Cybercrime: Manufacturing Company Recovers $21,000 in Social Engineering Fraud Case
An employee at a large manufacturing company unknowingly transferred $21,000 in response to a deceptive email posing as their company's president. Shortly after, a second fraudulent request for $98,000 further exposed the phishing scam.
Hylant's team of experts processed insurance claims for both incidents and strengthened the company's cybersecurity protocols.
![Cybercrime Manufacturing Company Recovers 21000 in Social Engineering Fraud Case](https://d17bk204pscq9b.cloudfront.net/Composites/_984xAUTO_crop_center-center_none/Cybercrime-Manufacturing-Company-Recovers-21000-in-Social-Engineering-Fraud-Case.png)
Challenge
An employee at a large manufacturing company received what appeared to be a routine email from the company's philanthropist president. It included a request for a $21,000 wire transfer to the accounting department. Emails were exchanged between the accounts payable department and the email sender, and the funds were ultimately transferred.
Three weeks later, a similar request was submitted, this time for$98,000. Accounting advised the CFO, who called the president to confirm the request. The president said she had not sent the request. When the CFO asked if she had sent the prior request for $21,000, the president said she knew nothing about it.
Solution
Hylant was informed of the fraudulent activity, which also was reported to the FBI and local authorities. Fortunately, one week prior to the discovery, we had negotiated coverage for "social engineering" losses as part of the company's renewal program.
We reviewed the policy for coverage. Although the crime had occurred two weeks prior to the renewal policy taking effect, the fraud was discovered five days afterward. By negotiating an appropriate "Discovery Date" within the renewal, we were able to ensure the claim could be filed under the new policy. The claim was reported to the carrier, and the $21,000 was paid to the manufacturing company within a week, less the deductible.
According to Forbes, social engineering attacks are used in more than two-thirds of all hacking incidents. Yet typically, social engineering coverage is not included in crime policies and is only available through a handful of carriers. This emphasizes the importance of working with a broker with expertise in risk management solutions.
Hylant specializes in providing unique risk management protection options for large corporations in a variety of emerging risks, such as social engineering.
Results for the Client
$21,000
Claim reimbursement secured
Protection
The value in working with a partner who has the expertise to help you anticipate and prepare for risks before problems arise.
Trusted Advisors
Hylant team members are ready to advise you and help you confidently address your needs.
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