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Cyber Crime Continues to Plague Banks and Bank Customers

Cyber Crime Continues to Plague Banks and Bank Customers (Trends, Reports, Analysis)

The reports confirm the increasing risk of Business Email Compromise (BEC)/Email Account Compromise (EAC) and significant losses caused by social engineering leading to fraudulent payments. Financial institutions can’t ensure customers install up-to-date defenses, but security awareness should be a constant focus in dealing with bank customers, especially those who originate wire transfers such as title companies and law firms, as well as those customers who typically pay vendors with a wire transfer. In addition to security enhancements, both financial institutions and their customers should ensure proper cyber liability coverage. To add more uncertainty, court decisions interpreting an obligation of an insurance company to provide coverage vary based on the type of policy — a comprehensive general liability policy, a crime policy, or specific credit for cyber insurance policy. With the increasing cyber risks and increasing potential liability and lost income, it is imperative to educate customers as to the risk of a BEC/EAC attack.

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