Fraud costs D&O insurance millions .. Image by Gerd Altmann on Pixabay
In the end there was a compromise. The Finnish telecommunications provider Teleste was the victim of CEO fraud, a scam with stolen identities. In settling the million dollar damage, the company has now compared itself with its D&O partners.
In 2019, the company’s German subsidiary fell victim to CEO fraud and lost more than seven million euros – which meant almost all of the year’s profit, like juve.de reports. In the case of CEO fraud, the hackers pose as high-ranking employees or board members and require their direct employees to transfer large amounts of money to foreign accounts. Once the money has been transferred, it is transferred directly, which makes it much more difficult to find.
The agreement
According to juve, VOV and Zurich were involved in the comparison. 3.2 million euros will now be paid out to the Finns. Immediately after the incident, large sums of money were recovered from the attackers’ accounts, so that the reported damage was around four million euros. In the end, the company did not experience a major financial hole. An existing cyber insurance is not involved in the settlement of the damage, according to the reporter.
In 2016, Leoni AG was stolen 40 million euros using a similar scam. At that time, the D&O insurers reimbursed five million euros.
Author: VW editorial team
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