traditional elements such as employee dishonesty, robbery or cheque forgery, they need to stay informed of emerging trends or evolving threat vectors. Social engineering fraud Also known as business email compromise (BEC) or impersonation fraud (and by a variety of other names), social engineering fraud typically involves someone impersonating a person close to the insured company (an employee, an executive, a vendor or a client) and tricking the company into transferring funds to the fraudster. These funds are often then quickly transferred offshore, making recovery very challenging. Despite the pervasiveness of this threat (the FBI estimated that between January 2015 and February 2017, over $3 billion have been lost by companies around the world to this scam), most traditional insurance policies do not cover this type of loss. Many policyholders have challenged insurance companies' assertions that this is not a covered loss in court; however a series of recent (2017) North American cases support the insurers' positions, notably American Tooling Center, Inc. v. Travelers Casualty and Surety Company of America, The Brick Warehouse LP v. Chubb Insurance Company of Canada, and Taylor & Lieberman v. Federal Insurance Company. The industry has responded to these events by making an extension of coverage available but they are typically subject to additional premium, robust underwriting questions, and are often sublimited. By country Australia In Australia, this type of employer protection is usually called employee dishonesty insurance coverage. (Other names, such as "Fidelity Cover" may also be used by specific insurance agencies or brokers.) Nigeria Several forms of fidelity guarantee cover are available: an individual policy or "floater policy", relating to a named employee; a collective policy, covering a group of employees; or a "blanket policy" which would cover a generic category of employee, such as those who handle the company's cash. United Kingdom In the United Kingdom, this type of employee dishonesty insurance is called fidelity guarantee insurance coverage. United States In the United States, various service providers to pension plans governed by the Employee Retirement Income Security Act of 1974 (ERISA) are required to obtain and maintain fidelity bond coverage in prescribed amounts. References Types of insurance