Acadia Insurance Announces Social Engineering Fraud Coverage for Businesses
Company sees an old con emerge as a new threat
WESTBROOK, Maine (June 20, 2016) – Acadia Insurance, a W. R. Berkley Company®, announced today that it has added a new insurance coverage option for mid-size businesses in the Northeast called Social Engineering Fraud Coverage.
Social Engineering Fraud Coverage insures against loss resulting from an employee being deceived into transferring money, securities or other property by someone impersonating an employee, customer or vendor of the insured. Thieves may contact employees by phone or email and trick them into providing sensitive company information or paying a fraudulent bill by transferring funds to the thief’s account. This type of loss is often overlooked and occurs when thieves take advantage of the helpfulness and kindness of employees.
“Phishing and social engineering attacks are a growing risk for companies of all sizes,” said David LeBlanc, CPCU, senior vice president, chief underwriting and marketing officer, Acadia Insurance. “The sums of money stolen can add up to create a significant risk, specifically for small to mid-size businesses. This damage can often go unnoticed for weeks or even months, and the funds are typically difficult to regain.”
Research done by Verizon® has shown that 29 percent of data breaches are caused by social engineering tactics, and a successfully implemented scam could cost a large company upwards of $2.4 million according to a Kapersky Lab study.
Consider this scenario:
Jim manages a gift shop specializing in mail order cheese gift sets. He has a contract with Sue to send holiday gifts to the employees of her business. Jim receives an email from Sue to ship 300 gift sets worth $10,000 to a new business address. When Jim calls to ensure the gift sets met her needs, Sue tells Jim she hadn’t sent the e-mail or made the order. An imposter has hacked Sue’s e-mail account to send Jim the fraudulent order, and the gift sets were now in the hands of thieves.
Social Engineering Fraud Coverage is available as an optional addition to Acadia’s crime coverage. Varying coverage limits are available depending on the specific needs of each policyholder.
The Closer Coverage Advantage
Social Engineering Fraud coverage and Acadia’s crime coverage are both backed by Acadia Insurance’s Closer Coverage commitment that includes:
- Educational and information tools that help policyholders understand how they can reduce the risk of social engineering fraud and help prevent future losses.
- A collaboration between both the policyholder and agent that allows for superior claims service. Acadia claims representatives are knowledgeable, experienced and part of the community. They are committed to prompt, on-site claim handling for critical claims – 24 hours a day, seven days a week.
- A strong commitment to its policyholders. Since 2015, nearly 20 percent of customers had already been with the company for more than a decade.
To learn more about Social Engineering Fraud and how you can protect your business, please contact your local Acadia insurance agent. To find an agent near you, visit www.acadiainsurance.com.