Cyber vs. crime insurance for wire fraud

Published October 20, 2026

A fraudulent wire can involve two policies at once: cyber insurance for the break-in and crime insurance for the money. Which one pays, and how much, depends on how the payment happened.

Cilantro reviews cyber and crime together for investment firms and startups, so you can see how a payment fraud loss would be handled before it happens.

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Does cyber or crime insurance cover wire fraud?

It depends on how the money left. If someone breaks into your systems and moves money, or sends fake instructions to your bank, a crime policy usually covers the stolen funds. If an employee is tricked into sending the payment, that is social engineering, often a separate add-on with a smaller limit. Cyber insurance usually pays to investigate the break-in and restore systems, but often not the lost money itself. If your business moves money, review the two policies together.

What cyber insurance pays for

Cyber insurance covers your own costs after a hack or data breach, such as investigators, legal advice, notifying the people affected, and restoring systems. It also covers claims from others who were affected.

Some cyber policies include limited cover for payment fraud, but the money that was lost is often a matter for crime insurance instead.

What crime insurance pays for

Crime insurance, sometimes called fidelity coverage, covers money and property stolen from the business, including theft by an employee. For payment fraud, policies usually separate three scenarios, and the last one often has the smallest limit and may require that the instructions were verified first:

Computer fraud: someone breaks in and moves money
Funds transfer fraud: someone sends fraudulent instructions to your bank
Social engineering: an employee is tricked into sending the money

One incident, two losses

Say someone breaks into an email account and uses it to redirect a payment. Investigating the break-in is usually a cyber matter. The redirected payment is usually a crime matter, and if an employee approved it after being deceived, it may fall under a social engineering add-on. Buying both policies doesn’t guarantee there’s no gap between them.

We read the two side by side and walk through how a payment happens at your firm, from request to release. For each quote, we set out:

Which policy responds to each payment fraud scenario
The social engineering limit and any verification conditions
Whose money is covered, including fund or client assets
The notice and proof each insurer needs after a loss

How we help

Send us your current cyber and crime policies, if you have them, and tell us how payments are approved. We’ll show you which policy would respond to each scenario and where the gaps are.

Common questions

Is a hacked email that redirects a payment a cyber claim?

Partly, at most. The investigation and cleanup are usually cyber. The money that left is usually a crime or social engineering matter. We check how your policies split it.

What is social engineering coverage?

It covers money an employee sent after being tricked by someone posing as a vendor, client, or colleague. It is often added by endorsement, with a smaller limit than the rest of the policy and conditions about verifying payment instructions.

Does crime insurance cover fund or client money?

Only if the policy extends to it. It depends on which entities are insured and your responsibility for property that belongs to others.

Talk to us about your insurance

Tell us about your business, what you’re trying to decide, and any deadline. We’ll follow up to set up a call. You don’t need to upload anything now.