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We think a lot about risk—and ways to manage it—in a variety of ways. From rising concerns to best practices to exposure assessments, we're sure you’ll find our expert insights valuable.

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Elder scam awareness: Steps to stay secure

Scammers are unfortunately getting bolder—and elderly adults are often prime targets. In one case, couriers spent two years collecting cash and gold bars from victims in Massachusetts who believed they were helping loved ones or paying urgent debts. In reality, it was a sophisticated fraud scheme that stole millions. We have continued to see scammers exploit trust, isolation, and limited technology familiarity through fake emergencies, romance scams, and impersonation. The financial and emotional toll can be severe for the victims of these ongoing scams. However, as with any risk management issue, awareness and prevention are the best defenses. Here’s what we recommend: Four steps to help protect against elder scams: 1. Avoid contact with unknown entities: Scammers thrive on engagement. They sound helpful and convincing—but only if you respond. Think twice before answering calls or texts from unknown numbers or emails from unknown addresses. Even recognizable entities like your bank can be spoofed. Let the call go to voicemail, then verify using a trusted number or contact your banker directly. Take the same precautions with any unexpected messages from government agencies, shipping companies, or similar sources. A few extra minutes to verify can save hours of dealing with identity theft or financial loss. 2. Add safety protocols: Work with your advisory team to streamline bank accounts and ensure all necessary security measures are in place. If your bank accepts instructions via email, make sure it requires two-part verification, as scammers often mimic emails to request wire transfers. Whenever you receive a suspicious or unclear inquiry, consult your team immediately. Send any notice from the IRS to your Certified Public Accountant (CPA) for verification, and forward anything from government agencies to your lawyer. 3. Involve family members: It can be difficult to ask for help, but adding a trusted adult child or relative as a financial proxy can offer protection and peace of mind. Families with older generations should have sensitive conversations about transferring financial responsibilities earlier rather than later. Encourage older relatives to check with someone before responding to suspicious messages. This might mean texting a screenshot to a family member or using apps that allow trusted access to devices when needed. 4. Review cyber-insurance: Coverage for scams and fraud can vary significantly between policies, so it's important to discuss the details with your account executive. As a reminder, most policies do not cover voluntary money transfers, even if they are solicited by a scam. Scammers are constantly finding new ways to deceive, making it even more important to stay vigilant and support the vulnerable people in your life. Protecting yourself and your loved ones starts with awareness and caution. If you ever have questions or concerns, please don’t hesitate to reach out. We’re here to support you and help you feel confident keeping scams at bay. ...

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Shared walls, shared risks: How to safeguard your condo or co-op

Whether you’ve just been approved by the co-op board, won a bidding war for that coveted condo, or are happily settled in your forever apartment, beyond the excitement of ownership lies an important reality: condos and co-ops carry unique risks that can catch even experienced owners off guard. Understanding how to protect yourself and your investment can save you time, money, and headaches down the road. Here’s what every co-op and condo owner needs to know to stay secure and stress-free. Why condos and co-ops carry unique risks Unlike standalone homes, where owners handle all maintenance — from plumbing to landscaping — condos and co-ops share responsibility. The building’s board or homeowners’ association usually manages structural elements such as the roof, walls, and common areas. However, everything inside your unit is your responsibility. This distinction is crucial. As a unit owner in condos and co-ops, you are responsible not only for your own property but also for incidents originating in your unit that affect others. For example, if you leave the bathtub running and water makes its way to the unit below, your neighbor could sue for damages. Likewise, you could be held responsible if a maintenance worker is injured in your unit while handling a building-wide issue. Because of these exposures, adequate liability coverage is essential, not optional. Key insurance coverages homeowners should consider Living in condos and co-ops means sharing walls, systems, and risks with neighbors. Compared to freestanding homes, there’s a greater chance of being affected by or affecting others. Since you have limited control over your environment, protecting yourself starts with key insurance coverages: Mold coverage: Water leaks in neighboring units can lead to mold in your home. While mold is easier to detect in standalone houses where owners have full access to systems and spaces, it can be severe and unnoticed in condos, especially if you’re not a full-time resident. Standard policies often limit mold remediation coverage to $10,000–$20,000, but actual cleanup costs can exponentially exceed these limits. In larger claims, costs can run well beyond $40,000, particularly when affected by HVAC systems or hidden structural areas. Consult with your advisor to explore available coverage options. (Some states impose coverage caps.) Personal property: This coverage protects your belongings—furniture, electronics, clothing, and more—against losses from covered events such as fire, theft, and water damage. Water losses are especially common in condos, and personal property coverage is essential if you cannot recover costs from a responsible party. Additions and alterations: This “walls-in” protection, calculated based on square footage, covers the cost of replacing or rebuilding interior improvements, from floors to finishes to fixtures. Loss of use: Rehabbing an extensively damaged unit can require a temporary relocation for an extended period, and this coverage can help with that. The reconstruction process can be time-consuming, even before accounting for building restrictions on work hours and elevator use, which may cause further delays. So, make sure you are appropriately covered. Liability: As mentioned above, this is protection if you cause damage or harm to someone else or their property. Directors and Officers (D&O): If you serve or plan to serve on your building’s board, ask your broker to check the adequacy of its D&O coverage. What looks like a lot on paper may be insignificant when divided among board members, and individual members can be held personally liable after the building coverage limits have been exhausted. Proactive steps to minimize your exposure As always, a little bit of prevention can go a long way, both in avoiding costly damage and reducing stress. Here are some of the most important proactive steps to take: Plan carefully for renovations: Any construction in your home presents a risk. One study found that claims rose sevenfold during renovations. (Think of the flammable materials, tools, ladders, and the like that decorate a work site.) Notify your broker before you undertake even small projects, not least because your claim could be denied if you don’t. Similarly, ensure contractors and subcontractors are adequately insured with liability limits matching the project size. Install loss-prevention technology: Water damage has surpassed fire as the leading cause of loss in condos. Devices like leak sensors and automatic shutoff valves can provide critical early warnings and help minimize damage. Consider security alarms: If your building lacks a doorman or front desk staff, we recommend a centrally monitored alarm system for safety and peace of mind. Condo and co-op ownership comes with shared benefits—but also shared risks. Being adequately insured is not just about protecting your personal space, but also about safeguarding your financial well-being and maintaining good relationships with neighbors and your building’s management. If you have any questions or need further guidance, please don’t hesitate to contact your account executive. ...

