Social Engineering Crimes Pose Significant Business Threats: Insurance Coverage Insights for Digital Fraud
As AI-powered social engineering scams become increasingly sophisticated and novel, a savvy company must grow equally vigilant in training employees to recognize suspicious online behavior and reviewing their cybercrime policy language to ensure that all possible areas of loss are covered.
January 28, 2025 at 10:38 AM
8 minute read
With the first quarter of 2025 underway, businesses should take time to review their insurance protection against the growing danger from AI-powered cyber “social engineering” attacks. These threats are so significant, especially in the financial services and legal industries, that a look back to 2024 news headlines should provide all the urgency needed to seek adequate legal, IT, and insurance guidance due to the increasing sophistication of cybercriminals in our interconnected digital world.
The Deloitte Center for Financial Services predicts that generative AI could enable fraud losses across the U.S. to reach $40 billion by 2027. In September 2024, the FBI reported over $17.5 billion in losses reported by U.S. financial recipient victims of business email compromise (BEC) schemes from June 2016 through December 2023.
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View All
'You Became a Corrupt Politician': Judge Gives Prison Time to Former Sen. Robert Menendez for Corruption Conviction
5 minute read
SEC Official Hints at More Restraint With Industry Bars, Less With Wells Meetings
4 minute read
Trending Stories
- 1'Reverse Robin Hood': Capital One Swarmed With Class Actions Alleging Theft of Influencer Commissions in January
- 2Hawaii wildfire victims spared from testifying after last-minute deal over $4B settlement
- 3How We Won It: Latham Secures Back-to-Back ITC Patent Wins for California Companies
- 4Meta agrees to pay $25 million to settle lawsuit from Trump after Jan. 6 suspension
- 5Stevens & Lee Hires Ex-Middle District of Pennsylvania U.S. Attorney as White-Collar Co-Chair
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250
