Insurance for Banks and Diversified Financial Institutions

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TEXT: TRUE STORY 

TEXT: What seemed like a routine wire transfer turned out to be an all-too-common social engineering fraud. 
Presented by Travelers Insurance 

TEXT: Once Upon a Phony Phone Call 

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Bob remembers that Friday morning well. Not just because his commute was surprisingly 
lighter than usual, but because he was excited about the plans he was making 

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to go fishing over the long bank holiday weekend. 

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After arriving at his teller job at Brownsville County Bank, Bob settled into his day with 
a muffin and his usual cup of coffee. The first order of business was fielding a typical wire 
transfer request. 

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Following bank protocol, Bob called the customer's home phone number 
to verify the validity of the transfer. Reaching who he assumed was the customer on the other end of the phone and receiving their personal identification information, Bob sent a fax request form. Once the form was completed and returned, Bob initiated the transfer of funds. 

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On that same Friday morning, the actual customer recounted, his home phone rang once and then stopped. 
The victim reported that no one could reach him on the phone for the rest of the morning. 

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Upon investigation, the phone company's records showed that it received a request from someone representing 
himself as the customer to have his calls forwarded to a cell phone. 
Once the wire transfer was complete, 

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the call forwarding was canceled. It's called Social Engineering. In this case, it was a fraudulent instruction, a surprisingly successful ploy that happens every day to banks of all types and sizes. 

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In fact, PurpleSec reports in the list of 2021 cybersecurity statistics that 98% of cyberattacks rely on Social Engineering. 

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Even well-managed financial institutions with proven best practices of employee training and financial checks 
and balances can be infiltrated. Luckily, Brownsville County Bank had Travelers Financial Institution Bond Coverage 

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to help protect against losses caused by fraudulent instruction Social Engineering fraud. Once the matter was resolved and the funds were restored, 

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the customer, not to mention Bob and his bank, were able to breathe much easier. 
True stories like this one generally have happier endings with a little knowledge, foresight, and protection. 

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Contact your Travelers representative to learn more 

TEXT: Travelers Casualty and Surety Company of America and its property casualty affiliates. One Tower Square, Hartford, CT 06183 
 
This material does not amend, or otherwise affect, the provisions or coverages of any insurance policy or bond issued by Travelers. It is not a representation that coverage does or does not exist for any particular claim or loss under any such policy or bond. Coverage depends on the facts and circumstances involved in the claim or loss, all applicable policy or bond provisions, and any applicable law. Availability of coverages referenced in this document may depend on underwriting qualifications and state regulations. Claims scenarios are based on actual claims, composites of actual claims, or hypothetical situations. Facts may have been changed to protect confidentiality. 

 
© 2021 Travelers Indemnity Company. All rights reserved. Travelers and the Travelers Umbrella logo are registered trademarks of The Travelers Indemnity Company in the U.S. and other countries. 

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TRACEY SANTOR: As an independent banker, you're no stranger to financial threats. But you need to know, in today's digital world, an advanced type of cybercrime is on the rise.

JERRY KEUP: That's right, Tracy. It's called social engineering. It can be insidious and difficult to spot. These schemes are run by intelligent and skilled fraudsters. Underestimating their sophistication can have serious consequences.

TRACEY SANTOR: Exactly. Typically, social engineering uses behavioral techniques
to trick bank employees into sending money or giving out confidential information. They exploit social norms by gaining trust and appealing to goodwill to fool employees into transferring funds.

JERRY KEUP: Recently, we're also seeing examples of fraudulent instruction and criminals
using counterfeit and forged checks against home equity lines of credit.

TRACEY SANTOR: And it doesn't end there, Jerry, baiting, phishing, email hacking. Fraudsters continue to innovate, so it's critical that we work as hard as they do. After seeing an explosion of fraud claims across the country, Travelers has developed expertise in avoiding and protecting against social engineering. You'll find more information and best practices for protecting your bank on travelers.com. 

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