Wouldn’t You Rather Pay $1000 for a Policy vs. $400,000+ in Damages?
Barbara Corcoran, a judge on “Shark Tank”, lost nearly $400,000 in an email scam this Wednesday, February 26th, 2020. Her bookkeeper received an email requesting a $388,700 payment for renovations. Since they regularly invest in real estate, and the email appeared to come from Barbaras’ assistant, the bookkeeper had no reason to be suspicious. A copy of the email chain is below.
However, the email actually did not belong to Corcorans’ assistant. instead, the scammer imitated her assistant’s email address with one letter off. It was a simple mistake, that was not caught until the bookkeeper sent a follow-up, which ultimately cost her business nearly $400,000.
Both the scammer and the money have “disappeared”.
If she had the right Cyber/ Data Breach Insurance policy in place, she would have recovered that $400,000. Instead, now she is paying her IT department and attorneys in hopes that they can recover some of the damages, in a timely fashion.
Would your firm survive this type of loss?
Most policies start at $1000, and even the more expensive ones are only about $2,500
Things happen, even a Shark can get hooked by a phishing scam. Ensure your firm is protected with a Cyber/ Data Breach Policy.
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- Malpractice Insurance Basics Webinar Episode #4: Common Supplementary Payments within your Lawyers Professional Liability (LPL) Policy.
- Malpractice Insurance Basics Webinar Episode #3: Extended Reporting Period (ERP) A.K.A. Tail Policy
- Malpractice Insurance Basics Webinar Episode#2: How Application Answers Impacts Premium and Coverage
- Malpractice Insurance Basics Webinar Episode#1: An Introduction to LPL Policy Terms