Fake Medical Labs Rake in $84K Using Stolen Insurance Info from Illinois Couple

A Des Plaines, Illinois couple was shocked to learn their health insurance had been billed for over $84,000 in fake medical lab services by eight different companies they’d never visited. Despite alerting their insurer, the phantom charges continued, prompting an investigation that revealed a troubling trend: nonexistent labs using stolen patient data to submit bogus claims and collect payouts.

The Larsons, who receive their Blue Cross Blue Shield coverage through the state of Illinois, first noticed the scam after a steady stream of Explanation of Benefits (EOB) statements listed unfamiliar labs and pathology services. NBC 5 Responds tracked down the listed labs, only to find disconnected numbers, empty office spaces, and addresses linked to unrelated or defunct organizations.

Experts say this type of healthcare fraud often stems from stolen personal and insurance data obtained through widespread breaches. Fake billing companies exploit automated claims systems, especially for smaller charges, allowing them to escape detection while raking in substantial profits. As these schemes grow more common, patients like the Larsons remain vulnerable to having their information misused—sometimes without realizing it for months.

HealthLock CEO Scott Speranza warns that this type of fraud is now rampant, with more than 133 million patient records exposed since 2021. Blue Cross Blue Shield of Illinois advises patients to regularly review their EOBs, report discrepancies, and protect their insurance ID as they would a credit card. The FBI has also encouraged the public to report any suspicious activity, stating that even minor tips can help build larger fraud cases.