A customs broker who had been working with their agent in Vietnam for several years became a victim of social engineering. A cybercriminal hacked into the agent’s president’s email and proceeded to send an email to the customs broker advising the agent had changed banks. The email provided the new bank information (which was in another country).
The customs broker issued a payment of $350,000 to the new bank. When the agent did not receive timely payment and inquired about the payment status, it became clear that the customs broker was out a large sum of money. The broker had opted not to purchase Social Engineering Coverage under their cyber policy. Had they opted for the coverage, the loss would have been covered.
For additional information on Avalon’s Cyber Defense coverage, contact your local Avalon representative.