The Risks of Social Engineering Fraud

While cyber liability losses and privacy claims continue to rise, a new exposure has arisen. Hackers have determined that due to the increased sophistication in computer security, it may be easier to manipulate an individual rather than a machine. With enough policies and procedures in place, Social Engineering Fraud (SEF) is preventable. However, what these professional criminals are counting on is being able to manipulate an employee to violate the company’s policies. While insurance carriers are continuing to develop responses to the risk or create a product to cover it, SEF and other emerging losses continue to evolve.