Social engineering is the art of manipulating people so they give up valuable information. Criminals use this tactic as it is easier to exploit the natural inclination to trust than to breach system security. Well known, but not well discussed, is the fact that the human-computer user is frequently the weakest link in the security chain. These ‘Business Email Compromise’ or ‘Confidence Scam’ are covered via Deceptive Funds Transfer Fraud section of your Cyber Liability policy.
This is a rapidly growing risk according to the FBI
– Scams are up 270% since 2015 (report dated April 8, 2016)
– Over 17,000 reports turned into the FBI accounting for over $2.3 Billion in losses
– Average loss value reported to FBI is $130,000!
If you have an interest in learning more about Social Engineering here is a link to a classic piece on the subject.
If you are a techie and want to learn how the bad guys actually do it click here.