We are seeing more and more incidents where criminals are targeting businesses with electronic crime, whilst in the past some of these have been pretty basic attempts they are now far more professional and they are getting results.
There are a number of recent examples where the criminals have hacked into a system and then monitored internal email traffic, particularly around any large payments due to be made. An email will then arrive in the Finance Director's Inbox, purporting to be from their Managing Director, or one of their suppliers, or customers providing revised bank details for the payment to be made into. They clone the same email sign off and follow the communication style of the sender, gleaned from monitoring of previous email traffic. These have fooled many experienced finance people and therefore everyone needs to be on their guard. An easy way to avoid getting caught is to build in verbal verification into your procedures, just a quick call to check the details with the sender of the email.
Extra diligence is needed in these circumstances as well as a review of systems in place to avoid such a scenario happening to you. It is possible to buy insurance protection for such circumstances, this is called Crime Insurance. This is not the answer to the issue but it does provide some recompense where losses are suffered. Many of these policies do have verification conditions therefore it is important to ensure that you comply with these in order to be able to claim under the cover.
Crime cover tends to go hand in hand with Cyber Liability which can be purchased to cover data breaches, including such incidents where data is copied or taken and a ransom is sought, unfortunately these incidents are also becoming more common. We have prepared previous Bulletins regarding Cyber Liability and these can be found on our website www.dunsbyassociates.co.uk but please speak with us if you require any further information.
The world has changed for the criminal and it is clear they are turning their attention to electronic crime, please speak to us if you require any further information or have any questions regarding you existing cover.