Social Engineering Fraud Insurance

I have said it often – the bad guys are good at being bad. Time to check your bank’s fraud-bond for an important new coverage, Social Engineering Fraud Insurance.

Social engineering fraud is a game of deception – the bad guys convince a bank employee to transfer bank funds pretending to be a bank officer, a board member, an employee, or a supplier.

Claim Example – A bank CEO goes on vacation to a wonderful resort. She is out of reach as far as bank employees know. She posts to Facebook just before she leaves. The bad guys see her post and figure out how to convince a bank employee that the CEO needs funds sent to an offshore account. The scheme can also involve suppliers demanding payment.

The problem with standard bank fraud-bond coverage is that funds transfer coverage is designed for loss of customer funds. The typical Social Engineering Fraud loss involves bank funds. The endorsement to the Fraud- Bond picks up this coverage gap.

Give me a call to discuss your bank’s insurance program. Let’s learn where the holes are in your insurance. Then, let’s plug them.