Tips You and Your Customers Can Use to Prevent Fraud
Over the past two years, we have reported on several corporate deception fraud cases that have resulted in very large losses. Many of these cases involve a form of business email compromise (BEC) called “phishing” or “whaling” whereby the perpetrator creates fake emails, supposedly from the CEO or other company officer, instructing an employee to issue a wire transfer to a fake vendor or account. The FBI estimates that losses from BEC in the US alone totaled over $263 million in 2015.
What can you do?
Many times, the fake emails are created utilizing email accounts that closely mimic the company’s actual email address (i.e. using “.co” vs. “.com” or replacing “l” with “1”). Some companies are now tagging all incoming emails outside of corporate systems with an “EXTERNAL” label identifier at the beginning of the subject line. While the “EXTERNAL” identifier does not mean an email is even suspicious – it is intended to assist employees in identifying and avoiding potential scams. As part of your risk management advice to your customers, you might want to consider suggesting this type of action.
Additionally, your clients should:
Know their business partners and develop a healthy level of skepticism in financial dealings
Develop policies and procedures to prevent or mitigate one person from having too much influence
Check out the FBI’s best practice guide for thwarting BEC
It is not a matter of “IF”, it is a matter of “WHEN”
Con-artists are using today’s technology to prey on the weakest link in companies – employees and their willingness to trust. Make sure your clients purchase Corporate Deception Fraud coverage as part of a comprehensive Commercial Crime Policy from Berkley Crime.
Corporate Deception Fraud coverage protects your clients from losses brought about by external fraudsters who dupe their employees into paying them.
Primary limits up to $5M; Excess limits up to $10M
No conditions precedent to coverage
Broad parameters of who the fraudster can purport to be; vendor, customer or employee
Easy application process
Focused underwriting staff to help you understand and communicate exposures and coverage
Make Sure Your Clients Have the Right Controls in Place and the Right Insurance to Cover Their Corporate Deception Fraud Needs
Call Berkley Crime today, we’ll help you and your clients get the right coverage, quickly.
Experts focused on your protection.
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