Funds transfer fraud is a common type of fraud where an attacker redirects funds before or during a transfer. This is typically accomplished through social engineering techniques, sometimes stemming from email spoofing or even business email compromise.
In addition to redirecting funds handled by your employees, attackers will often take advantage of your reputation and relationships to convince your customers or vendors to send them money.
For example, a hacker might send an email from a lawyer or real estate agent’s system, instructing a client to wire money for the purchase of a home to them instead of the actual seller or title company. By the time the client realizes that they lost money, the funds will likely be long gone. And because the loss resulted from a fraudulent email from your network, they are going to demand to be made whole. Are you covered?
With Coalition’s Funds Transfer Fraud coverage, yes you are. We will pay the cost of legal representation, judgments, and settlements when a third party entity claims to have been induced to fraudulently transfer funds owed to a third party due to a security failure on your network.
Sub-limit may apply; Please read your policy for all coverages, terms, exclusions, and conditions.