In Australia over the last few months, there have been a number of large claims whereby a fraudster was able to access the computer system of a supplier of goods, resulting in a loss to the insured.
The fraudster used that access to create fraudulent documents which were provided to the insured, who then paid money to the fraudster in reliance on those documents.
In the most recent claim, an Australian company was purchasing goods from a supplier in India. A fraudster hacked into the Indian company’s system and generated an invoice directed to the Australian company in the amount of US$260,000. The Australian company was expecting an invoice from the Indian company in that amount and so paid the invoice. All of the details in the invoice were correct except that the fraudsters had inserted their own bank account number.
The client had a Management Liability policy. The claim was not covered by that policy. Most Cyber policies have no cover for cyber theft.
If you are still unsure whether your policy covers this scenario speak to one of Insure 247’s brokers on 1300 046 787
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