#111-A: Tax Return Preparation, Hacker Attack — When a hacker penetrated the CPA firm’s computer network, the firm’s cyber coverage responded with an investigation and comprehensive services.
#111-B: Business Management Services, Email Fraud — The client’s email and voicemail had been penetrated by a “man in the middle” who was able to prompt a transfer of client funds into the hacker’s own account.
The significant changes brought about by the passage of the Tax Cuts and Jobs Act (“Tax Act”) last December are complex and wide-ranging. Impacts to CPAs and their clients include uncertainties and new concepts that are further complicated by the extent to which individual states will conform to the law.
With cyber-security threats coming from all directions, it’s important for CPA firms to be aware of how the risk exposures impact the firm as well as the client. Just as important is understanding how an effective cyber insurance program works with the firm before and after a cyber incident occurs.
Cyber exposures and coverages are basically divided along two lines:
First-party, which refers to losses directly borne by the policyholder (or insured) firm, and
CAMICO's cyber-related claims experience reveals that hacker attacks on CPA firm email systems were the most frequent cause of cyber-losses for firms. These cyber-attacks accounted for almost two-thirds of cyber-related claims.
Many claims are also related to tax return prepa... read more
War Story #116: Business Management/Accounting Services, Wire Transfer Fraud
Sophisticated hackers can cause a lot of trouble, damages, and wasted time if precautions are not taken to avoid their traps.
#MeToo, Ban the Box, and the Second Chance Act are just a few of the movements and laws that have changed legislation and required employers to update policies and practices. As federal, state and local governments pass new employment laws and update e... read more