Tech-Enabled Fraud: Addressing Insurance Coverage Pitfalls in Third-Party Attacks
Bad actors are continuously looking for weak links to exploit in financial ecosystems. With cybercrime on the rise and attacks on third parties a reality that financial entities must prepare for, finding ways to protect their assets from insurance coverage pitfalls is essential.
But this isn't always easy or straightforward. Financial institutions and vendors that provide financial services to these institutions often have interdependent business operations, which can make it challenging to determine whose insurance and what type of coverage will respond to an impersonation fraud event targeted at asset managers, custodians, administrators, and their clients.
Losses from technology-enabled fraud can be substantial and involve more than one organization. Financial institutions should take a close look at any relevant policies they and their vendors purchase to ensure they provide appropriate coverage for otherwise covered losses caused by technology-enabled fraud. Risk professionals should also work closely with their brokers and insurers to identify and address potential coverage gaps and exclusions and make certain that all relevant policies are aligned.
Marsh's Financial Institutions FINPRO Center of Excellence is committed to developing risk solutions and services to help you manage your critical risks and ultimately make you more successful. Across all sectors of the financial industry, we can deliver technical expertise, knowledge of legal and regulatory trends, specialized claims advocacy services, and deep access to insurers — all to help you develop and implement a risk management program tailored to your risk issues.