Cyber Risk & Awareness

October is National Cyber Awareness Month and TIA is excited about Cyber Advantage Coverage provided by TIA Advantage Partner Roanoke Insurance Group Inc.

Did you know that the FBI has reported an 800% increase in reported cybercrimes since May 02, 2020? And that Phishing or Social Engineering attacks have jumped to 20,000+ per day in the US.

As a business owner you want to protect your assets and limit your exposure; one way of doing this is with Cyber Security Coverage as an additional layer of protection.

The following is an actual cyber incident a client reported to Roanoke. They have changed the names and details to protect their privacy. Unfortunately, their client did not carry cyber insurance at the time of this incident. They do now.

Michael Smith of Move It Fast Freight Forwarders received an email from one of their vendors in Germany asking for payment on a recent invoice. The email address came from someone that Michael had dealt with on numerous occasions, so he had no reason to be suspicious. However, in addition to the request for payment, the vendor informed Michael that they had recently opened a new bank account in Spain and instructed him to direct the payment to the new account. Michael sent several emails to the contact to confirm the bank details. Each time the contact confirmed yes, the details were correct. Michael sent the payment in the amount of $113,101.97 EUR’s to the new bank account.

Several days later, Michael received a call from the vendor asking about the payment due. That was the first evidence Michael had that he had been deceived. He discovered that he had fallen victim to a social engineering crime. Michael immediately asked the bank to recall the payment, but unfortunately too many days had past, and they were unable to help. The bank had done nothing wrong by transferring the money as instructed and was not liable for the loss of funds. To make matters worse, Move It Fast Forwarders did not carry Cyber Insurance, so they could not file a claim for recovery. Move It Fast had to absorb the entire six figure loss amount themselves. Cyber insurance would have responded to this loss and helped to make Move It Fast whole.

One of today’s challenge is protecting your business from becoming a victim of Cyber Crime. Through Roanoke Insurance Group Inc., TIA Members can access coverage which addresses exposures issues with the appropriate alignment of risk management strategies but at an affordable rate.

Join us for a conversation with Roanoke Insurance Group Inc. who is providing a FREE Cyberwrite Questionnaire to those who register for the TIA Services Presents Business Solutions Webinar: Cyber Risk & Awareness on October 14th from 2:00-2:30pm EST, a free members-only webinar.