Maryland and Delaware Condominium Laws require fidelity coverage (sometimes called Crime) for associations over a certain size. This coverage would typically reimburse an association after a Board Member or Management steals or misappropriates the funds.
With computer hacking being the fastest growing crime, associations should be proactive in making sure the fidelity policy covers social engineering.
A typical scenario would be when an email goes from the boss to the accountant. A hacker has made it appear that the email is coming from the boss. The wording instructs the accountant to send or wire funds to a specific account. The accountant, who believes this is legitimate, completes the task, and the money is gone.
A treasurer can easily be occupied with home, work, and family. The volunteer position is one who would do what is requested and move quickly to achieve the goals of the association. The treasurer who gets the information that appears valid, could easily be victimized by a cyber hacker.
You can have this coverage added to fidelity policies. Check to make sure your policy has this valuable coverage and develop some rules for your treasurer to protect association funds from these internet scams.
CNA, Travelers and other companies that write fidelity policies will offer this coverage.
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