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Coalition is a cyber insurer. The company recently released its 2022 Cyber Claims Report. In the report, Coalition talks about fund transfer fraud (FTF) and how it’s increasing at an exceptionally rapid rate.
From 2020 to 2021, FTF frequency jumped 21% for companies with less than $25 million in annual revenue. For those with income of $25 million to $100 million, revenue jumped almost three times that to 68%.
The overall increase — on average — is 69%.
Coalition’s report says the tactics used to get into company books to do the fraudulent transfers is via phishing and business emails designed to look official. Once the criminals get access to the business accounts from those sources, they can easily manipulate contracts or payment schedules without arousing suspicion.
These same criminals also use false payment instructions from customers or vendors.
In the first half of 2021 losses were averaging $388,000. The second half saw a bit of a drop to $347,000. That’s not really good news since it’s 78% above the loss average of 2020.
The company offered some advice you might want to share with your small business clients — and maybe follow yourself.
As soon as fraud is detected, notify your bank and request a reversal of the transfer File a claim Report the theft to the FBI’s Internet Crime Complaint Center Report the theft to local police Keep tabs with the bank and the status of the recovery of the money transferred
Source link: PropertyCasualty360.com — https://bit.ly/37fAu6j |
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