01 / The meaning
What it means.
A business may be the victim of employee theft, invoice manipulation, payment redirection or an outside scam. Insurance policies can distinguish these mechanisms rather than cover them under one broad fraud label. Crime, cyber and liability sections may have different triggers and exclusions, particularly where an authorised employee voluntarily transfers money after being deceived. Establish how the transaction occurred before assigning it to a section.
Fraudulent claims are a different issue: knowingly falsifying an insurance claim can have serious legal and policy consequences. Honest errors should be corrected promptly, with a clear record of what changed. For suspected business fraud, preserve emails, account information and approval records, and follow appropriate bank and incident-response processes. A discovery should prompt an investigation without treating suspicion alone as proof against a particular person.
02 / Put it in context
A practical example.
Hypothetical example: a wholesaler pays an invoice after receiving altered bank details from a compromised email account. It contacts its bank promptly and preserves the messages while the insurer examines any applicable crime or cyber provisions.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Identify who deceived whom and who authorised the payment.
- Check social-engineering, crime and voluntary-transfer provisions.
- Preserve transaction evidence and record when the issue was discovered.
04 / Start a useful conversation
A question for your broker.
Which mechanism caused the loss, and does the policy specifically address that type of fraud?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
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