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Beyond the spotlight: The quiet dangers of public personas

Public personas were once the domain of A-list celebrities—actors, athletes, musicians, and politicians. With influencers now joining their ranks, these high-profile figures remain under constant scrutiny. Such visibility comes with an undeniable increase in both exposure and risks. Today, with almost everyone’s personal or professional details just a Google search away—and social media offering an unfiltered window into their lives—a far broader group now faces heightened public visibility. Executives, financiers, tech entrepreneurs, and members of well-known families may not be household names, but their elevated profiles place them squarely in the crosshairs for lawsuits and more. For these individuals and those who support them, it’s critical to understand the unique risks that come with their prominence. Taking proactive measures to mitigate these vulnerabilities is not just prudent, but essential. The risk of high-profile visibility People magazine may not be chronicling your every move, but if you have any digital footprint, you are easily discoverable—and that exposure can have devastating consequences. In addition, the more lavish the lifestyle, the bigger the exposure: Frequent travel, entertaining, having your home featured in a design magazine—even hiring domestic staff, whose presence alone can signal affluence or who may unintentionally share personal details—can all draw unwanted attention. Such visibility doesn’t just invite risk—it can also, unfortunately, complicate your ability to secure high-limit insurance coverage. Carriers offering these policies often conduct intensive due diligence, and any sign of exposure, whether it's a public court case tied to your business or a perceived lack of discretion, can raise red flags, even if the incident happened years ago. The challenge is greater for those with bold-faced names, even those without obvious issues. Carriers may be wary of potential claim size and risk. Even when coverage is offered, it often comes with exclusions; for example, they may offer a liability policy but exclude specific libel and slander coverage to minimize their exposure. We recommend our celebrity clients work directly with our Sports & Entertainment practice. Their specialized expertise and relationships make it more likely that they can help secure the comprehensive protection that high-profile clients need. How to protect your property and assets Clients often lead dynamic, well-lived lives that include hosting large parties, taking elaborate vacations, driving high-performance vehicles, and sharing these moments online. To help manage the risks that come with this lifestyle, consider the following recommendations. In addition, working with a security consultant can also be beneficial, as they can assist with many of these measures and help develop a risk-aware lifestyle that feels comfortable rather than restrictive: Understand—and educate your children about—the risks of social media: Posts that reveal (intentionally or unintentionally) homes, cars, valuables, and travel plans can set you up as a potential target. Tweens and teens might think nothing of filming a TikTok in front of your fine art collection or boat, but others may take note. It’s also important to explain that “deleted” doesn’t always mean gone; we’ve seen insurance claims affected by resurfaced, long-forgotten posts. In the digital age, almost anything can be found, and often at the worst possible time. Screen all vendors and staff: Every contractor, subcontractor, catering company, and other entity entering your home must be properly insured. Perform background checks on all vendors for your parties and new domestic employees, for which you should obtain proper employment insurance (outlined below). Establish secure networks: Allowing guests to use your primary Wi-Fi network raises the risk of malware, data theft, and other concerns. We recommend they use guest networks instead. Install wired security cameras: Criminals use Wi-Fi blockers to disable digital cameras. Wired cameras provide a more secure and uninterrupted monitoring solution, reducing vulnerabilities to signal interference. Key insurance policies for public figures While each of our clients is unique, hence our commitment to creating bespoke programs, we generally recommend the following supplemental policies for those with public profiles: Employment Practices Liability: Essential for anyone with household staff, protecting against workplace-related claims. Crime coverage: Guards against financial loss from employee theft and contractor fraud, which are unfortunately common. Cyber coverage: Protects against wire fraud, identity theft, impersonation, and other cyber risks. Having worked with many high-profile clients, we understand the unique challenges that come with increased visibility. If you ever want to discuss concerns or learn more, please don’t hesitate to reach out. We are here to help you better understand your risks, so you are better prepared to protect what matters most. ...

