Cybercrime has always been on the rise with more of the world becoming more digitally advanced as the years go on. Then there is the Covid-19 pandemic, which no doubt pushed even more people towards digital methods.
As rural organisations, even traditional farmers, have also had to evolve with the rest of the world to continue running their businesses, it means that they are also using digital technology more. Modern farmers store and share information electronically, through systems connected via the internet, from emails to accounts to business management systems – all susceptible to cybercrime. This is particularly true for larger companies that use all sorts of technological advancements to innovate and keep up with the modern day.
With the UK having the highest number of cybercrime victims in 2022*, and the only 17% of agricultural organisations with board members or trustees that have responsibility for cybersecurity**, it means rural businesses need to be vigilant, understand cyber risks and be protected from it or covered for its aftermath.
The following case demonstrates how Rural Protect was there or reimburse an insured business – a natural energy supplier – when they became victim to fraudsters which resulted in them paying over £29,000 into a fraudulent account.
Business type: Agricultural Contractor – Natural Energy Supplier
Section of cover: Company Legal Liability
Applicable cover: Third Party Fraud and Forgery
Circumstance: Business became a victim of email interception.
Legal fees value: £13,908
The scenario:
The business was sent an invoice of £29,000 via email from their supplier which they picked up and went on to pay as normal.
What happened?
Unfortunately, what the business was unaware of was that the email from the supplier was intercepted by a hacker before it reached them, at which time the bank details within the invoice were altered, therefore resulting in them having paid into a fraudulent account.
The business reported the matter to their bank however no funds were able to be recovered by their bank.
The outcome:
The business then turned to its Rural Protect policy which reimbursed the business up to the limit of cover that they had chosen. Had the business chosen a higher level of cover and one that matched the largest single electronic payment that could be made from their bank account, they would have been insured for the full amount of their loss.
Things to consider:
Cybercriminals use sophisticated fraudulent methods to target all sectors where there are large amounts of money, assets, and data at risk, including the rural sector. To combat this, Rural Protect’s Fraud cover includes Telephone Fraud cover, Third Party Fraud or Forgery cover and Third Party Electronic Funds Transfer cover. Our standard cover options have an aggregate limit of £10,000 per event or per term, but this can now be amended to £25,000, £50,000, £75,000 or £100,000.
Find out how fraud criminals target farmers and what tips you can give your rural clients to avoid falling victim to fraud here.
If you would like to know more about Rural Protect, call us on 01653 609090 or email enquiries@hbunderwriting.co.uk.
Source:
* https://surfshark.com/research/data-breach-impact/statistics
