Funds-transfer / wire fraud
In one sentence
Being tricked into sending a payment to an attacker's account, usually via a convincing fake email.
Funds-transfer fraud is the theft that follows a successful BEC: a bookkeeper pays a fraudulent 'updated' invoice or a fake urgent request. The money moves instantly and is rarely recovered, which is why a verification step matters so much.
Why it's on your cyber insurance application
Some carriers require a documented payment-verification procedure for full funds-transfer-fraud coverage.
What this looks like in practice
Set a dollar threshold above which a second person approves, and make the call-back rule apply to every change of bank details regardless of amount. Tell the bookkeeper explicitly that they will never be in trouble for delaying a payment to make a phone call. Most of these losses happen because someone felt rushed by a message that sounded like the boss.
How the Readiness Check scores it
The free Check asks the same question a carrier will. Here it is, why it's asked, and the fix if today's honest answer is no. The full application question list has the rest.
Funds-transfer controls
Before changing bank details or sending an unusual payment, do you verify by phone using a known number?
Why carriers ask: Funds-transfer fraud is the single most common small-business loss type. A documented call-back verification procedure is cheap and prevents it, and some carriers require it for full FTF coverage.
If the answer is no: Institute the call-back rule today and tell every person who can move money. It's free and it prevents the most frequent claim type outright.
The written evidence carriers accept
A “yes” on the application needs a document behind it. In the Readiness Pack, those documents are:
Guides that cover this
What construction contractors need for cyber insurance
Contractors face the same cyber insurance requirements as everyone, plus sharper wire-fraud questions. Here's the contractor-specific readiness list.
The 7 controls every cyber insurance application asks about in 2026
Cyber insurance applications in 2026 ask about seven controls. Here's each one, why carriers ask, and the evidence you need before signing the attestation.
Why cyber insurance claims get denied
Cyber claims get denied for inaccurate answers, unmaintained controls, late notice and exclusions. What investigations check, and how to stay covered.
Where this comes up by trade
Some trades get asked about this harder than others, usually because a rule or a claim pattern already points at it. These pages have that detail.
Related terms
Would you pass this question today?
The free Readiness Check scores you across the ten control domains carriers probe, in five minutes, no email required for the score.