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Why creating a home inventory is worth it

Take a moment to consider the rooms in your home. Could you list every piece of clothing in your closet, including designer labels? What about the vintage of each wine in your cellar or the number of sterling silver flatware pieces in your drawers? If you answered “no” — and chances are, you did — you’ve just uncovered the primary reason why we encourage every client to create and maintain a detailed home inventory. In the event of a total loss due to a fire, hurricane, or other disaster, this document is crucial for proving ownership. It not only streamlines the claims process but also accelerates your ability to replace the claimed items, all while providing invaluable peace of mind during an otherwise stressful time. If the idea of listing every item sounds overwhelming, you're not alone — and that’s precisely why we’re here to help! In this guide, we’ll walk you through the importance of a home inventory, what to include, how to create one, and how to store it securely. Why a home inventory matters While you can create a list after a loss, doing so is often overwhelming and emotionally draining. Trying to recall the contents of every room while coping with shock or grief makes an already difficult situation worse. Our clients who have proactively created home inventories have consistently found the claims process to be faster, smoother, and less taxing. If you don’t have one at the time of a total loss, a carrier will likely hire a third-party to sit with you and systematically recreate the contents room by room. Together, you will record brands, sizes, and quantities. However, this process will likely be delayed significantly, and potentially longer if you struggle to recall specific details. How to create a home inventory The goal of a home inventory is to document, in detail, everything you own. You can do this through written descriptions, photographs, videos — or ideally, a combination of these. Items to include: Collectibles, such as art, wine, and jewelry Electronics Furniture, rugs, decorative pillows, etc. Clothing, shoes, handbags, and accessories Books Kitchen items and appliances Miscellaneous objects in drawers and cabinets Outdoor items, including furniture, tools, equipment, and décor Key details to include: Physical description — measurements, size, color, material, customization Age Make and model Location and date of purchase Cost at acquisition and appraised value Best tools to build a home inventory Hire a professional. The National Association of Home Inventory Professionals is a good place to start to find someone to help you. Shoot a video walkthrough. Pan slowly across each room, capturing furniture, finishes, and artwork. Include all spaces, such as garages, closets, basements, and hallways, as well as open cabinets and drawers. Take four photos of every room. To build a comprehensive picture of the space, stand in every corner and point the camera towards the room. Don’t forget to include close-ups of valuable items. Write up a list. Sit in each room with pen and paper or a laptop (note: online templates are also available for this task) and record the contents of each room. Use relevant technology. Apps such as Magic Home Inventory, Memento Database, My Stuff Organizer, Nest Egg, Smart Inventory System, Sortly, and NAIC have been explicitly designed for this purpose. Whichever route you choose, take extra care with your most precious objects. For example, lay out each piece of jewelry separately on a table to photograph it. Where to store your home inventory Once created, your home inventory must be easily accessible, even if your home and devices are lost. Store a digital version in the cloud so you can access it without a phone or computer. If it’s a hard copy, keep it in a fireproof safe or store it off-premises. Similarly, keeping your inventory up-to-date is equally important as creating it in the first place. Over time, a houseful of possessions is likely to grow significantly. Add significant purchases to the list right away and take a more general stock of things annually. We sincerely hope you will never need to use a home inventory, but unfortunately, hope alone is not a strategy. Most people who have experienced a total home loss didn’t expect it to happen to them. In our position, we’ve seen all too often the value of being prepared. A current home inventory is a vital piece of that preparation, easing and expediting the road to recovery. ...

