Identity theft 101: what is government benefits fraud?

August 27, 12:47 PMIdentity Theft ExaminerJoe Campana

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Government benefits fraud involving identity theft occurs when an identity thief uses the identity of a victim to obtain government monies or services. A Social Security Number (SSN), Social Security Card or Medicare Card is required to apply for government benefits. Consequently,this type of identity fraud is related to Government Identification Fraud, which includes the use of a victim’s SSN and the forgery of related identification cards.

Reports of identity theft involving government benefits fraud and government id fraud increased 65% nationwide in 2008 compared to the previous year. In some states such as Wisconsin, these identity fraud crimes increased over 100%.

Benefits fraud includes health care involving Medicare and Medicaid. Fraud may be perpetrated by individuals by using the full identity of another person or just their SSN to obtain individual benefits. Medicare and Medicaid fraud can also entail a person, including rogue businesses billing the government for hundreds of transactions by using Medicare Card Numbers stolen from victims.

Benefits fraud also includes obtaining tax refunds and rebates due the victim. Identity thieves can obtain state welfare checks and qualify for state run health care programs--a form of medical identity theft. At the local level of government , identity thieves obtain food stamps (or equivalent), energy assistance, disability benefits, and other public assistance.

Local governments are prone to facilitating government benefits fraud. Government social workers, want to assist needy people, the poor and illegal immigrants. To do so they knowingly accept fraudulently used SSNs to provide benefits. In doing so, they may be benefiting the needy, but each time they aid and abet this seemingly innocuous fraud they create a new victim of identity theft. The victims will likely suffer financial and emotional consequences and inconveniences in the future.

The best way to prevent this type of identity fraud is to guard your SSN. If you live in a state that does not already outlaw SSNs from appearing on public records that are accessible to anyone, especially through the Internet, contact local government clerks, recorders and register of deeds and request that your SSN be redacted from publicly available records.