As many as 150 million working Americans are covered by health plans organized under ERISA. Given the scale of health insurance data breaches, there is a high probability that millions of them — and their health plans — will be a victim of fraud and identity theft.
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More than 400 million health insurance identities have been breached or compromised since 2021 alone. Yet no breached entity, employer, third-party administrator (TPA) or health insurance carrier has offered any protection against identity theft and fraud against health insurance benefits. This is potentially a large, yet unaddressed risk to plan sponsors and their servicers that benefit brokers and advisers need to help their employer clients guard against.
The absence of protected health information (PHI) contributes to the rise in class-action suits against breached entities. As soon as a health…
Never click on links in SMS messages or emails that claim your account has been “suspended” or that you have a “pending package,” as these are classic entry points for credential-harvesting malware.