With the growth of technology and business communication over the Internet, hackers can gain access to private information in an easier way and use it in an attempt to trick companies into sending them money. Recently, there has been an increase in losses resulting from “Social Engineering Fraud”, also referred to as “Cyber Deception” or “Spear Phishing”. These financial losses are the result of an insured being tricked into paying a fake invoice, or wiring funds to a fraudulent account. Often these requests, or invoices for payment, mimic actual clients or vendors, and can contain authorizations from familiar email addresses. Unfortunately, these types of losses are not covered under standard “theft” or ”crime” coverage, since the funds were willingly released by the insured. Only a few carriers have developed a specific coverage endorsement for crime losses resulting from these types of deception. Chubb and Hartford are two carriers offering Social Engineering Fraud coverage. This coverage can insure these financial losses, including:
- Vendor or supplier impersonation
- Executive impersonation
- Client impersonation
These requests for payment can look authentic and trustworthy leading to loss. Coverage and price can vary based on type of business, security practices, and type of policy. Call us today, (352) 371-7977, to see if your business qualifies for coverage and if it is necessary for you to purchase protection.