Coalition has launched a service dedicated to recovering funds stolen by cyber attackers.

The cyber insurer’s new UK ‘clawback’ service is designed to intercept funds in the banking system before an attacker can move them. The insurer says its new programme was recently proven a success with the recovery of £1.4m for a policyholder.

Laura Stewart, Coalition’s UK head of claims, said that while the insurer cannot guarantee that it will be successful in getting all of the stolen funds back every time, its process gives it a good chance 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,” she explained. “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.”

In the case of successful scenario, attackers stole £1.4m in a sophisticated social engineering attack on a law firm in the south of England. The law firm had funds transfer fraud cyber insurance cover for up to £250,000, only a fraction of the total loss. Alongside its partners, Coalition team able to help prevent the banks from moving the stolen funds and recover the entire £1.4m.

Tom Draper, Coalition’s managing director, UK, commented: “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.”

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

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