Combating Social Engineering Fraud One Step at a Time.

The article focuses on social engineering fraud, a form of cybercrime where fraud actors manipulate individuals or employees into divulging confidential information or authorizing fraudulent transactions, often resulting in significant financial losses for individuals and corporations. It outlines common schemes such as business email compromise, phishing, vishing, smishing, and the use of deepfake technology, illustrating these with real-world examples and recent case law involving companies like SJ Computers and Interstate Removal. The article also discusses the complexities of insurance coverage for social engineering fraud under crime and cyber policies, highlighting that coverage is often limited by policy definitions, exclusions, and adherence to internal verification procedures. Finally, it offers practical recommendations for businesses to mitigate risks, including employee training, verification of payment instructions through trusted contacts, use of multi-factor authentication, and maintaining updated security protocols. [Extracted from the article]