Jeremy King Publishes Article in NYLJ on How Social Engineering Crimes Pose Significant Business Threats and Provides Insurance Coverage Insights for Digital Fraud

Chair of Olshan’s Insurance Coverage Practice Jeremy King published an article in New York Law Journal (subscription required) entitled “Social Engineering Crimes Pose Significant Business Threats: Insurance Coverage Insights for Digital Fraud.” In the article, Jeremy discusses the increasingly sophisticated nature of AI-powered “social engineering” scams and how businesses need to proactively engage in cyber protections. Generative AI could enable fraud losses across the U.S. to reach $40 billion by 2027, he writes, and the tool’s ability to be deceptive in terms of creating deepfake audio and even video content allows cybercriminals to obtain money or access secured systems. “Social engineering preys on human psychology and behavior,” Jeremy writes. “Social engineering is different from computer hacking, which often involves technical exploits of software or hardware vulnerabilities allowing access to computer systems.” To combat the very real dangers posed by social engineering scams, Jeremy recommends companies both invest in cyber insurance policies as well as implement robust training protocols to identify potential security risks and promote good digital security hygiene. And because social engineering scams can substantially interrupt a company’s operations, especially if ransomware or other malicious software is involved, policyholders should work with their insurance providers to ensure their policies cover such events. “As AI-powered social engineering scams become increasingly sophisticated and novel, a savvy company must grow equally vigilant in training employees to recognize suspicious online behavior and reviewing their cybercrime policy language to ensure that all possible areas of loss are covered,” Jeremy explains. “Having broad social engineering insurance coverage is increasingly essential for businesses of all sizes, as it provides financial support to recover and rebuild if the worst happens.”