Active insurance specialist Coalition has introduced a new service aimed at recovering funds stolen by cyber attackers, marking a first in the UK cyber insurance market.
The company says that its "clawback" service is designed to retrieve funds from the banking system before they can be moved by cybercriminals. The service recently achieved a milestone with the recovery of £1.4 million for a policyholder.
Laura Stewart, Coalition’s UK head of claims, noted that this is the first service of its kind offered by a cyber insurance provider in the UK to recover stolen funds in cases of funds transfer fraud.
“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,” Stewart said.
Stewart also highlighted differences between the UK and US banking systems, stating that the UK system operates at a faster pace and is more challenging to navigate, with banks often 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,” she said.
In a recent case, a law firm in southern England fell victim to a social engineering attack, resulting in the theft of £1.4 million. The firm had cyber insurance coverage for up to £250,000, which covered only a portion of the loss.
By collaborating with a national law firm with expertise in banking system operations, Coalition said that it managed to prevent the stolen funds from being moved and successfully recovered the entire £1.4 million.
Tom Draper (pictured above), managing director of Coalition’s UK operations, remarked that the clawback service is part of their efforts to offer practical value to small and medium-sized enterprises (SMEs) through their active cyber insurance product.
“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,” Draper said.
The clawback service is included in Coalition’s cyber insurance policies at no extra charge to clients.
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