Knowledge-based authentication systems similar to what Obamacare marketplaces will be using have been hacked with data stolen and resold online. These systems ask a series of questions, like parent’s middle names, to verify a user’s identity. But since such data has already been stolen from data brokers, it could be used to fake identities on Obamacare marketplaces.
A service that sells personal data to identity thieves has been getting its wares from hacked data brokers storing information similar to what Obamacare marketplaces plan to use, setting the scene for fraudsters to collect government subsidies.