Section A: Funds Transfer Fraud
- This section addresses coverage for unauthorized funds transfer, theft of corporate credit cards, fraudulent manipulation of documentation, phishing, vishing and other dreaded SOCIAL ENGINEERING attacks.
- Example: A hacker can pose as a CEO or another high level executive via email and trick the CFO into sending a wire transfer of $50,000 to what “looks like” a current client. This is extremely common and every business should heavily consider this exposure when buying a cyber policy.
Section B: Theft of Funds Held in Escrow
- This section addresses coverage for a criminal committing electronic theft to a bank account held by you on behalf of a third party.
- Example: A third party steals money from a trust account that was being managed by a law firm.
Section C: Theft of Personal Funds
- This section addresses coverage for the theft of money or financial assets from a personal bank account of a senior executive officer, including identity theft resulting from a privacy breach.
- Example: A hacker breaches the company’s network and monitors the activity of the Senior Executive Officers. Since the SEO accesses his personal online bank account while at the office, the hacker is able to gain his login information and steal his funds.
Section D: Extortion
- This section will address coverage for reimbursement if someone threatens to prevent you from accessing your system, introduces a virus, reveals private info and/or damages your brand.
- Example: Ransomware – An employee walks into his/her office in the morning and there is a message on the desktop that says access is denied to the system unless X amount of money is paid.
Section E: Corporate Identity Theft
- This section addresses coverage for the fraudulent use or misuse of your electronic identity including establishment of credit, electronic signing of a contract, or the creation of a website designed to impersonate your business.
- Example: Someone hacks into a businesses’ system, discovers sensitive personal information like social security numbers and opens fraudulent lines of credit.
Section F: Telephone Hacking
- This section addresses coverage for a hacking attack that affects your phone system including the cost of unauthorized calls or use of your bandwidth.
- Example: The Voice Over Internet Protocol (VOIP) system is hacked and expensive calls are made to a specific number that the hacker set up in the middle of the night and in turn, the victim has to pay a telephone bill for $10K.
Section G: Fraudulent Communications
- This section addresses coverage for creating a press release, reimbursing your customers for financial loss, your direct loss of profits, or costs associated with removing a fraudulent website due to someone impersonating you through a website or electronic communication.
- Example: Customers get an email advertisement promoting an attractive holiday sale that they believe is coming from a valid business, so they click on the link. Only afterwards is it discovered that the email and website link were actually the work of a third party that set up fake correspondence/website to scam customers. These customers have now spent money on this fake site, which has nothing to do with the valid business. This section covers the cost of reimbursing customers and any lost profits the business experiences following the scam.
Note: this information is presented for your convenience, but in no way does it alter the actual contract(s) of insurance. For coverage details, please refer to the policy(ies) for actual language and in the event of conflicting statements, the policy conditions supersede this.