matttyl
Footballguy
So, as some of you know I'm an insurance agent - and this week I believe I've come across an interesting situation of fraud, and according to one of my carriers - one that's been popping up more and more lately.
I got a call from a long time health insurance client of mine. She said she tried to make a payment for her policy recently, but was told by the carrier that the policy was canceled back to the end of June. She had no idea how that could be, considering she had since already paid for July (she was trying to pay August when all this started). Carrier said they had a recording of her requesting the cancellation. Apparently, here's what happened:
At some point, someone got a hold of her name, ID number, and probably date of birth (keep in mind, any pharmacy you visit would have all this and more, as would any health care provider you ever see - or anyone that gets a look in your wallet for all of 10 seconds). They called the carrier, as my client, and requested a change of address - likely just mailing address, didn't even need to be physical address. Some time later (likely first week of July), they called back with the above information and requested "cancellation at the current paid to date" (end of June), which was processed. My client is on an auto pay for their policy - which happens around the 6th or so of the month, but is in the works with the bank for at least 3-4 days prior ready for the pending transfer. Just over $1,400 was electronically transferred from client bank account to carrier, who received funds. Carrier had no policy to apply funds to, as it was already canceled - and issued a refund check.....to the newly changed address. Now, I'm not quite sure how that would have cleared, would the person just forge a signature and cash the check in full? Wouldn't they also need ID?
I'd think this sort of thing could happen not just in health insurance, but in a lot of stuff.
I got a call from a long time health insurance client of mine. She said she tried to make a payment for her policy recently, but was told by the carrier that the policy was canceled back to the end of June. She had no idea how that could be, considering she had since already paid for July (she was trying to pay August when all this started). Carrier said they had a recording of her requesting the cancellation. Apparently, here's what happened:
At some point, someone got a hold of her name, ID number, and probably date of birth (keep in mind, any pharmacy you visit would have all this and more, as would any health care provider you ever see - or anyone that gets a look in your wallet for all of 10 seconds). They called the carrier, as my client, and requested a change of address - likely just mailing address, didn't even need to be physical address. Some time later (likely first week of July), they called back with the above information and requested "cancellation at the current paid to date" (end of June), which was processed. My client is on an auto pay for their policy - which happens around the 6th or so of the month, but is in the works with the bank for at least 3-4 days prior ready for the pending transfer. Just over $1,400 was electronically transferred from client bank account to carrier, who received funds. Carrier had no policy to apply funds to, as it was already canceled - and issued a refund check.....to the newly changed address. Now, I'm not quite sure how that would have cleared, would the person just forge a signature and cash the check in full? Wouldn't they also need ID?
I'd think this sort of thing could happen not just in health insurance, but in a lot of stuff.
