TeleMedicine and the Digital Era – A Potent Mixture for Medical Fraud?


World Health Organization defines telemedicine as ‘The delivery of health-care services, where distance is a critical factor, by all health-care professionals using information and communications technologies for the exchange of valid information for diagnosis, treatment, and prevention of disease and injuries, research and evaluation, and the continuing education of health-care workers, with the aim of advancing the health of individuals and communities.

The advent of telemedicine and the integration of digital technology into the healthcare industry has had a profound impact on the delivery of medical services. This new era of healthcare has allowed patients to access medical care from the comfort of their homes and has expanded access to healthcare services to remote and underserved populations. However, with the rise of telemedicine and the increasing use of digital technology, there is growing concern over the potential for medical fraud.

Medical fraud can take many forms, including billing fraud, identity theft, and the sale of counterfeit or expired medications. In the past, medical fraud was primarily committed in person, but with the rise of telemedicine, medical fraud is increasingly being committed online. This new form of medical fraud can potentially cause significant harm to both patients and the healthcare system as a whole.

One of the main drivers of medical fraud in the digital era is the increasing use of electronic medical records (EMRs). EMRs store sensitive patient information and are increasingly targeted by cybercriminals for financial gain. In addition to being vulnerable to hacking and data breaches, EMRs can also be manipulated by fraudsters who impersonate healthcare providers or manipulate patient information to justify false insurance claims. One of the most recent examples of a data breach of EMRs was the hacking of at least 5 servers of the AIIMS in Delhi in December 2022 which resulted in the compromise of data related to OT operations, patient files, and doctors’ data. However, the data was retrieved from a backup server and restored to new servers.

Telemedicine is used to denote clinical service delivered by a Registered medical practitioner. Until recently, there did not exist any laws regarding the provision of telemedicine services. The Hon’ble High Court of Bombay in the case of Deepa Sajeev Pawaskar & Anr. v. The State of Maharashtra, questioned the legitimacy of the practice of telemedicine in India, at least with respect to telephonic consultations. The Ministry of Health and Family Welfare, Government of India (“MoHFW”) announced the Guidelines in March 2020 in response to the Covid-19 pandemic. These Guidelines enabled Registered Medical Practitioners to deliver healthcare services via information and communication technologies. India adopted the custom of unveiling the aforementioned Guidelines as a non-legislative action.

Tools of TeleMedicine

Different tools are used to provide telemedicine consultations to patients. The 3 primary modes are Video, Audio, or Text. Each one of these technology systems has its own advantages, disadvantages, and situations in which it may be appropriate or insufficient to provide an accurate diagnosis. While many people use telemedicine with their usual healthcare provider. Others access virtual care using a dedicated telemedicine app.

Telemedicine can be classified into three main categories:

Are there benefits of Telemedicine?

Telemedicine, the use of technology to deliver medical care and consultations remotely, has been on the rise in recent years. The COVID-19 pandemic has accelerated the adoption of telemedicine, as patients and healthcare providers seek alternatives to in-person visits. Telemedicine has many benefits that make it an attractive option for patients and healthcare providers alike. Some of these benefits are listed down below:

  • Improved Access to Healthcare – One of the primary benefits of telemedicine is improved access to healthcare, especially for people who live in remote or rural areas. Telemedicine enables patients to connect with healthcare providers regardless of their location, as long as they have an internet connection. This makes it easier for patients to access healthcare services, including medical consultations, diagnostic tests, and follow-up appointments.
  • Convenience and Flexibility – Telemedicine offers patients greater convenience and flexibility, as they can receive medical care from the comfort of their own homes. This eliminates the need for patients to travel long distances and take time off work to attend appointments. Telemedicine also enables patients to schedule appointments outside of regular business hours, which can be especially helpful for people with busy schedules.
  • Reduced Costs – Telemedicine can be a cost-effective alternative to traditional in-person visits. Patients can save money on travel costs, parking fees, and other expenses associated with attending appointments in person. Additionally, telemedicine can be more cost-effective for healthcare providers, as they can see more patients in a shorter amount of time. This can help to reduce wait times for appointments and increase the overall capacity of healthcare facilities. Telemedicine can also help to reduce administrative tasks, such as filling out paperwork and managing patient records.
  • Better Care for Vulnerable Populations – Telemedicine can provide better care for vulnerable populations, such as the elderly and people with disabilities. These populations may have difficulty accessing traditional healthcare services due to mobility issues or transportation barriers. Telemedicine enables these patients to receive medical care from the comfort of their own homes, which can improve their overall health and quality of life.

