Here is a real-life example that proves Cybercrime is real and happening right here!

As we have been highlighting this month, Cyber Crime is on the rise. You never think it will happen to you, but we can assure you that it is real as we have witnessed our clients being impacted.  These malicious people are impacting businesses across the globe and we’ve recently had a number of our client’s experience forms of Cybercrimes and here is an example of one below:

Case Study: Social Engineering Fraud

Problem:
Our client received an email from the finance team of a supplier who provided a copy of an invoice relating to refurbishment works conducted at our client’s premises.  

Prior to payment, an unknown third person purporting to be the supplier, using what looked to be their email address sent an email to our client instructing payment of the invoice using amended bank details. Our client, in good faith, paid the invoice using the amended bank details.

Post payment of the invoice, our client then received notification from the supplier advising that they had suffered a security breach to their email account. The invoice that had been resent had incorrect and unknown payment details. Our client appropriately notified their bank, however, unfortunately, our client’s bank was unable to recover the money transferred. 

Solution:

Luckily, our client’s cover included Criminal Financial Loss including Social Engineering Fraud. 

Our client notified Rivers Insurance Brokers via their account broker and our claims team lodged a claim to the Insurer. We claimed that, as a result of the misrepresentation made by the unknown third person purporting to be the supplier that they suffered a loss in the $10’s of thousands of dollars and there was appropriate cover available.

Result:

The Insurer considered that there has been a misrepresentation made by a malicious fake person purporting to be the supplier which was believed to be genuine by our client. On this basis, the Insurer was satisfied that our client had transferred money as a result of Social Engineering Fraud and has suffered Direct Financial Loss. 

The insurer confirmed that cover was available for this loss subject to the excess applicable excess in the policy and our client received the funds so the invoice could be repaid.

Please note in the example above that each claim is different and outcomes may vary on a case-by-case basis depending upon the cover, facts, and details of the particular situation.

If you had any doubt this is a very real reminder that cybercrime is REAL.

If you would like to know more about this type of cover and what policies are available to you, please feel free to call our team who would be more than happy to discuss. https://riversinsurance.com.au/contact/