Banks are responsible for the money, investments, and securities belonging to a lot of individuals and businesses. Robbers, including cyber hackers, interested in seeing if they can remove funds from these institutions, are constantly targeting banks. Banks therefore face various exposures today including emerging trends and new vulnerabilities, such as wire fraud, phishing schemes, and theft of money through extortion, all affecting banks along with all of the different types of businesses being served.
These concerns require Business insurance for banks to provide the type of long-term protection these institutions need since, on average, US organizations lose 7% of their annual revenues to fraud. This equates to approximately $994 billion in fraud losses, on average. Additionally, 21% of employee theft cases involved an organization in the financial services category, which includes banks, credit unions and insurance companies. With so much at stake, crime insurance is the best way to offset these losses.
Crimes against banks are often internal
The majority of most theft and losses involve employees, and this often includes long-term employees that have searched for, and located, a weakness in the business. This can include anything from a gap in protection, to any internal control and processes that they determine can be exploited. The number of schemes used by dishonest employees continues to grow along with technology that can be used to infiltrate nearly every aspect of a business, banks included, and these growing exposures can have a serious affect in ways that were never before imagined.
Even the most well-managed companies are vulnerable to a criminal smart enough to take advantage of opportunities to steal cash or other valuable items that can undermine public trust when it affects customers and others involved in the services provided by that institution.
Crime coverage, also known as fidelity insurance, is used to manage and address losses resulting from all different kinds of criminal acts such as robbery, burglary and other types of theft, including employee theft. Crime related losses could vary significantly among businesses and often require special underwriting skills. The agents and underwriters providing Business insurance for banks can assist you and put your lending institution in a better position to deal with issues pertaining to crime.