News & Insights

Case Studies: Combating Credit Card Fraud

May 31, 2017

Case Studies: Combating Credit Card Fraud

In this edition of LAMMICO Weekly, we highlight two case studies regarding credit card payment risks. Both instances are summaries of real claims fielded by NAS Insurance, the carrier covering LAMMICO policyholders with Medefense™ Plus/Cyber Liability insurance. The below scenarios are examples of the types of claims and associated costs commonly seen in the healthcare industry but do not represent a comprehensive explanation of any one particular claim.

It’s not all bad news, though. LAMMICO presents practical options for policyholders who wish to take a more proactive stance on credit card processing safety.

Case One: Employee Steals Patient Identities and Credit Card Information

An employee of a doctor stole the identities of multiple patients and made credit card purchases with the stolen information. The doctor became aware of the breach when the employee was arrested. Local and federal law enforcement later advised the doctor that the identities of 5 patients and approximately $10,000 had been stolen by this employee.

Two of the patients filed a lawsuit against the doctor in connection with the identity theft. The patients alleged that the doctor failed to prevent the unauthorized access of their credit card information. The patients sought compensatory damages and emotional distress damages.

Defense costs totaled $25,000 with a $20,000 settlement.

Case Two: PCI-DSS Assessment Fines for Failure to Secure and Comply

A physician’s office accepts credit and debit card payments from patients. The credit card company notified the doctor that several of his customers had reported fraudulent credit card purchases, and the credit card company’s investigation revealed that the security breach originated from the physician’s point of sale system. The investigation further concluded that the medical practice did not have the required security controls in place to secure card data and subsequently issued fines against the doctor for failure to comply with Payment Card Industry Data Security Standard (PCI-DSS) guidelines. The physician’s cyber liability insurance covered the cost of fines levied by the credit card company.

Combat Credit Card-Related Claims

We take medical professional liability seriously at LAMMICO, but we also protect our policyholders in other ways. That’s why LAMMICO includes Medefense™ Plus/Cyber Liability insurance in most policies and offers the option to purchase higher limits of protection through our subsidiary agency, Elatas Risk Partners. This insurance product covers both of the above scenarios.

We know that to avoid a breach or a claim in the first place, healthcare professionals must be proactive in their self-protection. That’s why LAMMICO makes it easier for medical practices and facilities to comply with PCI-DSS guidelines.

Through Elatas, we have secured a program for our policyholders with Professional Solutions Financial Services (PSFS), our trusted source for credit card acceptance solutions. As a part of their program, you have access state-of-the-art processing equipment and all the tools necessary to become and remain PCI-DSS compliant in your facility to further protect against fraud and cyber liability.

To help get LAMMICO policyholders started on a path toward compliance, PSFS is offering a special incentive and the opportunity to see if you can save money on processing rates and fees. When you act by August 31, 2017, you’ll receive:

  • A no-obligation savings comparison and $100 if PSFS can’t save you money
  • A $100 sign-up bonus if you switch and start processing with PSFS
  • New state-of-the-art PCI-DSS compliant processing equipment so you can accept chip cards and other forms of contactless payments such as Apple Pay®, Android Pay™ and more.

To request your quote/comparison, $100 sign-up bonus and no-cost terminal and learn more about the PSFS card acceptance program, please visit or call 1-800-970-5060, ext. 5367.

For inquiries about your Medefense™ Plus/Cyber Liability insurance, contact Carly Thames, Customer Relations Specialist, at 225.906.2062 or

A two-year contract is required to receive the new equipment to use at no additional cost and $100 sign-up bonus, which will arrive 2-4 weeks after you begin processing. An early termination fee applies. $100 will be paid as a gift card to be used wherever major credit cards are accepted. Professional Solutions Financial Services is a registered trademark and a division of NCMIC Finance Corporation, which provides the credit card processing directly to you. Other trademarks listed within are the property of their respective owners. NCMIC Finance Corporation and Elatas Risk Partners, Inc. are separate companies, are not agents of one another, and have no authority to bind one another to financial or other contractual obligations.






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