apparently even the IRS is not following it's own advice. Or the law for that matter.

The article links to the 29 page report from the Treasury Inspector General for Tax Administration which states that investigators

"had trouble finding anyone responsible for overseeing most of the facilities that the IRS contracted with to burn or shred sensitive taxpayer documents."

That report is available here:
http://www.treas.gov/tigta/auditreports/2009reports/200930059fr.pdf

Mortgage Fraud Surpassing Identity Theft?

Texas Attorney General Greg Abbott has a video up today on his website related to this article

CONSUMER ALERT: Smishing Scam Targets Houston-area Credit Union Accounts

http://www.oag.state.tx.us/oagNews/release.php?id=3014

The video clip is cited as "Austin - Office of the Attorney General Hosts Mortgage Fraud Summit" and in it he says that in at least one study, Mortgage Fraud has become the fastest growing White-Collar Crime in America, surpassing Identity Theft.

I would like to remind you that some companies offering Identity Theft Restoration, would consider Mortgage Fraud as a form of Identity Theft.

Shredding

I noticed while searching my blog that I don't have a discreet post about shredding documents, particularly as it relates to Texans and the "Identity Theft Enforcement and Protection Act" so here is a post for this purpose.

In addition to linking to the particular law above, here is an article I've used in class regarding CVS Pharmacy and Radio Shack:

CVS joins RadioShack on Abbott's document-tossing suit docket

http://www.legalnewsline.com/news/contentview.asp?c=193725

And here is a link to the source of this information on Texas Attorney General Greg Abbott's homepage:

Agreed judgment requires CVS Pharmacy to improve document disposal process
http://www.oag.state.tx.us/oagNews/release.php?id=2397

Medical Identity Theft Concerns Grow

This is a good article and ties into the Anndorie Sachs story from class, note the last sentence "Dixon said, "Without aggressive safeguards, we could be building an infrastructure for massive medical fraud" (Konrad, New York Times, 6/13)."

http://www.ihealthbeat.org/Articles/2009/6/15/Medical-Identity-Theft-Concerns-Grow-as-EHR-Adoption-Increases.aspx

FTC Will Grant Three-Month Delay of Enforcement of ‘Red Flags’

FTC Will Grant Three-Month Delay of Enforcement of ‘Red Flags’ Rule Requiring Creditors and Financial Institutions to Adopt Identity Theft Prevention Programs

http://www.ftc.gov/opa/2009/04/redflagsrule.shtm

The Fair and Accurate Credit Transactions Act of 2003 (FACTA).... Some examples of creditors are finance companies; automobile dealers that provide or arrange financing; mortgage brokers; utility companies; telecommunications companies; non-profit and government entities that defer payment for goods or services; and businesses that provide services and bill later, including many lawyers, doctors, and other professionals.

I want to remind you that ID Theft is a serious issue. Liabilities for carelessness still exist even though the FTC is delaying enforcement of this rule. As noted in the release, entities that are covered by other agencies may not benefit from this FTC extension at all. The liabilities for you and your business still exist even though the enforcement of this particular rule has been delayed.

With all the press-releases on this topic, when the FTC does decide to enforce the rule do you think that either "I didn't know about this" or "I didn't have time" is something you want to say in your own defense?

This has been a topic that should have been on the minds of business owners and government agencies since January 1, 2008 when the Rules became effective. The November 2007 announcement is coming up on its 2 year anniversary.