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Your Cybercrime Insurance Policy May Not Cover You For Social Engineering Fraud
6th December 2017
Cybercrime fraud caused by social engineering fraud may NOT be covered by cybercrime insurance. Social engineering is a tactic being increasingly used by the cyber criminals targeted at company employees that one would hope IS covered!
 

This appears to be the position with cybercrime insurance policies throughout the World and not just here in the UK. A good example of this popped-up in Canada a couple of weeks ago at a court case in Alberta, Canada, where is was confirmed that coverage for social engineering under a crime policy for ‘Funds Transfer Fraud’ applies only when the fraudster implements the transfer without the knowledge or authorization of the insured company’s employees, according to the firm of lawyers involved.

Endorsements are available for covering social engineering fraud, but brokers will need to ask the right questions to be sure that where this type of cover is required that it is indeed given. Some social engineering scams are more than likely not covered as part of a standard cybercrime insurance policy for ‘Funds Transfer Fraud.’

Cover may NOT be given when employees are tricked

Insurance protection may not be given if the insured company’s employees knowingly make the fraudulent transfer without being aware that they have been tricked.

Now that cybercrime insurance policies are beginning to be sold in greater numbers, organisations need to be sure that the cyber insurance they buy is really going to give them the protection they need and expect.



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