http://www.darkreading.com/database_security/security/attacks/showArticle.jhtml?articleID=227800082 By Kelly Jackson Higgins DarkReading Oct 14, 2010 The threat of medical identity theft came to light yesterday with the FBI's announcement it had busted an organized crime gang that stole the identities of doctors and thousands of Medicare patients in order to operate phony clinics that bilked Medicare and insurance companies of more than $165 million in fraudulent billing. Authorities have charged 73 people, including members of an alleged Armenian-American organized crime organization, with multiple healthcare fraud crimes. The FBI has arrested 52 of these suspects for executing what it says is the largest Medicare fraud case the DOJ has prosecuted to date. The defendants operated close to 120 fake clinics in 25 states and were indicted by authorities in California, Georgia, New Mexico, New York, and Ohio. "The emergence of international organized crime in domestic health care fraud schemes signals a dangerous expansion that poses a serious threat to consumers as these syndicates are willing to exploit almost any program, business or individual to earn an illegal profit," said Acting Deputy Attorney General Gary G. Grinder, in a statement. "The Department of Justice is confronting this evolving threat here and abroad through a number of initiatives including a strengthened Attorney General's Organized Crime Council and the creation of the International Organized Crime Intelligence and Operations Center (IOC-2) to ensure that we are focused and coordinated in our efforts to combat international organized crime." Healthcare identity theft has become a major worry, especially with the movement toward electronic medical records. Some 1.5 million Americans have been victims of medical identity theft, according to data from the Ponemon Institute. Former employees at Johns Hopkins Hospital were indicted earlier this month for an ID theft scam that used patient records to get $600,000 worth of credit. And meanwhile, recent Theft Resource Center data shows that healthcare organizations have disclosed 119 breaches so far this year -- more than three times the 39 breaches suffered by the financial services industry. [...] ___________________________________________________________ Tegatai Managed Colocation: Four Provider Blended Tier-1 Bandwidth, Fortinet Universal Threat Management, Natural Disaster Avoidance, Always-On Power Delivery Network, Cisco Switches, SAS 70 Type II Datacenter. Find peace of mind, Defend your Critical Infrastructure. http://www.tegataiphoenix.com/Received on Thu Oct 14 2010 - 22:38:33 PDT
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