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CEO Fraud: A Growing Concern for Belgian and Dutch Companies

According to a recent survey by Allianz Trade, almost half of all companies in Belgium and the Netherlands believe that cyber insurance provides sufficient protection against digital fraud. However, this misconception can lead to significant financial losses and reputational damage.

Survey Results

  • 21% of Belgian companies plan to take out fraud insurance
  • 25% of Dutch companies plan to take out fraud insurance
  • Many businesses are unaware of the importance of having dedicated fraud insurance in addition to cyber insurance

Fraud insurance provides coverage for a range of fraudulent activities, including:

  • CEO fraud
  • Social engineering
  • Deepfake/Deep Voice attacks

It also covers costs such as:

  • Repairing IT systems
  • Legal fees
  • Reputational damage

Survey Findings

  • 15% of fraud damages exceed €200,000
  • Almost half the fraud damages fall between €1 and €50,000
  • Internal fraud is committed more frequently by men than women (64%)
  • Male employees who have been employed for less than five years are most likely to commit internal fraud

Lack of Reporting

  • 57% of companies that experience fraud do not report it to the police
  • This lack of reporting can make it difficult to track and prevent future fraudulent activity

Mitigation Strategies

  • Companies are investing in IT security audits
  • Raising internal awareness about the threat of fraud

However, many businesses still underestimate the importance of having dedicated fraud insurance.

Quote from Allianz Trade CEO

“Fraud is a growing concern for businesses in Belgium and the Netherlands,” said [Name], CEO of Allianz Trade. “It’s essential that companies understand the difference between cyber insurance and fraud insurance, and take steps to protect themselves against this type of fraudulent activity.”

Conclusion

The survey highlights the importance of having a comprehensive risk management strategy in place, including business liability insurance, credit insurance, and fraud insurance.

Companies Urged to Review Their Insurance Coverage

In light of the findings, companies are being urged to review their insurance coverage and consider taking out dedicated fraud insurance. This can help to limit financial losses and reputational damage in the event of a fraudulent incident.

For more information on trade credit insurance, guarantees, or fraud insurance, please contact Allianz Trade’s team of experts at +32 (0)2 790 24 15 or contact.belux@allianz-trade.com.