Funds Transfer Fraud Has Increased 35% Since the Onset of COVID-19 ssn24me, approvedccsu
With reported losses from thousands of dollars to well over $1 million, funds transfer fraud represents 27% of cyber insurance claims in 2020.
The bad guys are in search of one thing and one thing only – figuring out a way to make money. Some go the ransomware route and others steal data and sell on the dark web. But, according to cyber insurer Coalition’s H1 2020 Cyber Insurance Claims Report , the interest in funds transfer fraud has not only grown since COVID started, but has also increased 35% this year over 2019.
Nearly a third of the funds transfer fraud-related cyber insurance claims (29%) came from the Consumer Discretionary sector (which includes automotive, household durable goods, textiles & apparel and leisure equipment – among others), with Financial Services in second place.
According to the report, 45% of cases were unable to recover the funds transferred, demonstrating the importance of catching the fraudulent activity early on. In cases where the fraud is detected quickly, 84% of funds were able to be recovered.
Coalition point out that most funds transfer fraud claims involve the following social engineering techniques:
Users that are involved in any way with your organization’s finances should undergo new school Security Awareness Training to educate themselves on how the bad guys attempt to fool them, what real-world scams look like, and steps they can take to keep from being the next victim.
Would your users fall for convincing phishing attacks? Take the first step now and find out before bad actors do. Plus, see how you stack up against your peers with phishing Industry Benchmarks. The Phish-prone percentage is usually higher than you expect and is great ammo to get budget.