Coalition helps UK policyholders recover stolen funds from cyberattacks with new service

Coalition, an active insurer focused on preventing digital risks, has launched a service dedicated to recovering funds stolen by cyber attackers in the UK.

Designed to intercept funds in the banking system before an attacker can move them, the cyber insurer’s new ‘clawback’ service has recently proven a success with the recovery of £1.4 million for a policyholder.

In this event, a law firm in the south of England fell victim to a sophisticated social engineering attack, resulting in the theft of over a million pounds.

Despite having cyber insurance, their coverage for funds transfer fraud only covered for up to £250,000, only a fraction of the total loss.

However, by collaborating with a national law firm and leveraging their expertise in the banking sector, the Coalition team successfully intervened and prevent the stolen funds from being transferred by the banks, ultimately recovering the entire £1.4 million.

Laura Stewart, Coalition’s UK Head of Claims, stated: “As far as we are aware, we are the first cyber insurance provider in the UK to offer this sort of service to clawback money in a funds transfer fraud event. While we can’t guarantee that we will be successful in getting all of the stolen funds back every time, we’ve now established a process that will enable us to act immediately, which increases our chances of success.

“While Coalition has been recovering stolen funds for US clients for some time now, the UK banking system is different: it moves faster, is harder to navigate, and UK banks are often more reluctant to communicate with third parties. That’s why we’ve teamed up with a financial crime law partner. This relationship and new process give us the ability to communicate with the banks quickly and forcefully.”

The clawback service is included as part of Coalition’s cyber insurance policies and comes at no additional cost to clients.

Tom Draper, Coalition’s Managing Director, UK, commented: “We continue to add practical value to our Active Cyber Insurance product, helping protect SMEs from cyber events. Funds transfer fraud can be devastating for any business, and adding Coalition’s clawback service to the UK gives us another way to support our policyholders and brokers when their financial livelihoods are on the line.”

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