Social Engineering
Social Engineering Fraud is an intentional manipulation technique that tricks a school employee into paying or transferring money or securities to a cyber-fraudster. The employee believes the request is genuine and submitted by a person claiming to be a vendor, client, or an employee authorized to make the request. Social engineering is one of the most dangerous threats facing MUSIC members. A Social Engineering threat is preventable.
MUSIC will pay up to $350,000 per Occurrence for a loss sustained by a member, providing they have performed an Official Authorization subject to the following requirements:
Before making a wire transfer or ACH payment, the MUSIC member must authenticate/verify the request by calling the company or a known representative. Do not reply directly to the original email or use any contact information, including email addresses, phone numbers, or names provided within the originating request. Your authorization phone call must be documented and kept with any wire transfer or ACH transfer records.
This protocol applies exclusively to situations where you receive an email indicating a wire transfer or ACH payment change.
Failure to perform an Official Authorization will void a member’s insurance coverage in the event of a wrongful transfer under the carrier, Chubb’s, Social Engineering policy guidelines.
Social Engineering Coverage Reminder
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