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Cyber Crime, Claims Advocacy
One of IBTX’s manufacturing clients became a victim of an online crime fraud called Fraudulent Impersonation. Because the insured’s primary form of contact with their China supplier was via email, nothing appeared out of the ordinary when they received wiring instruction from their regular contact informing the insured that “We have changed banks.”
However, the Chinese supplier’s email system had been hacked, and the hacker was now impersonating the contact. The $38,000 in funds was moved to the new bank, ultimately, into the cyber criminal’s hands.
When the insurance carrier initially denied the claim, IBTX claims and coverage team combed through the policy wording. Eventually, IBTX found the contract language to be broad enough to include this type of claim. They insisted on a more formal declination from carrier Claims Counsel, and Counsel agreed with the IBTX interpretation, paying the claim in full.
Effect of Solution
The client’s $38,000 was returned and reallocated to other company needs.