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Cyber Fraud Event - Claim Example

Written by DUAL | Jul 25, 2024 12:00:00 AM

 

Background

The Insured utilised a popular online accounting software platform for making/tracking the payment of both supplier invoices and staff payroll.

A regular supplier notified the insured that payment for a recent invoice had not been received.

The Insured investigated and discovered a Threat Actor was live within both Insured’s network and their account on the accounting platform.

The investigation revealed that the Threat Actor had planted a keylogger in one of the insured’s compromised computers and used this in conjunction with a malware called log watcher that automatically monitored transactions between $5,000 and $50,000.

Once a matching transaction was input by the Insured on the accounting software, the malware changed the destination bank details within the accounting software platform to those of the fraudulent account, diverting the funds. This process did not raise an alarm from either the accounting platform or the Insured’s bank.

Results

Indemnity applied to the misappropriated funds owed to the supplier as a Cyber Fraud Event – circa $30,000

The covered claim also mitigated threats from the supplier to take their business to the competition which could have led to the Insured ceasing operations as they were a critical supplier.

The claim also covered circa $100,000 legal costs for:

  • A PII review - to determine what if any personal information had been compromised by the unauthorised access
  • Notification to the OAIC under the Privacy Act
  • Drafting documents regarding a potential liability claim against the accounting software provider that did not ultimately proceed

 

For a full list of appetite and underwriting capabilities for Cyber Insurance, get in touch or contact on of your local DUAL underwriters