business e-mail compromise

FBIThere recently has been a “dramatic rise” in the incidence of business e-mail compromise (BEC) scams, according to an April 4, 2016 alert from the Federal Bureau of Investigation (here). In these schemes, which are also often referred to as “social engineering fraud” or “payment instruction fraud,” scammers using official seeming email communications induce company employees to transfer company funds to the imposters’ account. According to the FBI, during the period October 2013 through February 2016, law enforcement agencies have received reports of this type of fraud involving 17,642 victims. Complaints involving these kinds of fraudulent schemes have arisen in every U.S. state and 79 different countries and amount to over $2.3 billion losses. As discussed below, these types of schemes are not only a growing concern, but they are increasingly the source of insurance coverage disputes, as well.
Continue Reading The Growing Risk of Payment Instruction Fraud and Related Insurance Coverage Problems