Service Recovered £1.4 Million for a UK Policyholder After a Social Engineering Attack
LONDON — 15 October 2024 — Coalition, the world's first Active Insurance provider designed to prevent digital risk before it strikes, has become the first cyber insurance provider in the UK to launch a service dedicated to recovering funds stolen by cyber attackers.
The cyber insurer’s new UK ‘clawback’ service is designed to intercept funds in the banking system before an attacker can move them. The program was recently proven a success with the recovery of £1.4m for a policyholder.
Laura Stewart, Coalition’s UK Head of Claims, said: “As far as we are aware, we are the first cyber insurance provider in the UK to offer this sort of service to clawback money in a funds transfer fraud event. While we can’t guarantee that we will be successful in getting all of the stolen funds back every time, we’ve now established a process that will enable us to act immediately, which increases our chances of success. While Coalition has been recovering stolen funds for US clients for some time now, the UK banking system is different: it moves faster, is harder to navigate, and UK banks are often more reluctant to communicate with third parties. That’s why we’ve teamed up with a financial crime law partner. This relationship and new process give us the ability to communicate with the banks quickly and forcefully.”
In the example mentioned above, attackers stole £1.4m in a sophisticated social engineering attack on a law firm in South England. The law firm had funds transfer fraud cyber insurance cover for up to £250,000, only a fraction of the total loss. By partnering with a leading national law firm that uses its knowledge of and relationships within the banking system, the Coalition team was able to help prevent the banks from moving the stolen funds and recover the entire £1.4m.
Tom Draper, Coalition’s Managing Director, UK, said: “We continue to add practical value to our Active Cyber Insurance product, helping protect SMEs from cyber events. Funds transfer fraud can be devastating for any business, and adding Coalition’s clawback service to the UK gives us another way to support our policyholders and brokers when their financial livelihoods are on the line.”
The clawback service is included as part of Coalition’s cyber insurance policies and comes at no additional cost to clients. To learn more about Coalition, visit: https://www.coalitioninc.com.
Coalition is the world's first Active Insurance provider designed to help prevent digital risk before it strikes. By combining comprehensive insurance coverage and cybersecurity tools, Coalition helps businesses manage and mitigate potential cyber attacks. Leveraging its relationships with leading global insurers and capacity providers, including Coalition Insurance Company, Coalition offers Active Insurance products to businesses in the United States, the United Kingdom, Canada, Australia, and Germany. Policyholders can receive automated cyber alerts and access expert advice and global third-party risk management tools through Coalition's holistic cyber risk management platform, Coalition Control®.
The claim scenarios described here are intended to show the types of situations that may result in claims. These scenarios should not be compared to any other claim. Whether or to what extent a particular loss is covered depends on the facts and circumstances of the loss, the terms and conditions of the policy as issued and applicable law.
Coalition is a trading name of Coalition Risk Solutions Ltd., which is an appointed representative of Davies MGA Services Limited, a company authorised and regulated by the Financial Conduct Authority (FCA), registration number 597301, to carry on insurance distribution activities. You may check this on the FCA register by visiting the FCA website www.fca.org.uk. Coalition Risk Solutions Ltd. is registered in England and Wales: company number 13036309. Registered office: 34-36 Lime Street, London, United Kingdom, EC3M 7AT. Copyright ©2024. All rights reserved. Coalition and the Coalition logo are trademarks of Coalition, Inc. or its affiliates.