Financial Institution Bond Insurance
What is financial institution bond insurance?
Maintaining strong, enforceable internal controls is a priority for many organizations, regardless of their size. Yet even the best internal controls, background checks and audit practices, no matter how well conceived, frequently fall short of stopping a trusted employee from engaging in fraudulent activity. Travelers helps financial institutions understand financial institution bond insurance.
Social Engineering: Expect the Unexpected
Financial institution bond insurance, with optional endorsements for social engineering fraud, electronic signatures, virtual currency and account takeover coverages, provides an important backstop against the actions of dishonest employees, protecting a financial institutions' balance sheet, assets and stakeholders' investments.
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Text, Travelers. The red logo umbrella hangs over the S in Travelers. Text, Social Engineering Threats Against Financial Institutions. A man and woman appear in a video call. Text, Jerry Keup, Bank National Underwriting Officer. Tracey Santor, FI Bond Product Manager.
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TRACEY SANTOR: As an independent banker, you're no stranger to financial threats. But you need to know, in today's digital world, an advanced type of cybercrime is on the rise.
JERRY KEUP: That's right, Tracy. It's called social engineering. It can be insidious and difficult to spot. These schemes are run by intelligent and skilled fraudsters. Underestimating their sophistication can have serious consequences.
TRACEY SANTOR: Exactly. Typically, social engineering uses behavioral techniques to trick bank employees into sending money or giving out confidential information. They exploit social norms by gaining trust and appealing to goodwill to fool employees into transferring funds.
JERRY KEUP: Recently, we're also seeing examples of fraudulent instruction and criminals using counterfeit and forged checks against home equity lines of credit.
TRACEY SANTOR: And it doesn't end there, Jerry, baiting, phishing, email hacking. Fraudsters continue to innovate, so it's critical that we work as hard as they do. After seeing an explosion of fraud claims across the country, Travelers has developed expertise in avoiding and protecting against social engineering. You'll find more information and best practices for protecting your bank on travelers.com.
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Text, Travelers. Learn more by visiting Travelers dot com. Travelers Casualty and Surety Company of America and its property casualty affiliates. One Tower Square, Hartford, CT 06183 Copyright 2020 The Travelers Indemnity Company. All rights reserved. Travelers and the Travelers Umbrella logo are registered trademarks of The Travelers Indemnity Company in the U.S. and other countries.
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