Social engineering is a manipulation technique that exploits human error. The victim is duped into providing, in most instances, money. The money is not being stolen, you are voluntarily sending it!
Lately, we have seen instances in which insureds are receiving an invoice from a vendor with banking information that isn’t their own. Payments are being made to the bad actor and are very difficult to recover. Since the money wasn’t stolen, it’s not a covered claim under a Crime/Employee Dishonesty policy.
As we see a rise in these types of claims, it’s more important than ever to remain vigilant. If something looks suspicious, it’s always good practice to double-check by calling the party, especially when paying an invoice or dealing with sensitive and confidential information. These days, hackers can send out emails from a current/legitimate email address, so emailing them may just be falling into their trap.
As always, we recommend having a Cyber Liability Insurance policy in place. Please click here for a free quote and click here to download our free resource guide, Cyber Security and What Community Associations Need to Know.
