{"id":17,"date":"2026-10-30T12:21:30","date_gmt":"2026-10-30T18:21:30","guid":{"rendered":"https:\/\/www.seraphrisk.com\/blog\/?p=17"},"modified":"2026-10-30T12:21:31","modified_gmt":"2026-10-30T18:21:31","slug":"business-email-compromise-how-social-engineering-fraud-coverage-works","status":"publish","type":"post","link":"https:\/\/www.seraphrisk.com\/blog\/business-email-compromise-how-social-engineering-fraud-coverage-works\/","title":{"rendered":"Business Email Compromise: How Social Engineering Fraud Coverage Works"},"content":{"rendered":"

Business email compromise has become one of the most damaging forms of cybercrime for businesses of all sizes. The FBI’s Internet Crime Complaint Center consistently reports it among the costliest types of online fraud. Criminals trick someone inside the business into sending money or changing payment details, and insurance doesn’t always respond the way owners expect.<\/p>\n

Common Social Engineering Schemes<\/h2>\n\n\n\n\n\n\n\n
Scheme<\/th>\nHow It Often Works<\/th>\n<\/tr>\n<\/thead>\n
Vendor impersonation<\/td>\nA message that appears to come from a supplier asks you to update its bank account for future payments<\/td>\n<\/tr>\n
Executive impersonation<\/td>\nAn urgent request that appears to come from an owner or manager asks an employee to wire funds<\/td>\n<\/tr>\n
Payroll diversion<\/td>\nA fake request asks HR to change an employee’s direct deposit information<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Your Coverage Questions, Answered<\/h2>\n

Doesn’t cyber insurance cover this?<\/h3>\n

Not always. Many cyber policies focus on data breaches, ransomware, and network events. Losses from an employee voluntarily sending money to a fraudster may be excluded or covered only through a specific add-on.<\/p>\n

What about a crime policy?<\/h3>\n

Crime policies often cover employee theft and certain types of fraud, but many exclude losses where someone voluntarily parted with funds. Social engineering fraud coverage is often added by endorsement, sometimes with a lower limit.<\/p>\n

Are there conditions to coverage?<\/h3>\n

Some policies require businesses to verify payment changes through a separate channel, such as a phone call to a known number. Skipping that step can affect a claim.<\/p>\n

Steps That Help Prevent Losses<\/h2>\n