Social engineering fraud (SEF) is a growing problem that can have serious consequences. SEF happens when cybercriminals assume the identity of a trusted individual in order to deceive people into providing confidential, personal information or property.
As discussed in our latest Insurance Shield, plans’ existing insurance may not cover SEF. There have been several lawsuits challenging insurers’ denials of claims related to SEF. The rulings have been mixed.
New SEF coverage for plans has only been offered since early 2017 in the form of an endorsement to the plan’s existing fidelity bond. More recently, for some carriers, SEF coverage has become part of the fidelity policy in lieu of adding an endorsement.
To see past issues, visit the Insurance Shield archives page.
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