Grandpoint Bank announced Tuesday that it has launched cyber insurance policies to reimburse business customers for wire transfer fraud schemes.
According to Reuters, Grandpoint Bank is the first bank to market such policies. It has been likened to mobile phone carriers which offer their customers insurance for lost or stolen phones.
The policies will be underwritten by
Hiscox Inc, a unit of
Hiscox Ltd. It would cost $30 to $70 monthly, up to a million dollars in coverage.
The bank said that the coverage includes losses from wire-transfer scams such as business email compromise schemes—where impostors pose as executives or vendors from a business, sending email requests for money transfers.
In the previous week, the U.S. Federal Bureau of Investigation warned that business email compromise scams have considerably increased over the past year. FBI data revealed that over $3 billion has been stolen through such scams since June 2013.
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