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Cyber Update: Email Scams & Cyber Fraud

By CIEEM Insurance Services News
27.10.15
Magnifying Glass - MFL News

Whilst you will by now be very aware of the nature of several ‘cyber’ frauds aimed at larger businesses, the latest of which, Talk Talk, is now in the public domain and may of course have a direct impact on many of us individually as customers of that business, we at CIEEM Insurance Services are aware of cyber fraudsters turning their attention to smaller companies.

Evidence would appear to point to the fraudsters finding smaller firms an easy target, one which having been successfully breached, will highly likely be the victim of a repeat attempted fraud.

Of the more common attacks, we see some businesses falling victim to an e-mail scam which has seen them transfer significant sums of money to bank accounts set up by fraudsters.

The scam typically involves a request for an urgent payment to be made outside of normal payment protocols, often stressing a level of urgency, for example to secure an important contract.

Very straightforward and easy to spot you may think. However, we would stress caution here. The daily pressures of running a business all too often are leading to the fraudster being successful – the fraudsters use software to manipulate the appearance of an e-mail to include the sender’s genuine e-mail address which allows the fake email to appear in the recipient’s inbox as it would normally.

The e-mails may state that they have been sent from a smartphone or tablet and the criminals often hack the e-mail account of a senior member of staff to perpetrate the fraud.

Such losses are generally not insured by traditional insurance contracts. However the insurance market is reacting to such risks and it may be possible to arrange cyber insurance to protect your business from such exposures.

To complement this, you might already be considering the Government’s ‘Cyber Essentials’ accreditation, which, for those firms already having achieved for example ISO27001, is we understand relatively straightforward.

More to follow from ourselves in this regard very shortly, but in the meantime it is essential you have sufficient safeguards within your own systems to prevent a successful attack in the first place. CIEEM Insurance Services will look to work with you in providing practical, valuable assistance and advice in securing suitable management of the risk combining insurance solutions alongside the security solutions you will no doubt be looking to implement if indeed these are not already in place.

If you would like to discuss this any further please contact your usual CIEEM Insurance Services adviser.

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