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Smooth transition for your valuable collection: a guide for collectors and heirs

If you are passionate enough to build a collection, you're undoubtedly just as committed to ensuring it remains secure long after you're gone. Protecting your legacy requires foresight, careful consideration, and proactive planning. Similarly, those who will inherit the possessions should also think ahead. The future of collections is something our team of dedicated experts addresses daily. Here’s their expert advice, whether you’re planning for the future or inheriting these treasures. How to ensure a smooth transition of your collection Before planning for the future, ensure that your collection is well-protected in the present: That means confirming that every piece is appraised, whether separately scheduled or protected by a blanket coverage. Given the increasing frequency of natural disasters, it’s wise to consult a risk management expert who can help you address unforeseen threats to your collection, even if you live in an area that has not historically faced such risks. Determine whether potential beneficiaries want what you have: This conversation must be frank and open, as the information is crucial to mapping out the future. If your beneficiaries do not want the collection, setting up a trust or LLC to manage a museum donation or auction-house sale is one possible next step. In either case, ensure proper interim storage and arrange for expert transport to ensure your collection is safe and secure until it reaches its next destination. Make sure all relevant documentation is in order: Gather all invoices, appraisals, provenance-proving documents, and an up-to-date schedule of items. Store all materials securely and let your beneficiaries know where they are kept. Consider a life insurance policy to maximize your beneficiaries' financial flexibility: In doing so, the policy can provide the liquidity needed to help heirs pay estate taxes, cover ongoing collection maintenance costs, and even facilitate a museum donation while compensating your heirs for their loss. Insurance can also help balance inheritances if not all beneficiaries wish to inherit the collection, ensuring that your wishes are honored and financial stability is maintained. Key considerations for those inheriting a collection Make sure there is no break in coverage: When a collector dies, it is important to look at the ownership of the art. Oftentimes, if the collection was in an individual name, the insurance may have to be amended to reflect their estate while it is settled. The executor should coordinate with the proper broker to reflect the estates or other appropriate ownership. After the collection is officially settled, the insurance should be updated to reflect the new ownership Secure proper transport: If the original collector hasn’t accounted for transport, be sure to hire experts with experience handling the specific kind of collection. If it’s art, secure a condition report before it’s packed and upon arrival to divulge any damage that might have happened in transit. Evaluate the specific risks your living environment presents to the collection: Implement the appropriate loss prevention techniques for your region. For example, in earthquake-prone areas like California, it’s important to use specialized protective measures, such as earthquake hooks for artwork, and develop evacuation plans to address other potential catastrophes, including wildfires or hurricanes. Additionally, educate your household staff on best practices for cleaning and handling valuable items to minimize the risk of damage. Consider where and how the collection will be displayed: Ask your broker to visit your home to provide guidance. They’ll tell you, for example, to avoid hanging art in front of panoramic windows, where it could be damaged by the sun, under a sprinkler, in front of a water pipe, or above a fireplace. If you entertain frequently, they will also steer you away from high-traffic areas. Explore options if you don’t want to keep it: There are many possibilities to consider, such as consigning pieces to an auction house, gallery, or private sale or donating them to a museum. However, ensure that you have secure storage during this transitional phase, and consult your broker to review contracts to clarify insurance responsibilities at each step of the process. Also, if you intend to consign pieces of uncertain provenance, be aware that sending them abroad could risk government seizure. Whether you are planning to pass down a collection or are inheriting one, as with any aspect of estate planning, proper forethought minimizes issues later on. If you have questions about managing the passing on or inheriting of a collection, please call us. ...

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Featured topic: Cyber Safety

