Imagine this scenario.
Someone from another state sends you a bid request via email for about $50k worth of ink toner and promises that the winning bidder will get more business to come. In excitement, you put together a quote and email it back.
A few days later, you get the email you hoped for; you were selected! Your typical policy is to require 100% upfront payment, but the buyer says this is time sensitive and guarantees you’ll receive payment by month’s end.
You decide to side-step your normal payment terms because of the prospect of future business with this prestigious firm. The printer ink is shipped. You never hear from the buyer again.
What just happened?
You were a victim of social engineering fraud. You have cyber liability insurance, so you call your insurance carrier. They say they can’t help because you were a willing participant in the fraud. “Willing participant?!”, you think.
Traditional cyber liability policies often limit losses to fraud schemes that a business is unaware of and is not an active participant in the scheme. A social engineering fraud endorsement specifically extends coverage to include instances of social engineering fraud perpetrated by perceived vendors and/or clients.
Cyberstone recommends that companies contact their insurance provider today to discuss this potential gap in coverage.