When a criminal uses stolen personal information to file for disability benefits in someone else’s name, that’s disability identity fraud. Read on for expert guidance on how to identify, report, and resolve this type of government benefits fraud.
Government benefits fraud has become more common, and can slow the delivery of benefits to people in real need. One type of government benefits fraud, disability fraud, costs consumers $7.5 billion annually.
At Allstate Identity Protection, we recommend everyone stay alert to disability fraud, and we’ve compiled a few ways you can do just that.
Here’s how to help keep an eye on this growing problem and monitor for claims made in your name.
What is disability fraud?
Disability fraud happens when someone files forged paperwork with the government to illegally draw funds intended for people with disabilities.
Disability fraud can involve identity theft — like when a criminal uses stolen personal information to apply for disability benefits in someone else's name.
Since applications for disability benefits need to be certified by health professionals, these schemes can be complex, which in turn may make them hard to prevent. Scammers may need to create two false identities — one for the person applying for disability and another for the medical provider.
Impersonating individuals and doctors may be on the rise in part due to personal data that’s either accessible on the internet — such as addresses and medical schools — or exposed through data breaches.
How to protect yourself from disability fraud
Like many fraud types, disability fraud often involves the use of personal information that’s already been stolen or shared online. That’s why some common fraud prevention tactics, like freezing your credit, won’t help.
“The best thing you can do to protect yourself is to safeguard your personal information,” says Brian Stuart, Allstate Identity Protection Senior Director of Customer Care. Here are a few best practices to keep in mind:
Treat your personal information like a credit card number. Be mindful of who you share it with, online and in the physical world.
Be cautious about “free” apps. Many online services collect huge amounts of data. If a company that has your information is breached, you could be at risk of identity theft.
Be aware of common scams. If you know fraudsters may target you with phony telemarketing calls and phishing emails, you’ll have a leg up.
Monitor your financial statements — especially if you’ve been a victim before. “If you’ve experienced fraud, your details may have already fallen into the wrong hands, so keep a close eye on your credit and financial accounts,” adds Stuart.
If you’re a disability fraud victim...
Unfortunately, even the best habits can’t completely protect against fraud. With that in mind, be alert for these signs that you may be the victim of disability fraud:
You receive a letter related to disability benefits for which you did not apply
Your employer informs you that someone has filed for disability in your name
If you think you’re a victim, here’s what to do next:
If you’re employed, contact your human resources department; your company will need to work with the Social Security Administration to dispute the claim
File an electronic report online with the Office of the Inspector General (OIG)
File a one-year fraud alert with all three of the credit bureaus
File an affidavit with the Federal Trade Commission
The government requires individuals to report disability fraud directly. If you’re an Allstate Identity Protection member and you need more assistance, we’re here to help guide you through the process.