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Cyber Extortion Involving Medical Clinic

April 05, 2023

Cyber Extortion Involving Medical Clinic
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We hear about healthcare-related cybercrime so frequently that many healthcare providers may tune it out or think that it couldn't happen to a practice like their own - but it can and did. A LAMMICO-insured medical clinic sustained a cyber extortion event, involving the ransomware variant Zepplin, resulting in the encryption of six of its servers, including its back-ups. The clinic lost access to all patient records and immediately notified LAMMICO and cyber insurance agency, Tokio Marine HCC – Cyber & Professional Lines Group (TMHCC). The clinic's cyber insurance ultimately paid a total of $176,000 in expenses. Download the full claim scenario from TMHCC here.

This cyber extortion event highlights the importance of having the appropriate MEDEFENSE™ Plus/Cyber Liability insurance coverage for your practice. LAMMICO includes $10,000 of MEDEFENSE™ Plus/Cyber Liability coverage in most provider policies at no additional charge to the insured. We also offer higher limits of protection through our subsidiary agency, Elatas Risk Partners, subject to underwriting which will include questions that hone in on two-factor authentication and backup processes and procedures. Please contact Carly Thames, Elatas Account Executive, at or 225.906.2062, for information about higher limits of Cyber Liability insurance. For more information, visit

Resources to Mitigate Cyber Risk
In partnership with our cyber risk experts, Tokio Marine HCC – Cyber & Professional Lines Group, LAMMICO offers our insureds complimentary access to TMHCC CyberNET®, the most advanced cyber risk management solutions inclusive of incident response plans, compliance and training materials as well as information addressing latest trends in data breaches and cybercrime. Registered Members are encouraged to log in and access the CyberNET® portal.

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