Cyber Fraud Against Law Firms
Below are links to two stories about a recent cyber fraud perpetrated against one of the world’s largest law firms, Dentons. In short, the firm inadvertently transferred $2.5M in client funds to a fraudulent account and then subsequently attempted to make an insurance claim under the firm’s cyber insurance policy for the lost funds. Though the firm had cyber insurance, they did not purchase a social engineering rider who provides for coverage when an insured is fraudulently induced to voluntarily part with monies and therefore, coverage was denied. This unfortunate incident highlights the importance of verifying all wire instructions via a phone call and the importance of social engineering coverage which can be purchased as part of a firm’s crime and/or cyber policy.