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Fraud: Early Warning Signs Of Fraud

2467 words - 10 pages

The early warning signs of fraud are, usually, always ignored. There are warning signs for every type of fraud out there. To understand the warning signs of fraud, we must first know what fraud is. Fraud is the intent to trick someone or lie to someone in order to receive financial gain. This definition varies depending of the type of fraud used, but the person committing the fraud is always looking for financial gain. There are many types of fraud out there. You have Medicare fraud, internet fraud, mortgage fraud, loan fraud, tax fraud, embezzlement, forgery, insurance fraud, and marriage fraud. These are only a few types of fraud. There are many more types of fraud out there and new types of fraud are being committed every day. This paper will focus on different types of fraud. The different types that will be discussed are physician identity theft, medical identity theft, corporate fraud, inventory fraud, Ponzi schemes, charity scams, miracle cure scams, and identity theft. Each type of fraud will lead into a discussion of what the fraud is, how it happens, what are the warning signs of the fraud, and what you can do to protect yourself.
Physician identity theft is becoming more of a problem every day. This type of fraud can be listed as a sub category under Medicare fraud. Medicare fraud is one of the most well known types of fraud and, “is the purposeful billing Medicare for services that were never provided or received” (1). Physician identity theft can also be listed as a sub category for identity theft. Identity theft is when, “the use of another’s personal information without permission” (1). Physician identity theft can be described as when, “the thief uses the physician’s ID for fraudulent purposes” (2). This can go on for some time without the physician knowing and taking millions out of the health care system. It is a problem for the tax payers, the physician’s business, and the physician’s patients. Tax payers are putting money into Medicare throughout all of their working life and are expecting it to be there to help provide for the elderly who need it. The physician never pays taxes on any of the money that Medicare has sent him. Patients that see that physician may feel less secure and switch to other doctors if a fraud has occurred. One way this fraud is detected is when, “the unknowing physician gets a call from the Internal Revenue Service” (3).
For the fraud to occur, all the thief needs is to obtain the physician’s ID or obtain a physician’s prescription pad. The physician’s ID, business address, and medical license can be obtained through hospital files. The prescription pad can be obtained at the physician’s office. Once the physician’s ID, business address, and medical license are stolen it can be sent to, “the state health department to obtain Medicaid provider numbers” (3). The thief will also change the address of the business. Patient information is also important to be able to bill Medicare or Medicaid. The...

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