July Luncheon - Protecting Americas Small Businesses Against Cyber Theft

July Luncheon - Mark Foerster, CDIA - Protecting Americas Small Businesses Against Cyber Theft

Cyber theft of bank accounts has become a billion dollar plus problem, according to the FBI.  What is surprising to business owners who have had their money stolen is that the FDIC doesn’t insure business bank accounts against cyber theft and under Regulation E a Federal Regulation issued by the Consumer Financial Protection Bureau, business/ commercial, non-profit and trust bank accounts are not protected against fraudulent cyber theft of cash at an account level.

Commercial Deposit Insurance Agency is the first company to offer cyber insurance for business, non-profit and trust accounts.  CDIA, a division of Argo Group, an AM Best A rated publicly traded  insurance company, created this product because its founder, Marc Kramer, was looking to insure his own bank account and couldn’t find insurance for business bank accounts against third party cyber theft.  When Mr. Kramer found out that no insurance product existed to insure business, non-profit and trust accounts he worked with Argo Group and another insurer, XL Group, to create Commercial Deposit Insurance.