Increase in internal and external fraud
CEO fraud and fraudsters posing as customers or suppliers are forms of cybercrime that are becoming increasingly common. This type of fraud poses a growing threat to businesses. But it is not only third-party criminal activity; your own employees can also cause damage. Every year, there are as many as thousands of cases of white-collar crime. In these, your own employees are the fraudsters and cause damage to your business through fraud, embezzlement or property damage. It is not uncommon for the damage to run into the millions.
What do you insure with Euler Hermes' fraud insurance?
With Euler Hermes' fraud insurance, you protect your business against financial losses due to internal fraud as well as external fraud. You are insured for:
- Financial losses resulting from employees' criminal activities. These include theft, breach of trust, fraud, embezzlement or property damage;
- fraud damage due to false identity, as in the case of 'CEO fraud' or diversion of funds by third parties posing as one of your business partners;
- damage caused by third parties through certain forms of embezzlement, theft or fraud.
In addition, you have the option to co-insure damages caused by stealing trade secrets.
Frequently asked questions about taking out fraud insurance:
I know who all my employees are and know them well, why shouldn't I trust them?
Many business owners trust their employees blindly, and usually rightly so. Yet figures show that infidelity, fraud and other criminal offences cause millions in damages every year. Simply because the company has trusted the wrong person. In many cases, an employee commits fraud because of financial difficulties, a gambling addiction or just because they can. So make sure you take the right preventive measures and protect your company from the financial risks.
We have secured our It system to the highest standard. Who can crack that?
Cybercrime continues to evolve, so cybercriminals are always finding new ways to hack into business systems. Don't forget external attacks, which are becoming increasingly sophisticated. For example, did you know that there is special software that criminals use to mimic the voices of executives or customers when making phone calls? This makes it even more difficult to spot scams and protect you from them. To avoid major consequences for your business, it may be smart to look for protection for this.
Should someone steal something, we are perfectly capable of bearing those costs ourselves, right?
Often, the problem is not the stolen office equipment. You can usually bear that damage yourself. It only becomes a different story with fraud where criminals have embezzled many millions of euros. Such fraud cases usually take years. And the most annoying thing about this is that when a perpetrator is convicted, there is nothing more to get from him because the money has run out. This has major implications for your business. Fraud that you discover after you have taken out fraud insurance, but occurred before that, is also covered under fraud insurance.
Want to know more?
Want to know more about how to protect against internal and external fraud? Then contact one of our specialists.