What to do if you are the victim of cyber fraud

Scams existed long before the Internet, but today’s hyper-connectivity has made defrauding innocent victims much more prevalent. In fact, in just one year the FBI reported losses in excess of $10 billion from cybercrimes and that number only accounts for reported fraud. Unfortunately, these swindles can absolutely happen to anyone—and will, as long as the scammers continue to hone their tactics. Fortunately, many carriers have responded to this digital scourge by offering improved insurance options. While first-generation solutions provided only minimal coverage, some carriers now offer reimbursements as high as $1 million or more for losses incurred through extortion, phishing, and other types of fraud. Every policy is unique, and thus, you should speak with your broker to understand your coverage. And of course, if you suspect you are a victim, immediately reach out to your insurance professional for resources and assistance. Identifying and reacting to the four most common cyber scams The below outlines the first steps you should take after calling your insurance advisor, should you fall prey to the four most common types of cyber fraud. 1. Phishing Scammers gain entry into your accounts after you click on “urgent” email or text requests that appear to come from legitimate organizations (i.e., your bank, FedEx, Amazon). What you should do: Depending upon what was exposed, you may freeze your credit (social security number), change your login information and/or password, and contact your bank. 2. Identity theft Criminals steal your personal information, gain access to your banking information, and open new accounts in your name, securing loans, requesting wires and more. What you should do: Freeze your credit and contact whatever entity was co-opted in the scam, as further investigation into the activity will likely be necessary. Alert applicable financial institutions to ensure no other funds are stolen. 3. Malware and extortion Harmful software is installed on your device after you are lured into visiting spurious websites or engaging with infected downloads or email attachments. With ransomware, one of the most profitable malware iterations is when the criminal encrypts your files, then demands money to free them again. This can also lead to extortion if they uncover compromising information, and demand money to keep it out of the public eye. What you should do: Download and run security software on the affected computer, removing any malware if possible. Consider hiring a crisis management firm to guide a public response should there be a concern about reputational damage related to the fraud. 4. Fake shopping sites You think you are buying a product on Amazon or Instagram but are actually dealing with a dropshipper, a third-party purveyor who sends an inferior product or nothing at all. What you should do: Contact the institution who handled your payment—credit card company, bank, gift card issuer, etc.— to reverse the charges or refund your money. Avoiding cyber fraud going forward Our goal, of course, is to help you make it as hard as possible for anyone to defraud you. To that end, whether or not you’ve already experienced cyber fraud, we recommend the following best practices: Accept two-factor authentication wherever it is offered: After logging on with your name and password, the site sends a unique code to your mobile or email for you to input. Keep your software updated: Immediately install any updates for your computer, mobile, and smart home systems as those updates are often released to fix a discovered vulnerability that could put you and your information at risk. Use a password manager: It’s best not to use a password for more than one login. A password manager will help you create a strong password that is then stored in your encrypted keychain. Establish security protocols for all financial transactions: Create processes with your advisors and institutions that require multiple approvals for any significant transfers or wires. Be wary of links: If you get a notice about any of your accounts or from any of your institutions, carefully confirm the sender before clicking any links as scammers have become quite adept at formatting communications to appear legitimate. When in doubt, don’t click, and contact the institution through their own website or listed phone number. As long as we remain dependent on technology to enrich our lives, there will always be those who seek to take advantage of that dependence. But by familiarizing yourself with their nefarious tactics and taking immediate action should something happen as well as employing all possible precautions, you can effectively navigate the challenges today. ...

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Why fighting cybercrime is a family affair

Gather the family: It’s time to chat about cybersecurity.Today’s cyber risks are all too common and unfortunately, constantly morphing. From attacks and extortion to bullying and more, your family and property are likely at risk if you are on the internet. The FBI’s Internet Crime Complaint Center receives more than 300,000 complaints per year with reported losses exceeding $1B. The biggest group of victims was people over 60 (49,523 of them lost $342 million), but more than 9,000 cybercrimes were reported with victims under the age of 20. So whether it’s your parents or your teenager, it takes the whole family to keep cybercriminals away. Those with substantial wealth and any degree of public prominence are generally the most attractive targets for the latest crop of techno-crooks. As such, personal cyber security policies are now as essential as home or automobile insurance. That’s why we urge clients to speak with us about resources for prevention, education and protection. But in case the gang is coming over for Sunday dinner, and you want to have this discussion sooner rather than later, these are the key areas to cover over the cornbread. Beware of (false) requests One of the fastest growing cybercrimes is called “social engineering” where crooks convince you to send them money by pretending to be someone you know. Often, they break into your email system to gather tidbits of personal information to make their appeals seem believable. Create a universally understood protocol before anyone in the family approves a money transfer, and make sure it involves face-to-face or voice verification. Don’t rely on email. Criminals can program automated responses from a hacked email account that seem realistic. Put an extra wall around your money Use unique passwords for each of your banks, investment companies and/or any account that could lead to a substantial loss. Similarly, consider using a separate email account just for communicating with your bank. Avoid conducting financial transactions on public Wi-Fi networks—while it’s getting harder to hack into data moving over Wi-Fi, it’s not impossible. Banking on your phone connected to cellular data is somewhat more secure. If anyone in your family is into Bitcoin or other crypto-currencies, they need to take extra security precautions. These systems turn money into unique code numbers and if they are stolen or lost, you can’t get them back. These losses are shockingly common. Use new ways to protect your passwords Lots of money is stolen by crooks who fool people into revealing their passwords. Remind family members to watch out for phishing emails from a “bank” or other site requesting information. Even better, make sure to enable the service that require you to log in both with your password and a code sent to your cell phone. Make your passwords really long. Never mind the old advice to make funny looking pA$$w0rdz with symbols and numbers. Many crooks use computers to guess all the possible passwords until one works. Foil this scheme by using a phrase of five or six words that you can remember. Normal spelling is fine. Use software that assigns a different password to each site you use, such as 1Password and Dashlane. That way if someone steals one password, they can’t get into any of your other accounts. Talk to your kids about their social interactions (and listen too) Watch for secret “ghost” apps that hide photos or videos in a calculator or enable private messaging. Listen carefully to your kids who are likely ahead of the trends! They may hear about other kinds of scams and technology problems that the whole family should be aware of. Today’s best policies assist with data restoration, credit monitoring and damages related to cyber bullying. Because cyber scams are evolving as fast as our devices (or faster!), it’s worth staying in regular touch with your Alliant Private Client account executive. Fortunately, the insurance industry is evolving right along with the criminals so those discussions will help to ensure your coverage is up to date. ...

