As one of our company partners stated, “ An old con is a new threat.”
Our challenge is always how to get the message out about new risks to our clients. In today’s interconnected world, there are new challenges with “fraudsters” lurking in the anonymity of cyber space.
Social engineering fraud is when a “fraudster” deceptively gains the confidence of an employee or vendor and induces him or her to part with money, securities or goods. Fraud scheme can be difficult to detect and can result in a company handing over valuables to a criminal without even realizing it.
Social Engineering Fraud Coverage is now available to protect businesses from this type of event.
Here are a two important facts about this type of fraud:
- Companies can be victimized by anyone—even a trusted vendor can be the victim of a hacker who poses as the vendor, redirecting your next payment.
- Smaller companies often are more vulnerable to fraud because they may lack financial or wire transfer controls that larger companies may routinely employ.
Unfortunately social engineering fraud and scams are increasingly more common.
Herlihy Insurance Group suggests you review the types of Crime Insurance you have selected for your business and make sure you ask about this Social Engineering Fraud.
It’s up to you to keep your business fraud free!