Healthcare data breaches can threaten your financial well-being

Ellenbogen — Thu, 19 Dec 2019 14:01:25 +0000

Like many sectors of the economy, the healthcare industry
regularly suffers data breaches. Healthcare analytics company Protenus has
found that nearly 32 million patient records were breached between January and
June 2019 alone.

Alarmed? You should be. However, there are steps you can take to
reduce the risk that thieves will get a hold of your medical records and use
them for nefarious purposes.

Why they’re valuable

Unlike other types of personal data, healthcare records command
a hefty premium on the black market. That’s at least partly because criminals
can potentially use information about an individual’s health to blackmail him
or her.

Also, stolen medical records include valuable details about
people’s identities. In fact, there’s usually enough information in medical
files to facilitate extensive identity theft. These schemes can involve health
insurance-related fraud as well as financial account and tax fraud schemes.

What you can do

The following four steps can help you protect your personal
medical and other data:

Be careful what you share with providers. Healthcare providers typically ask for a lot of personal information, including your Social Security number. But you aren’t obligated to provide it. If in doubt regarding whether a piece of data is critical to receiving care, ask your provider. If the provider says the information is necessary, learn how it plans to use the data —and protect it from thieves.
Read the small print. Apply the same caution to healthcare apps. Only provide access to data that’s critical for the service. Read the service provider’s terms and conditions and its privacy notice so that you understand how and where your data might be used.
Closely review insurance statements. Sometimes the first sign of identity theft is an insurance company statement detailing medical services you didn’t receive. Go over every insurance document and contact your insurer and the medical provider immediately if you spot any discrepancies.
Don’t assume privacy online. Revealing personal details online (for example, with a large group of “friends” on social media) may provide criminals with enough information to steal your identity. Keep in mind that a dedicated criminal could piece together a detailed profile of you simply by visiting multiple sites where you’re active.

If your data is compromised

If you fear your healthcare information was included in a data breach or has otherwise been compromised, consider contacting the three major credit bureaus to freeze your credit file. This prevents the unauthorized creation of new accounts. Also step up your monitoring of insurance statements to ensure no one is filling prescriptions or making office visits in your name

Dissecting the role of the forensic accountant in litigation

Ellenbogen — Wed, 01 May 2019 12:23:34 +0000

When people hear the term “forensic science,” they usually think “CSI.” What comes to mind when you hear the term “forensic accounting”? Similar to forensic scientists offering opinions about scientific matters, forensic accountants may be called on to investigate and serve as financial experts in commercial litigation. Here’s how.

Who they are

Forensic accountants specialize in conducting fraud audits and investigations to detect irregularities and troubling trends, looking for both telltale and subtle signs of white collar crime. Certified fraud examiners (CFEs) are specially trained in fraud discovery, recognition, documentation and prevention. They’re also generally knowledgeable about human behavioral factors and motivations that contribute to the commission of fraud, such as the ability to rationalize fraudulent conduct.

Often, forensic accountants are retained to detect misrepresentations of financial data or to locate missing funds. It’s important to investigate fraud suspicions as early as possible to help mitigate potential losses.

What to expect

When you or your attorney engages a forensic accountant, you can expect the expert to work closely with you to tailor an investigation to the situation at hand. Depending on the type of fraud suspected, the investigation may be performed on a comprehensive, companywide or random, spot-check basis.

Forensic accountants work to determine the scope of the fraud, including its duration and participants. Investigations typically require extensive document review. In a case involving asset misappropriation, for example, experts might search for forged documents.

They also look for evidence of compliance — or noncompliance — with Generally Accepted Accounting Principles (GAAP). Of course, GAAP compliance doesn’t guarantee legitimate accounting, so an investigation might also focus on specific areas that wouldn’t necessarily be caught in an audit, such as the use of assets at the operational level. Are they being used as intended or for the benefit of an employee? Are all of the assets accounted for?

When to expand the scope

Special investigations also can be effective in uncovering high-level financial fraud. A board usually receives its financial and operational information from a company’s executives. Investigations enable board members to get deeper, more detailed information without going through management. Experts can interview individuals “in the trenches” and review raw data, and then communicate their findings directly to the board.

Fraud investigations might be used to monitor the activities of top executives — even if only for policy lapses. Management members often are given greater latitude and may be tempted to bend the rules. When this occurs, it can influence a company’s ethical environment and encourage other employees to disregard policies or commit fraud.

When to call

If you suspect a financial impropriety, contact us. We can help minimize fraud losses, preserve confidentiality and admissibility of evidence, and possibly even reduce litigation costs.

financial fraud – Crawford Ellenbogen

Healthcare data breaches can threaten your financial well-being

Dissecting the role of the forensic accountant in litigation