CEO Fraud – Action Step Three!

Action is the cure to all business growth! As it is in security awareness training being proactive instead of reactive determines success of your data.

Contact your insurance company
FBI data shows that less than 4% of CEO fraud funds are recovered. Therefore, it is necessary to contact your insurance company to find out if you are covered for the attack. While many organizations have taken out
cyber-insurance, not all are covered in the event of CEO fraud.
This is a grey area in insurance and many refuse to pay up. Many that have reported CEO fraud to their insurer, find that this type of incident is not covered. Despite the presence of a specific cyber insurance policy,
the unfortunate fact is that no hardware or software was hacked. It was the human that was hacked instead. Insurance companies draw a distinction between financial instruments and email fraud. Financial instruments
can be defined as monetary contracts between parties such as cash (currency), evidence of an ownership interest in an entity (share), or a contractual right to receive or deliver cash (bond). Many companies are
covered in the event of a fraudulent financial instrument.

However, CEO fraud is often categorized differently. It is regarded by some insurance firms as being purely an email fraud and not a financial instrument fraud. In other words, it is being regarded in many cases as a matter of internal negligence or email impersonation as opposed to being a financial instrument matter. That said, there are dozens of carriers in the market providing up to $300 million in limits. Coverage extensions have developed to include both the third-party liability and first-party cost and expenses associated with a data breach or cyber-attack.

Next time…Action Step Four…till then “Think Before You Click”!

Tina Louise ~ http://www.Cloudplusservices.com ~ 888.871.6584

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