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Phishing Scam

What Is a Phishing Scam?

A phishing scam is a fake message, website, or call that pretends to be legitimate in order to trick you into giving up information, access, or money.

Phishing attacks commonly happen via email, but can also show up through text messages, phone calls, social media, and fake login pages. The goal is to steal private, personal information that can be used for fraud, data theft, or identity theft.

How Do Phishing Scams Target Small Businesses?

Phishing scams target small businesses by attempting to steal passwords, banking details, payment information, or account access from you, your business, or your customers.

Attackers often exploit everyday business tasks to gain access to this type of private information. Some of their methods include:

  • Fake invoices or payment requests
  • Spoofed executive or “urgent” emails
  • Compromised email accounts
  • Malicious links or attachments
  • Fake login pages


An attack can result in lost funds, data breaches, downtime, and even damaged customer trust.

The most common types of phishing scams are:

  • Email phishing: Mass emails pretending to be banks, platforms, or vendors
  • Clone phishing: A real email is copied and resent with a malicious link or attachment
  • Smishing: Scam messages sent by text
  • Vishing: Phone calls pretending to be support, banks, or partners
  • Business Email Compromise (BEC): Impersonation of an owner, executive, or vendor to request money or data
  • Spear phishing: Targeted messages tailored to a specific person or role

Phishing scams often include one or more red flags, so keep an eye out for these warning signs:

  • Urgent or threatening language
  • Requests for passwords or login details
  • Slightly incorrect sender addresses or domains
  • Links that don’t match where they claim to go
    Unexpected attachments
  • Sudden changes to payment or banking details
  • Poor grammar or odd formatting


One red flag may be harmless, but several together usually aren’t. It’s crucial to stay diligent in today’s digital world!

Basic Steps To Reduce Phishing Risk

  • Use multi-factor authentication (MFA) on email, banking, and key tools
  • Train yourself and your team to spot phishing attempts
  • Verify unusual requests through a second, already established channel
  • Check sender addresses and URLs carefully
  • Avoid clicking suspicious links or attachments
  • Keep software and systems updated
  • Have a plan for what to do if someone clicks or submits information

Cyber liability insurance is designed to help when a phishing scam leads to financial loss, data exposure, or system disruption. It’s not meant to stop a phishing attack from happening, but it can help your business recover when prevention fails.

Depending on the policy, coverage may help with:

  • Incident response and investigation
  • Data breach notification costs
  • Funds transfer fraud (if included)
  • Legal expenses and regulatory response
  • Data recovery from malware or ransomware

Get tailored coverage by selecting your industry below.

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    Exclusions

    This policy is not designed to cover:

    • Industrial control engineers
    • Defense contractors
    • Medical software companies
    • Crypto exchanges
    • Gambling platforms
    • Physical security system installers
    •  Heavy equipment integrators

     

    Not available if you manage or control systems involving:

    • Pressure or ventilation systems
    • Fire suppression or explosives
    • Hazardous materials
    • Radiation or pharmaceuticals
    • Water supply or waste management
    • Energy, fuel, mining, construction
    • Environmental systems
    • Aircraft, drones, spacecraft
    • Watercraft, trains, automobiles, motorcycles
    • If you build firmware or embedded software controlling industrial physical equipment.
    • If you support:
    • Military operations
    • National defense
    • Homeland security
    • Law enforcement
    • Weapons
    • Anti-terrorism
    • Public safety
    • Surveillance
    • Crime detection
    • Emergency response
    • Physical security systems
    • If more than 25% of your revenue comes from:
      • Federal government work
      • Military or defense operations
    • If more than 50% of your revenue comes from:
    • Equipment installation
    • Maintenance
    • Physical service work



    Restricted if you work in:

    • Ride-sharing platforms
    • Equipment sharing platforms
    • For-rent-by-owner platforms
    • Help-for-hire platforms
    • Delivery services
    • Banking or financial services
    • Cryptocurrency / blockchain / NFTs
    • Geospatial mapping / aerial photography
    • GPS systems
    • Gambling or gaming
    • Dating or sexually suggestive content
    • Violence-related content
    • Alcohol, marijuana, CBD
    • Tobacco / nicotine / e-cigarettes
    • Flammable or electrical products
    • Food-related services

    Our licensed, U.S.-based agents are here for you from 8 a.m. to 8 p.m. Eastern, Monday through Friday, so they can enjoy evenings and weekends with the people who matter most.