When I see the words “social” and “engineering” in one sentence, my brain immediately goes to the scientific and medical side. But in this case, we’re talking about something completely different. The term, in this case, refers to the Social Engineering Fraud Endorsement that may be added to a fidelity/crime policy held by an association or another corporate entity.
Social engineering fraud is a type of cyberspace fraud in which a hacker poses as someone with whom a company does business, such as a manager, contractor, board member, or even a homeowner. The hacker deceptively gains the company’s trust to induce money being transferred to the hacker for services, supplies, or goods that it never delivers.
Although the primary victims of social engineering fraud are companies that have international branches or deal with suppliers in other countries, many claim that homeowner associations are also at risk. In fact, Travelers has a specific endorsement and application specifically for HOA/Condo Associations.
Let us know your thoughts and experiences when it comes to social engineering and whether you would obtain an endorsement to protect your community from this type of fraud.
For more information or if you have questions concerning the social engineering fraud endorsement, please contact a Altitude Community Law attorney at 303.432.9999.