The Boundaries of Cyber and Commercial Crime Risks Are Blurring
Traditionally, commercial crime policies cover direct losses from fraud and theft — failures of human behavior. Cyber policies, on the other hand, were meant to cover indirect losses stemming from failures of systems and technology, picking up the costs of notification, forensic investigation, privacy monitoring and data recreation when PII is breached.
But new types of theft are blurring the line between cyber and commercial crime risk — most notably social engineering fraud. These schemes result in direct financial loss without any system failure or data breach … but bad actors nonetheless rely on computers and wire transfers to perpetrate their fraud. These incidents do not fit neatly into either a cyber or commercial crime bucket.
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