Two different jobs
Insurance and prevention solve two different problems, and it's easy to conflate them because both get marketed under "protection." Insurance answers "what happens if this goes wrong?" Prevention answers a different question: "how do we stop this from going wrong in the first place?"
What insurance actually covers
A wire fraud insurance policy typically pays out, up to a defined limit, if a covered transaction turns out to be fraudulent. That's genuinely valuable. It doesn't undo the operational disruption, the time spent on claims and investigation, or the conversation with a client explaining what happened. It also doesn't apply if the specific circumstances fall outside the policy's terms, which is worth reading closely.
What prevention actually does
Prevention means the fraudulent instruction never gets treated as legitimate in the first place. Verifying who's actually on the other end of a transaction, and locking the wiring instructions to a tamper-evident record, stops the transfer from being authorized at all. There's no claim to file, because there's no loss.
Why WireVault's prevention is provable, not just claimed
A lot of fraud-prevention tools ask you to trust that their verification actually happened the way they say it did. WireVault records every verification to a private blockchain, so the record isn't just a claim in a database somewhere, it's a tamper-evident entry that can't be quietly edited after the fact, by WireVault or anyone else.
Why "we have insurance" isn't a complete answer
Insurance coverage is reassuring, but it's reactive by design. It exists for the cases where prevention didn't catch something, not as a substitute for trying to catch it. A firm that treats insurance as its primary defense is choosing to accept a level of loss, and the time, reputational cost, and client conversations that come with it, that verification could have avoided.
The stronger position is both
The most defensible setup isn't insurance instead of prevention, or prevention instead of insurance. It's verification that stops most attempts before they succeed, paired with whatever coverage a firm or client already carries for the residual risk that no process catches every time. WireVault provides the verification layer; the customer's own policies decide how a loss is handled if one ever occurs.
- If we already have cyber insurance, do we still need wire verification?
- Yes. Cyber insurance addresses the aftermath of a loss. Verification addresses whether the loss happens at all, and most policies don't cover every circumstance a claim might involve.
- Does WireVault replace the need for insurance entirely?
- No. Insurance and verification address different problems. WireVault creates a tamper-evident verification record; whether and how a loss is insured depends entirely on the customer's own policies.