In this series of blogs, we’ve explored the major risks that the professional service industry faces, as well as the notification laws that apply to these Indiana businesses. Suffering a cyber-attack is the worst-case scenario, and taking proactive steps to mitigate your responsibility and financial obligation in the wake of disaster is the first step in sustaining your business. How do you achieve this? First, obtain an Indianapolis Cyber Liability Insurance policy. Next, include a social engineering fraud component to cover all of your potential breach angles.
What is social engineering fraud?
This type of attack occurs when an employee unknowingly provides financial or confidential data to an unauthorized individual. This could include sending money and altering a payment online per the request of a hacker via email, phone, or even a fax.
How it happens.
Hackers can access email threads between vendors and clients, posing as a legitimate customer. With this, they can easily replicate their customized signature or letterhead to make a request. Hackers have even gone so far as to redirect the verification call to their intended phones to validate the phony request. This is very common and easy for hackers to achieve, putting your business and its employees more at risk for falling victim to a scheme.
Travelers explains that 1 in 2 small businesses have been a victim of social engineering fraud, compared to the 5 in 6 large companies that have experienced it.
Protecting your business.
Even well-managed businesses with proven best practices of employee training, partner background screenings and financial checks and balances can be infiltrated. Fraudsters can gain the confidence of an employee by posing as a vendor, supplier or client and instructing him or her to divert money.
Even with the right protocols in place, mistakes happen. In this scenario, the mistake could end up costing thousands (if not more, depending on the severity of the breach). Protecting your business starts with the right insurance.
About Walker & Associates Insurance
If you’re not sure if your insurance is sufficient, it’s smart business to have your risks evaluated by professionals you can trust. Since being founded in 1960, Walker & Associates has embraced a “service is first” philosophy. Our team is focused on ensuring that each client receives individualized guidance to preserve their assets and control their expenses. Our strong relationships with international, national, and Indiana insurance companies allow us to negotiate the best coverages, terms, and pricing for our clients. Contact us at Walker & Associates Insurance, (800) 213-7126, for all of your business and personal insurance needs.