Cyber Scam Prevention and Recovery

U.S. companies of all sizes in recent months have lost millions of dollars to a simple yet highly effective and increasingly common cyber scam.  Dubbed the ‘‘business email compromise’’ by federal investigators, the scam is prevalent among companies with foreign suppliers or frequent financial wire transfers. In this Client Update, we summarize how the scam works, how to protect your company from falling prey to it, and actions to take if your company becomes a victim of the scam, including an in-depth look at insurance recovery for losses.