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Business Email Compromise (BEC) and Funds Transfer Fraud (FTF) Incidents - 2024 Trends

**Email-Based Cyberattacks Dominate 2024 Claims, Outpacing Ransomware in Frequency** A new report from San Francisco-based **Coalition Insurance** reveals that **business email compromise (BEC) and funds transfer fraud (FTF)** accounted for **60% of cyber insurance claims** in 2024—far surpassing ransomware as the most common threat. While ransomware remained the most costly attack type, email-related incidents drove the majority of policyholder losses, with **29% of BEC attacks leading to fraudulent transfers**. The **2025 Cyber Claims Report**, released this month, highlights a **23% increase in BEC severity** year-over-year, with average losses rising to **$35,000 per incident**. Legal fees, incident response costs, and recovery efforts contributed to the spike. Meanwhile, **FTF claims saw a 46% drop in severity**, averaging **$185,000 per case**—down from a record **$340,000 in 2023**—as financial institutions improved fraud detection, flagging large transactions for review. Despite the decline, FTF losses remain volatile, with one 2024 case involving a **$9.3 million fraudulent transfer** that was later recovered. Coalition successfully **recovered $31 million** in stolen funds for clients in 2024, averaging **$278,000 per case**. The report underscores the role of **social engineering** in these attacks, with threat actors using **AI-enhanced phishing and deepfake audio/video** to impersonate executives or trusted entities. The **FBI** reported that BEC scams in 2023 affected all **50 U.S. states and 186 countries**, with losses exceeding **$55 million**. While **ransomware frequency declined by 3%**, it remained the most damaging attack type, with average demands dropping **22% to $1.1 million**—the first time in two years they fell below seven figures. **Akira** was the most prevalent ransomware variant, followed by **Play, MedusaLocker, RansomHub, and Fog**. The cyber insurance market continues to evolve amid rising threats, with global spending projected to grow from **$20.88 billion in 2023 to $120.47 billion by 2032**. Insurers and cybersecurity firms are introducing **AI-driven tools** to streamline policy analysis and risk assessment, aiming to improve access and clarity for businesses.