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A guide to protecting your family office from a cyber breach

In the messy aftermath of the massive Equifax breach, which exposed the private information of nearly half of all American adults, many concerned family offices have inquired about what to do next to protect data security. And for good reason: criminals target and obtain wealthy individuals' information in order to open high-limit credit cards, borrow directly from banks or hack into the target’s email for nefarious purposes. That’s why we see an even greater need for family offices to systemically review their management of sensitive information and ensure that standard protections are in place. Because there is no one-size-fits-all fix—even with a cyber liability insurance policy in place—we believe peace of mind is best accomplished through a multi-pronged approach that incorporates education, risk mitigation and a judicious mix of coverage. Step one is to ensure that all family office staff and family members are trained to avoid clicking on so-called phishing emails (a.k.a. scams) that infect computers with malware or link to a page designed to steal private data. While this sounds simple, even the savviest fall prey. After all, phishing emails were responsible for the hacks at the Democratic National Convention and Sony Pictures, and a Gmail scam was so sophisticated that it fooled techies. Accordingly, we suggest hiring a reputable, white glove security firm to conduct a full review of both the family office staffs’ and family members’ devices and accounts, including social media networks. The best firms also provide in-depth training to any individuals who repeatedly engage with potentially harmful emails, and run educational sessions for the entire family. They’ll even make it fun for the know-it-all 8-14-year-olds, who are almost certainly not as careful as they should be. Meanwhile, family offices should update their own security processes. Regularly scheduled software reviews by an IT expert are, of course, a minimum requirement. Equally important, and sometimes overlooked, is instituting a process for the movement of cash. Currently, the best practices include creating a pre-established list of employees authorized to transfer funds or initiate payments, and implementing client identification methods. A callback confirmation provision, which is akin to the protocol typically employed by financial institutions, is one example. We’ve seen many cyber criminals use a family member’s hacked email account to send a fraudulent money wire request, and without a verification process that transaction is likely to go through. Formalizing protocol for voice and electronic transfer requests is essential, as insurance companies will require detailed explanations of these actions before issuing fidelity bonds and newer social engineering fraud coverage—both crucial. The fidelity bonds cover losses—property or financial—incurred through fraud, forgery and employee dishonesty. Social engineering fraud coverage is now considered a standard element in any private insurance policy and is specifically oriented to mass or targeted email hacking schemes. Although you might expect otherwise, these thefts are usually not covered by cyber policies. Family offices should still consider obtaining a cyber liability policy because it provides customized assistance should a hacker steal data or hold it hostage for ransom. A breach coach, usually a law or forensic accounting firm, move quickly to a) identify what happened; b) assess the impact to the server; c) restore or repair the network; and d) do what is required to make future attacks unlikely. Without such a policy, family office officials are left to find their own experts and answers, which is not easily done nor an ideal circumstance during a crisis. Unfortunately, those policies won’t protect the office, or family members, should the breach happen to a third party like Equifax. These companies generally have their own cyber policies and are prepared to notify those impacted, but these services were significantly overtaxed and thus unresponsive after the Equifax news. Because high-wealth (and especially high-profile) individuals often need to take immediate action, family offices should also consider obtaining identify theft coverage for each family member. Personal Insurance carriers offer a range of coverage as a supplement to homeowner’s insurance policies. Coverage features range from data restoration, cyber extortion, cyber bullying to crisis management and reputation restoration with a variety of coverage limits available. This specialty coverage can also include credit monitoring and credit freezing if—or more likely when—the next major breach happens. ...

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The dark side of innovation: AI and modern scams

