Cyber-enabled fraud has surpassed ransomware as the top cyber risk for CEOs, driven by social engineering tactics like business email compromise (BEC) and funds transfer fraud. These attacks cause significant losses, often only partially covered by cyber insurance, which may exclude social engineering without specific endorsements. Coverage gaps exist between cyber and crime policies, with low sublimits and high retentions common. Risk managers should ensure comprehensive coverage, update risk strategies, train employees, and verify policy conditions to prevent and mitigate losses.
