Social Engineering Fraud Insurance Explained

Social Engineering Fraud Insurance Explained

Are you covered for social engineering fraud? Fraudsters can invade organizations with even the best internal controls through social engineering fraud —misleadingly acting like a trusted vendor, new customer or worker and actuating somebody in the organization to part with large amounts of money.

Social Engineering Fraud – A Definition

Means a misrepresentation of fact or an intentional, malicious, wilful or fraudulent act undertaken by a third party that misleads an employee and directly results in any or all of the following:

• Your money, your securities or your asset being transferred, disbursed, paid, delivered, altered, corrupted or lost
• Money, securities or other asset of your customers or clients being disbursed, paid, delivered, altered, corrupted, or lost from an account that is in your trust or control

Most common claims involving social engineering fraud is an accountant (employee) of a company receiving an email from whom they believe to be a vendor advising that their banking information has changed and for the next payment to go to the new account. The accountant might not verify the information as the email seems to be from his trusted vendor and goes ahead with the payment to the new bank account.

Social engineering fraud coverage can be added to either a crime policy or a cyber policy.

An ALIGNED Advocate can provide expert guidance about fraud insurance as well as risk management best practices for your organization. Talk to one of our advocates today about how we can help you secure social engineering fraud insurance options and other insurance products, services and risk management solutions for your business.