An international financial company faced a serious security breach during an internal video call when fraudsters used deepfake technology to impersonate the CFO and other senior leaders. This deception resulted in a finance employee transferring $25 million, mistakenly believing it was a legitimate request. This is just one example of how scammers are leveraging technology, especially artificial intelligence (AI), to swindle record amounts of money. According to IC3, the FBI’s Internet Crime Complaint Center, such reported losses surged by $300 million in the first five months of 2024 alone. To counter the growing risk, the FBI has announced a nationwide campaign to raise awareness of scams fueled by AI and other technologies. This initiative highlights the importance of understanding these threats and encourages individuals to take proactive steps. In light of this campaign, we wanted to share some of the most common scams along with tips designed to help you stay protected. Common scams Voice cloning: Scammers use voice cloning technology to impersonate a loved one in distress. They may call with urgent requests for money or personal information which is then exploited to gain access to accounts. Deepfake scams: Scammers utilize generative AI to create realistic altered images or videos of public figures, friends, or family. These deepfakes can convincingly mimic appearances and voices to solicit money or sensitive information. The challenge of distinguishing real and fake content poses significant risks. “Wrong number” texts: Scammers send unsolicited texts that appear to reference prior conversations or meetings. By fabricating a context, they aim to prompt the recipient to respond, leading to potential phishing attempts for personal information or financial details. Romance scams: Con artists exploit online dating platforms to build emotional relationships with victims. They often create fake identities, complete with elaborate backstories, and may even propose marriage. As trust builds, they fabricate emergencies or financial hardships, ultimately requesting money transfers. Victims can face significant emotional trauma and financial loss, as scammers can persuade them to send large sums of money over time. Election scams: Fraudulent political action committees (PACs) can mislead individuals into donating funds for fake causes. The funds solicited may be funneled directly into the scammers’ personal accounts, leading to financial loss for unsuspecting donors. Moreover, such scams can undermine trust in genuine political fundraising efforts. Holiday scams: Tactics during the holiday season include failing to deliver items that have been paid for, misrepresenting items on auction sites, as well as gift card fraud. Victims may end up losing money on purchases that never arrive or unwittingly provide gift card information, which can be redeemed immediately by the scammer. How to protect yourself Scammers thrive on urgency to exploit their victims. Therefore, the best defense against AI-powered scams is to pause and resist the pressure to act quickly. For example, if you get a call from someone claiming to be your child or grandchild in trouble, verify the situation by putting them on hold and making another call before sending money. It’s also important to be cautious with links sent from banks, online retailers, delivery companies, or any organization. Instead of clicking on links, it’s safer to visit their official websites directly to manage your accounts, make payments, or donate. Always remember, never invest in or give money to someone unless you can verify their identity. If you're unsure, consult your financial advisor before transferring any funds. And if you do feel the need, consider giving only what you’re comfortable with potentially losing. Another key point is to review your cyber-insurance policy. Coverage for scams and fraud can vary widely, so it's wise to discuss your specific needs with your account executive. Keep in mind that policies usually don’t cover voluntary money transfers, even in fraudulent scenarios. If you do fall victim to a scam, contact the relevant institution immediately to request a reversal or a refund for credit, debit, gift cards, or wire transfers. While results may vary, it’s worth trying. Cryptocurrency payments, by the way, are generally not reversible, which is why many scammers demand them. ...

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How data impacts your personal insurance program

In today’s interconnected world, your online presence is more than just a reflection of you. From the data you share on websites and the social media posts you make, every digital interaction leaves behind a trail that can influence how carriers assess your risk, set premiums, and even handle claims. As carriers navigate mounting losses due to the ongoing severe weather events and other modern risks, they strive to minimize future liabilities by leveraging all available data for their policy evaluations. This overview will help you understand how your online activity and digital footprint impacts your insurance profile so that you can understand which choices will better protect your insurance program. 1. Images from drones impact home insurance premiums When it comes to home insurance premiums and policy decisions, carriers utilize various data sources including drone footage and property history to accurately assess risk. This may allow carriers to spot concerns that were previously nonissues. However, the information also makes it easier and cheaper for carriers to make an appraisal, and those benefits can be passed along to the buyer. Carriers can pinpoint specific areas of concern like wind damage, fire risk, or theft exposure, and adjust rates accordingly should those risk assessments warrant. That said, if you're shopping for home insurance in a region recently affected by a natural disaster, carriers will have data about related losses nearby and require specific documentation confirming there are no known issues with your property. 2. Data about driving habits affects automobile insurance rates Auto insurance carriers not only track accidents and tickets, but are now analyzing driving characteristics including speed, acceleration, braking patterns, and more. Some drivers voluntarily enroll into programs that allow carriers to monitor their travels, often in exchange for lower premiums if the data indicates safe behavior. (Of course, premium increases are a possibility should the opposite prove true). Drivers, however, do not always know that their data is being collected. Given these potentially ambiguous circumstances, we believe that best offense is defense — i.e., defensive driving. It will mitigate the chance that data about your driving leads to higher premiums and minimize the likelihood of an incident. 3. Medical records alter life insurance policies When applying for life insurance, it’s not just your age and health status that matter. Routine medical visits, an innocuous visit to a chiropractor, or even a routine prescription could raise red flags in your application, potentially increasing your premiums or complicating your eligibility. Medical data, including billing codes inputted by medical practitioners can raise flags, whether those flags are justified or not. And electronic record keeping ensures that a lot more information than that is available, and any of it can make carriers less willing to offer policies or at least more likely to ask for higher premiums. 4. Social media influences liability coverage Similar to medical records, your social media presence could be examined by carriers before they offer you coverage or renew policies. As a reminder, anything you post online, such as texts, emails, Tik Tok videos, even a seemingly innocent post or comment, can leave a digital trail that might affect your insurability. You don’t want to find yourself in a position in which a hack or a lawsuit can expose you to damages. Therefore, maintaining a thoughtful and privacy-conscious social media presence can help minimize potential risks in the eyes of carriers. While this increasing reliance on data might seem overwhelming, it does offer some advantages, especially for those with lower risk profiles. With more precise data, carriers can now tailor rates to individual risks rather than relying on one-size-fits-all premiums. This means that people with lower risks may enjoy more affordable rates. As the industry evolves, insurance is becoming more personalized, which can benefit those who continue to take proactive steps to manage their risks. The digital landscape is surely a complicated one, but it’s one our team at Alliant is adept at navigating. You can count on us to continue to provide you not only with the most appropriate coverage options, but with the up-to-date knowledge needed to make the best choices. ...

