Employee is tricked (or mistaken) into sending money to a fraudulent third party

🧾 Scenario

• Your client uses Corkinc and complies with all their cybersecurity requirements.
• An employee is tricked (or mistaken) into sending money to a fraudulent third party (e.g., due to phishing, spoofed email, etc.).
• You’re asking: Will cyber insurance pay out for this?

✅ Will Cyber Insurance Cover This?

It depends—but often YES, if the policy includes Social Engineering or Fraudulent Transfer coverage.

Standard cyber insurance does not always automatically cover this scenario unless specific endorsements are included. The key factors:

Coverage Feature	Explanation
Social Engineering Fraud	Must be specifically included as an endorsement or sublimit.
Funds Transfer Fraud	Usually covers when a hacker directly causes the transfer (e.g., via credential theft).
Employee Mistake	Covered only if the policy includes social engineering and doesn’t exclude voluntary transfers.
Policy Sublimit	Social engineering coverage is often capped at a lower amount (e.g., $50K–$250K).

• ✅ Covered if the policy includes social engineering fraud.
• ❌ Not covered if the transfer was voluntary and the policy excludes such events.

❌ Will Corkinc’s Cyber Warranty Pay Out?

Very likely not, based on how cyber warranties (like Corkinc’s) are generally structured.

Why?

• Warranties typically cover failures in the security stack (e.g., malware getting through, ransomware not blocked).
• If the security tools performed as expected, and the incident was due to human error, it’s outside the warranty scope.
• Most warranties exclude voluntary actions (even if made in error).

🛠️ What Should Your Client Do?

1. Review of the Cyber Insurance Policy:
   • Confirm it includes Social Engineering Fraud and/or Voluntary Funds Transfer coverage.
   • Check the sublimit (often lower than total cyber liability).
   • Ensure it doesn’t have exclusions for employee errors in fund transfers.

2. Enhance Controls:
   • Dual-authorization or out-of-band confirmation for wire transfers.
   • Frequent employee phishing training.
   • Email authentication tools (like DMARC, SPF, DKIM).

3. Use Warranty + Insurance Together:
   • Corkinc may help reduce premiums or show compliance.
   • But for financial losses due to deception or mistakes, cyber insurance is the primary protection.

✅ Summary

Question	Answer
Will Corkinc pay for employee wire fraud mistake?	❌ Unlikely. Not covered under warranty.
Will Cyber Insurance pay?	✅ Yes—if it includes Social Engineering or Funds Transfer Fraud coverage.
Best practice?	Pair cyber insurance with tech tools + strong internal financial controls.