The Case for Cybersecurity Insurance, Part II
Summary: Hackers stole $34,038 from the Brookeland Fresh Water Supply District in East Texas after deleting General Manager Trey Daywood's payroll batch and sending sub-$10,000 payments to seven individuals recruited through work-at-home job scams. First National Bank reversed $15,338 of the fraudulent transfers, and the utility expects to recover the rest through cyber insurance in exchange for a $500 deductible.
Bottom line: The bank flagged the amount as unusually high but called only after processing the transfers, and commercial accounts carry no legal obligation to refund fraud losses the way retail accounts do - leaving the utility's insurance policy, not its bank, as the backstop.
Read the original at Krebs on Security ↗
- Topics
- Fraud & Scams
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