Plaguing Issues

Telemedicine allows patients to receive medical care over the phone or via videoconferencing, and it became increasingly popular during the COVID-19 pandemic. However, the anonymity of telemedicine has created opportunities for fraudsters to pose as healthcare providers and prescribe unnecessary medications or perform unnecessary tests. Medical fraud is a serious concern in any healthcare setting, and telemedicine is no exception. The following are some of the most common forms of medical fraud that occur in the telemedicine space:

  • Identity Theft: Identity theft refers to when someone steals another person’s personal information and uses it for their own fraudulent or deceitful advantage, usually to benefit them financially. Although there is no legislation that defines identity threats, Section 66C of the Information Technology Act lays down the punishment for Identity Theft and Section 66D lays down the punishment for cheating by personation by using any communication device or computer resource.
    With the widespread use of telemedicine, it has become easier for fraudsters to steal patients’ personal and medical information. This can lead to the creation of fake prescriptions, fraudulent claims, and even insurance fraud. An imposter can also easily misuse the information of RMP that is available on the websites of the relevant medical council. This could endanger the lives and health of people who seek medical care through platforms and devices for communication other than specialist telemedicine apps. 
  • Fraudulent Prescriptions: Telemedicine makes it easier for fraudsters to write and distribute fake prescriptions. This type of fraud is particularly concerning as it can lead to the distribution of counterfeit drugs, which can have serious health consequences. With the increasing use of online pharmacies, it has become easier for fraudsters to sell fake or expired medications to patients. These medications can be dangerous and cause serious harm to patients, particularly if they are being used to treat serious health conditions.
  • Billing fraud occurs when telemedicine providers bill for services that were not actually provided or when they overcharge for services. This can result in financial losses for patients and insurers. Numerous times, patients are charged for services they did not even avail of.

Medical Fraud in Digital Era – Diagnostics and Cure

Detecting and preventing medical fraud in the digital era can be challenging, as fraudsters have become increasingly sophisticated in their tactics. The following are some of the key challenges associated with detecting and preventing medical fraud in the telemedicine space:

  • Challenges in Verifying Identity: In a digital setting, it can be difficult to verify the identity of patients and providers. Fraudsters can use fake identities to gain access to sensitive information, and patients can also create multiple accounts to commit fraud.
  • Risks of Data Breaches and Cyberattacks: Telemedicine platforms collect and store vast amounts of patient data, making them a prime target for hackers. Data breaches can result in the theft of sensitive information, including personal and financial information, medical records, and prescriptions.

Mitigating the Risks of Medical Fraud in Telemedicine


Mitigating the risks of medical fraud in telemedicine requires a multi-faceted approach. The following are some of the key strategies that can be used to prevent and detect medical fraud in the telemedicine space:

  • Licensing and Regulation of Telemedicine Providers: Licensing and regulation of telemedicine providers can help to prevent fraudulent providers from entering the marketplace. By verifying the credentials and qualifications of providers, patients can be assured of receiving high-quality care from reputable providers.
  • Implementing Secure Digital Platforms and Encryption Technologies: Telemedicine providers must implement secure digital platforms and encryption technologies to protect patient data from cyberattacks and data breaches.
  • Educating Patients and Providers: Patient and provider education is critical to preventing medical fraud in telemedicine. Patients should be educated about the risks of medical fraud, and providers should be trained to detect and prevent fraud. patients should be careful about providing personal information online and should be cautious about purchasing medications from online pharmacies that are not verified by a trusted source. Patients should also be aware of the signs of medical fraud and should report any suspicious activity to their healthcare providers or to the authorities.


In conclusion, telemedicine has emerged as a game-changing technology that has revolutionized healthcare delivery. It has brought about many benefits to the healthcare industry, but it has also created new opportunities for medical fraud. To prevent medical fraud in the digital era, it is important to implement strong security measures, educate both healthcare providers and patients about the risks of medical fraud, and use advanced analytics tools to detect and prevent fraudulent activity. By taking these steps, we can ensure that telemedicine and the digital age are used for the betterment of the healthcare system rather than for financial gain by fraudsters.

With the advancement of technology, there will be even more opportunities for information manipulation and human exploitation. It is the responsibility of the government to ensure the prevention of such exploitation by educating the people and making the required laws to ensure the growth of humans in harmony with technological developments.