Crime Insurance and Financial Institution Bonds

An assistant manager for a retailer was involved in a theft scheme with approximately 30 customers. Goods were purchased for export, but were never exported and were ultimately sold on the black market. The assistant manager received kickbacks for his involvement. The insured made a claim for sales taxes that were never paid. The loss claimed was approximately $34,000,000.

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An advisor at an investment management firm transferred funds from five client accounts at the insured to his wholly owned company. He forged signatures on wire authorization letters used to make the withdrawals, used a "cut-and paste" technique (copying genuine signatures and affixing them to faxed wire authorization letters), and embezzled the funds by means of such withdrawals. The loss claimed was $750,000.

An individual impersonating an executive of ABC Corp. emailed an employee in the treasury department of ABC Corp. on various occasions directing him to process several wire transfers totaling $6,000,000 to an overseas bank and to charge it to Administration Expenses. The false executive promised to provide back-up documentation of the expenses at a later date. The email used by the imposter was virtually identical to the executive’s true email address, such that the employee did not notice the difference. The employee processed the wire transfer request and only uncovered the scam when he contacted the true executive inquiring about the back-up documentation that was never received.

Read more about Impersonation Fraud Claims Scenarios (PDF)