Cybercrime by wire fraud – what’s covered?
Perhaps the only thing worse than falling victim to a business email compromise or “CEO fraud” that results in millions of dollars in wire fraud theft – is wondering whether your insurance will cover any of the loss.
Take Ubiquiti Networks Inc., for instance. The networking firm disclosed in August that cyber thieves recently stole $46.7 million using a growing scam in which cyber criminals spoof emails from executives at their company in a bid to initiate unauthorized international wire transfers.
The San Jose-based company said it discovered the fraud on June 5, and that the incident involved employee impersonation and fraudulent requests from an outside entity targeting the company’s finance department. The funds were then transferred by a company subsidiary incorporated in Hong Kong to other overseas accounts held by third parties.