Real Estate Agent
The Insured’s emails were accessed by a hacker who posed as the Insured and sent multiple emails to the Insured’s bank instructing for funds to be transferred into the hackers bank account. When the Insured discovered that 3 unauthorised payments had been made totaling $3,000,000, they immediately contacted their bank to freeze the funds. The Insured was able to recover $2,800,000 of the unauthorised transactions.
The Insured notified the insurer who appointed lawyers and an IT forensic consultant to assist the Insured in repairing the damage to their system which was caused by the hacker. As the Insured had the optional Social Engineering cover under their policy, they were reimbursed for the direct financial loss of the $200,000 uncovered fraudulent transfers as well as their forensic and legal costs.
The Insurer then issued separate recovery proceedings against the fraudsters to recoup the amount of the loss along with the Insured’s deductible.