The differences between cyber and crime insurance are not well understood by many. You might be asking yourself “are social engineering attacks covered under insurance? Let’s find out!
It is possible for the coverage of both fund transfer fraud and social engineering fraud to be obtained through both crime insurance and cyber insurance. SO what is the difference between the two?
Cybercrime/Fund transfer fraud that is traditionally found on a crime policy, involves a malicious system attack or hack that enables the attacker to use banking information to transfer funds. This oftentimes involves a hacker attacking a network and stealing usernames and passwords. The hacker then uses that information to transfer funds out of a target bank account. By the time you’ve found out, it’s most likely too late.
Social engineering fraud which involves deception, impersonation, and fraudulent instructions is when a party impersonates an individual or a company through fraudulent emails to deceive you into giving away private information or funds via wire transfer fraud.
This is often called ‘voluntary parting of the title’ and is not covered by a fund transfer fraud insurance agreement. These social engineering attacks are often referred to as business email compromises or phishing attacks.
In summary, fund transfer fraud involves a malicious hack. In contrast, social engineering crime happens when the insured is tricked into transferring funds.
Even if both cyber and crime markets can offer crime coverage, there may be differences in the language. Things like attachment points, coverage triggers, different definitions, and different claims handlers managing the claims.
At The Bunker we are ready to help you move your business from danger to a safe place, click here to schedule some time to work with us!