2026-10-15 · Source: Risk & Insurance Magazine
Summary in 3 Points • Business email compromise claims rose roughly 30% in 2025 compared to the second half of 2024, driven by AI phishing kits. • Coalition forecasts a 20% to 50% rise in funds transfer fraud frequency as automated BEC tools evolve. • Average BEC losses remain under $30,000, but a $30 million claim illustrates potential severity at the high end. --- Business email compromise (BEC) claims surged by approximately 30% in 2025, driven by automated phishing kits leveraging artificial intelligence. Coalition's analysis indicates that this trend mirrors historical patterns of cyber exploitation, with BEC frequency climbing significantly as attackers adopt more sophisticated tools. The report highlights that while average BEC losses are under $30,000, there are instances of much larger claims, such as a documented $30 million loss, indicating the potential severity of these attacks. Looking ahead, Coalition anticipates a 20% to 50% increase in funds transfer fraud frequency as automated BEC tools become more prevalent. Despite a decline in funds transfer fraud in 2025, the evolution of these tools is expected to change the landscape of cybercrime significantly. Additionally, the report notes that reputational risks from deepfakes and legal abuse are emerging concerns, with the potential for these tactics to spread across various liability lines, including employment practices litigation. The rise in business email compromise claims reflects a shift in cyber risk dynamics, impacting underwriting strategies and claims management in the London Market.
The rise in business email compromise claims reflects a shift in cyber risk dynamics, impacting underwriting strategies and claims management in the London Market.