Medical Scams That Could Hurt Your Health and Wallet

When considering a product, ask yourself, ‘Does it sound too good to be true?’

Medical fraud could injure more than your wallet—they could make you sick or sicker. PeopleImages.com - Yuri A/Shutterstock

From bogus cures to medical identity theft, scammers are trying to steal your money. But unfortunately, these frauds could injure more than your wallet—they could make you sick or sicker.

The Food and Drug Administration (FDA) warns that you don’t have to look far to find a health product that’s bogus. Products can be found in stores, on the internet, and through mail-order catalogs. They can even be passed along by word of mouth. Knowing how to identify them is crucial to your health.

Medical Identity Theft

Medical identity theft goes beyond a financial transaction. It can also inhibit your medical care or even cause you legal problems.

According to the Federal Trade Commission (FTC), medical identity theft occurs when someone uses another person’s name or insurance information to receive medical treatment. It also could mean the thief obtains prescription drugs like opioids in the victim’s name. This could lead to legal problems for the victim.

According to the AARP, medical identity theft cases rose from 6,800 in 2017 to 43,000 in 2021. The organization calls it a particularly “insidious form of identity theft.”

Consequences of Medical-Identity Theft

Perpetrators use stolen medical identifiers, like cards or numbers, to bill insurance companies for fictitious services or equipment.

Your medical records could be falsified with treatments and services you didn’t receive. This could affect your treatment. For example, some information that could show up in your medical record includes:

• A different blood type
• Inaccurate history of drug or alcohol abuse
• Test results that aren’t yours
• A diagnosis of an illness, condition, or allergy you don’t have.

This may ultimately affect your health, especially if you’re having a medical emergency and can’t speak for yourself.

Your health can be hurt in other ways as well.

Medical-identity thieves could cause you to reach benefit limits. This would affect your coverage. You need surgery, but your insurance limits are maxed out, and you can’t receive it.

And, finally, you could be billed for treatments and medications you didn’t receive. If you are billed and don’t pay, it may be reported to collection agencies. It could potentially harm your credit score.

Avoiding Medical-Identity Theft

You must protect your insurance card and Medicare card just as you would a credit card. These cards are worth a lot of money; potentially more than your credit cards are worth. Ensure you review your Medicare Summary Notices (MSN) and Explanation of Benefits (EOBs) statements and medical bills for suspicious charges. Correct any information immediately.

Only give your medical information to Medicare-approved doctors, other providers, and suppliers. And beware of free medical equipment services or goods in exchange for your Medicare number.

Ensure you shred any paperwork that contains your insurance card or Medicare number on it. Remove or destroy the prescription bottle label and packages before disposing of them.

Bogus Health Products Hurt Consumers

You don’t have to look hard to find bogus health products. They’re pushed to unsuspecting consumers daily. They show up on TV “infomercials,” newspapers, and magazine ads. According to the FDA, consumers spend billions of dollars annually on fraudulent health products.

The FDA describes health fraud as “articles of unproven effectiveness that are promoted to improve health, well-being, or appearance.” These can be drugs, devices, foods, or cosmetics for human or animal use.

Take a hard look at any product and look for these red flags.

One Product Cures All

Watch out for products that claim to cure a wide variety of unrelated diseases. No product can treat every condition.

If they claim it’s beneficial for arthritis, infections, heart troubles, hardening of the arteries, or a slew of other ailments, it’s likely bogus, and you should beware of it.

Cancer, AIDS, and diabetes are often mentioned and are particularly insidious because they could keep people from receiving proper treatment. They are lured by the promise of a cure.

Personal Testimonials From Strangers

The FDA warns that personal testimonies can tip you off to health fraud. These are difficult to prove.

Reynaldo Rodriguez, compliance officer and health fraud coordinator for the FDA’s Dallas district office, said, referring to testimonials, “This is the weakest form of scientific validity. It’s just compounded hearsay.”

‘Natural’ Used to Describe Product

The word natural is often used in health fraud as an attention grabber. It implies a product is safer than conventional treatments. But the term doesn’t equate to safety.

According to Shelly Maifarth, a compliance officer and health fraud coordinator for the FDA’s Denver district office, “Sixty percent of over-the-counter drugs and 25 percent of prescription drugs are based on natural ingredients.”

She said that any product potent enough to work, whether it’s synthetic or natural, is going to be potent enough to cause side effects.

Natural doesn’t necessarily mean safe.

Time-Tested or New-Found Treatment

The FDA reports that claims of “innovation,” “miracle cure,” “exclusive product,” or “new discovery” are highly suspect. If they were legitimate, they would be in mainstream medicine, not hidden on a website or late-night show.

“Ancient remedies” are also typically considered bogus.

Beware Satisfaction Guaranteed

This one is a big red flag. Fraudulent product marketers don’t stay in one place for long. So, if someone guarantees “rapid weight loss” or “no more pain,” don’t count on a refund when it doesn’t work.

Paranoid Accusations Against Legitimate Medical Industry

These products claim that healthcare providers and legitimate manufacturers are in cahoots with each other. They state that they only want to sell you a legitimate treatment, drug, or equipment for financial gain.

This accusation is just to catch your attention.

Report Health Scams and Do the Research

If you’ve discovered a health scam, first tell your friends and family so they won’t become victims. Then report it to the FTC fraud department.

Ensure you notify your health insurance company and Medicare immediately if an EOB or MSN is incorrect.

Notify your healthcare providers, including the hospital, if you receive bills for services you didn’t receive. This could save you money and avoid debt collectors.

When considering a product, ask yourself, “Does it sound too good to be true?” Check with your healthcare provider before purchasing the product. You can also check with the Better Business Bureau or your local attorney general’s office to see if the product has received complaints.

The Epoch Times copyright © 2025. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.