Lawyers in South Africa not covered by cybercrime insurance

The AIIF has seen an increase in cybercrime related claims and they state that before 2016 they had paid out R21.08 million in claims, but during the first quarter of 2016, this amount rose to a total of R30 million.

The AIIF is a non-profit insurance provider for attorneys, the AIIF was setup in the year 1993. The AIIF states on their site that:

The Attorneys Insurance Indemnity Fund NPC (AIIF) is a non-profit, short-term insurance company, duly incorporated under the company laws of the Republic of South Africa (registration no. 93/03588/08) and subject to the Short Term Insurance Act 53 of 1998.

Now it seems that the attorneys in South Africa have become the victim of the increase in cybercrime. The refunds that are claimed by the attorneys are so high, that the AIIF simply cannot pay out the claims which are asked to be refunded.

Victims suffer losses worth millions of rand because insurers no longer provide cover for such scams. –

One of the most effective scam seems to be the scam which tricks the attorney into changing the banking information of their clients into the cybercrime banking number, once the change has been performed, the payments are send to the cybercriminal, and as you can understand, the rightful beneficiary then puts in a claim against the attorney.