Fraud insurance or crime insurance is essential to protect companies from losses resulting from crimes such as fraud, fraud and misappropriation by employees or third parties. With the growing threat of technological fraud, adequate protection is essential.
A real danger: the Ferrari case
Last week the news of the impersonation of the CEO of Ferrari was published through a phone call to a manager of the firm asking him to make a transfer for a “big acquisition” that the company was planning.
Through a deepfake tool they imitated their voice perfectly and only one question from the manager to the CEO (“What is the title of the book you recommended me to read?”) avoided the scam.
The AI’s Breakthrough in Corporate Fraud
With the advent of artificial intelligence, social engineering fraud is becoming more common and harder to identify. There are tools available to anyone who can imitate your voice and even your face in a team meeting.
In addition, chatgpt-type AI tools can write emails in any language imitating the usual type of communication between two people.
Why Buy Fraud Insurance?
Analyzing the potential danger that companies face, from O. Brokers we recommend to all our clients to take out, in addition to a cyber insurance policy, a fraud or crime insurance covering losses resulting from a crime (fraud, misappropriation, fraud, etc.) arson caused by an employee or a third party.
Major technological frauds covered by fraud insurance
The type of fraud which has been on the rise in recent years is the so-called external technological fraud:
– Impersonation (also called social engineering fraud or fraudulent instruction) is when you impersonate a person (by email or phone) requesting payment to a fraudulent account. They can impersonate a supplier by requesting payment from us or impersonate a CEO by instructing someone in the finance department to make a transfer as happened with Ferrari.
– Money transfer fraud occurs when we are impersonated in front of a financial institution or do what is called “man in the middle”, where communication between the bank and the company is intercepted.
– Online price modification: occurs when they have managed to breach the company’s systems and access the ERP or the web by changing the prices of the products that are on sale.
– Fraud in contracted services happens when they violate the credentials of an online service (e.g., cloud servers) and make an overconsumption at the expense of your company.
Fraud or crime insurance would cover losses arising from all the above situations. That’s why O. Brokers recommend it as a complement to the Cyber Risk policy.
In order to access fraud insurance, a number of procedures are necessary to minimise the risk as much as possible. Contact our team of experts to receive appropriate advice and a proposal with the right coverage for your company.
