MGA launches clawback service to recover money stolen in cyber attacks

Specialist managing general agent (MGA) Coalition has launched a new service to help policyholders recover stolen funds after cyber attacks.

The company’s clawback service aims to intercept funds in the banking system before cyber criminals can move them.

It is offered as part of Coalition’s cyber insurance policies, at no additional cost.

Tom Draper, UK managing director at Coalition, said: “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.”

Successful case

Coalition explained that the service recently recovered £1.4m for a policyholder.

The incident saw a law firm in southern England targeted in a social engineering attack.

While the firm had cyber insurance, it covered up to £250,000, only a fraction of the total loss.

However, Coalition was able to help prevent banks moving the stolen funds and recover the entire £1.4m.

Laura Stewart, Coalition’s UK head of claims, said that compared to the US, the UK ”moves faster, is harder to navigate and UK banks are often more reluctant to communicate with third parties”.

In turn, the firm operates its service in partnership with a national law firm that has knowledge and relationships within the banking system.

Stewart said: ”This relationship and new process give us the ability to communicate with the banks quickly and forcefully.”