Bank of Tucson Makes First-of-its-Kind Cyber Crime Insurance Available!
Bank of Tucson has introduced a new way for its business banking clients to protect themselves from financial losses due to funds transfer fraud and cyber deception through a first-of-its-kind cyber insurance group policy.
Grandpoint Bank has created Grandpoint Insurance Services, Inc., a non-bank insurance agency affiliate, to develop the Client Cyber Crime Insurance product. The policy, offered to customers of Grandpoint Bank and its divisions, including Bank of Tucson, offers cyber crime loss coverage that is specifically geared to monetary losses. It was created as an affordable and easy alternative to individually underwritten, higher-priced commercial crime insurance policies.
The majority of businesses don’t realize that they have significantly more exposure for losses due to fraud than individual account holders, who are afforded certain regulatory protections. Businesses are often tricked into approving fraudulent transfers, notwithstanding internal controls to identify and prevent this kind of risk. According to the FBI, since 2013, over 17,000 businesses have lost an aggregate of more than $2.3 billion to one type of cyber crime alone, known as the business email scam.
Even as monetary losses due to cyber crime have skyrocketed in recent years, many traditional commercial crime policies specifically exclude losses arising from cyber deception.
“We are excited to make this new coverage available to our business clients,” said Petra Griffith, Director of Product Development for Grandpoint Bank. “The policy focuses on the kinds of coverage that directly address the key fraud risks that businesses face – losses to their bank accounts through cyber crime. Cyber crime is a major concern for businesses, especially since they are typically liable if cyber criminals steal funds from their business accounts. They often don’t have the appropriate insurance in place and are finding it more difficult to protect themselves in this ever evolving, increasingly sophisticated cyber crime environment.”
The Client Cyber Crime Insurance policy is available exclusively to business clients of Grandpoint Bank and its divisions, Bank of Tucson, Regents Bank and The Biltmore Bank of Arizona, through Grandpoint Insurance Services, in partnership with LBW Insurance & Financial Services, Inc. The policy is underwritten by Hiscox Inc., on behalf of Underwriters at Lloyd’s, London, which is rated A by A.M. Best. Insurance products are not a deposit, not FDIC insured, not federal government agency insured, not bank guaranteed.
The Client Cyber Crime Insurance group policy coverage helps reimburse funds in business deposit accounts lost due to funds transfer fraud and cyber deception and is offered at premiums that represent substantial savings from individual policies currently available on the market. Any business that has a deposit account at Grandpoint Bank or its divisions is automatically eligible to enroll in the policy and select from a range of coverages with premiums that start at $30 per month.
“Educating and alerting our clients, and the broader business community, about established and emerging cyber crime trends is a commitment we’re passionate about,” said Mike Hannley, President of Bank of Tucson. “We’ve been working for over a year to create a more powerful solution to help clients protect their financial assets against attacks by cyber criminals.”
For more information on the Client Cyber Crime Insurance, visit grandpointinsurance.com.
Insurance Products are:
Insurance Products are offered through Grandpoint Insurance Services, Inc., a non-bank insurance agency affiliate of Grandpoint Bank, and facilitated through LBW Insurance & Financial Services, Inc., an unaffiliated insurance agency.
Posted on June 22, 2016, in Fraud Protection and tagged business email scam, cyber crime, cyber crime insurance, cyber criminals, cyber deception, fraudulent transfers, funds transfer fraud, hiscox, LBW insurance. Bookmark the permalink. Leave a comment.