An indemnity to insureds in respect of financial loss directly resulting from transferring money as a result of an employee’s good faith reliance on a fraudulent instruction.
Cover can extended to include loss of money/securities/property belonging to any other individual or organisation, which is in the care, custody or control of the insured.
Fake President – senior employee within the business receives an email that seems to be from the regional CEO requesting a large transfer of funds to a third party to facilitate a business transaction. The email seems genuine so the payment is made. Upon further investigation, it is determined that the email address has not originated from the CEO’s account, which is confirmed when the CEO is told about the transaction. The funds have already been transferred and cannot be traced generating an insurance claim.
Fake Supplier – An employee within the accounting department receives an invoice from a procurement manager via the post on letterhead paper requesting that an enclosed invoice is settled immediately. It is subsequently discovered that the letter, supplier and account have been set up fraudulently.
Mandate Fraud – A request for payment of genuine invoices is received from a trusted supplier, however they call to request that payment is sent to an alternative account. The change of account details is followed up with confirmation on letterhead paper which has been fraudulently copied and signed. The genuine supplier later requests payment and the fraud is discovered.
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