The Insured hired a contractor to perform works on one of their properties. The Insured received an invoice for $13,000 from the contractor. The following week the Insured received an email claiming to be the contractor, stating that their bank details had changed and provided the new details. The Insured subsequently paid the $13,000 into the ‘new’ bank account. A few days later the contractor followed up the Insured for payment for their works at which time it was identified that their emails had been compromised and the Insured had paid a fraudulent account.
The Insured made a claim on their Cyber Policy and after conducting investigations, indemnity was granted under the optional Social Engineering Fraud cover. The Insured was reimbursed for the direct financial loss suffered as a result of the fraud.