The art of manipulating people in an online environment, encouraging them to
divulge—in good faith—sensitive, personal information, such as account numbers,
passwords, or banking information. Social engineering can also take the form of
the "engineer" requesting the wire transfer of monies to what the
victim believes is a financial institution or person, with whom the victim has
a business relationship, only to later learn that such monies have landed in
the account of the "engineer."
Coverage for losses sustained by means of social engineering is available by
endorsement under cyber and privacy insurance policies, although typically
limited to $100,000. In addition, social engineering coverage (also known as
fraudulent instruction coverage) only applies as excess coverage over limits
available under any applicable commercial crime insurance policy.