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Obtaining life insurance in the age of big data

In the digital age, the drive to protect our loved ones remains as strong as ever, but the process is once again in transition. Insurance companies aren’t far off from making underwriting decisions from the computer algorithms and vast databases that have transformed our modern lives. For anyone who wants new coverage—or to ensure that their existing policies are in order—the potential impact of the new technologies is worth understanding. Here is what you can expect when obtaining life insurance in the 21st century. The process is starting to get faster Long before Silicon Valley’s algorithms and big data, insurance companies were concocting formulas to estimate life expectancy. They would deliver a price for a policy after inputting factors like age, weight, family history, medical condition and propensity to engage in risky behaviors. About five years ago, a select few insurance companies realized that their models were good enough to make some underwriting decisions without a medical exam. The firms offered speedy underwriting programs that required only an application (often online), a telephone interview, and permission for the company to gather electronic information about your health and lifestyle. These programs have become so popular today that many carriers are making them available to more customers with higher policy limits up to a $1M. In the future, parts of the process may be even quicker with talks of insurance carriers analyzing your selfie to determine whether you qualify for the best rates! You might want to hold off on that ancestry test While thus far scientists have only identified a few genes that indicate a heightened risk of certain medical conditions, it’s ultimately the information stored in our DNA that can best predict longevity. While none of the insurance companies in the United States force people to take genetic tests, the carrier can consider those results for underwriting IF they are part of your medical record. (Canada and several European countries have banned this practice, and a few states are considering similar rules.) For now, you should be careful about voluntarily submitting to DNA testing through services like 23 and Me. At the very least make sure they will destroy the sample. Or even better, wait until after you’ve bought your insurance policy before checking out whether grandpa’s tales of Viking ancestry are true. Carriers know more about your life Buying life insurance has always involved a privacy tradeoff: you allow an insurance company to ask your doctor questions and in exchange, you get to protect your family if there is an unexpected loss. Now the fine print on the insurance application also authorizes the underwriter to examine our digital personas. They are not only looking for signs of health and lifestyle risks, but they also want to double check that the information you put on your applications is accurate and complete. These are the main types of data life insurance companies peruse, and how they might impact your application: Past insurance applications. Every time you apply for life insurance, some of that information is sent to an MIB (Medical Information Bureau) data clearinghouse. So if you get turned down for insurance from one company, don’t think you can “forget” to mention your heart transplant when you apply to a different carrier—they will have access to other companies’ notes. Prescription drug records. Underwriters can typically see all the drugs you’ve taken and the doctors that prescribed them. The files don’t show what conditions the drugs were prescribed for, so this data often raises more questions than answers. Some of those questions can be quite pointed, however, especially, if the company sees you’ve been treated by doctors for conditions you left off of your application. Social networks and the rest of the internet. Your insurance company knows how to use Google too. And there are a bunch of startups that scan publicly available information on social networks for evidence of risky behavior - so if you’ve posted pictures of yourself skydiving, your life insurance rates could be sky high as well. Don’t forget that behavior and lifestyle are strong indicators of life expectancy! State motor vehicle records. For people under 45, car accidents are the leading cause of death, so insurers look for any record of driving while intoxicated, reckless driving, or, increasingly, distracted driving. They even look for speeding tickets! Help is near While the application process is utilizing big data and adapting to new technologies, the value of life insurance remains constant and irreplaceable. The good news is that data will not stop most applicants from obtaining a good policy. However, it can add complexity. We are available to help navigate this quickly-evolving digital landscape as it pertains to your life insurance coverage today and in the future. ...

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