Following the sale of 2 properties, the Insured was required to make a payment of $400,000 to their property consultant. On the day the payment was due, the Insured received an email from the consultant advising their banking details had changed. The Insured requested that this be sent to them in writing on the consultant’s letterhead which they received, including the signature of the director of the consultancy company. The Insured was later chased by the consultant for payment at which time it was discovered that the email and letter had been fraudulent. The Insured contacted their bank to stop the payment and were informed that the money had already been withdrawn and transferred overseas.
The Insured made a claim on their Cyber policy which triggered the optional Social Engineering cover. An IT forensic consultant was appointed who identified that the hacker had infiltrated the consultants system and intercepted correspondence between the Insured and the consultancy firm. The Insured was reimbursed for the outstanding funds (capped at the Social Engineering sub limit of $250,000).