On May 3, 1978, Gary Thuerk, a marketer at Digital Equipment Corporation, sent what Guinness World Records calls the oldest electronic spam. About 397 ARPANET users got an all-caps invitation to see the new DECSYSTEM-20 in Los Angeles and San Mateo. People complained, since ARPANET was meant for official U.S. government use.
Playing off an old Monty Python skit the term “spam” was coined to describe its annoying, intrusive behavior.
That email was just a pushy product demo, but almost fifty years later, email is used for fake wire transfers, ransomware, and identity theft kits. In 2025, the FBI’s Internet Crime Complaint Center reported internet crime losses of over $21 billion with the actual amount of unreported losses believed to be much higher.
Homeowners insurance is still the right choice for fire, theft, or a broken pipe. But it is not meant to cover a locked computer, stolen wire transfer, or months of identity recovery. Here are three stories that show how things have changed since Thuerk’s email and the risks households face today.
The closing wire that was not from title
Matthew and Stefanie Brock were buying a home when cybercriminals pretended to be their title company. News in Florida described how a single letter was changed in the email address, the wiring instructions had no fraud warning, and over $38,000 was sent to the wrong account. Only about $5,000 was recovered. The rest was lost.
The FBI and Secret Service call this type of scam business email compromise. It is the same kind of fraud that targets companies, but here it was aimed at a couple right when they were expecting to send a large wire. The Brocks’ advice matches what title companies warn: do not trust wire instructions sent only by email. Call a known number and confirm the bank, routing, and account before sending money.
Homeowners insurance does not cover wire fraud just because the loss is painful. Personal cyber policies that include coverage for cyber crime or social engineering are meant for a different situation: when the bank will not reimburse you, is there insurance for that kind of fraud?
Extortion isn’t only a corporate word
On Falcon Forward, Mike Tanghe shared that Falcon West has seen companies lose millions to ransomware, denial-of-service, and phishing. These issues are usually discussed in business settings, but national data shows that households are affected too.
IC3 (the FBI’s Internet Crime Complaint Center) recorded 86,415 extortion complaints in 2024, a big increase from the year before. Extortion, phishing, and personal data breaches topped the report. On a personal device, extortion can mean family photos are locked, a demand note appears on a home laptop, or someone in the house is threatened. Major ransomware cases like Change Healthcare in 2024 make headlines, but household cases often go unnoticed until the computer locks up.
Personal cyber policies that cover cyber extortion directly are made for these situations. They help with ransom demands and provide IT support, depending on the policy. This is different from hoping a homeowners claim will cover it.
The breach you may not have clicked on
IC3 recorded over 64,000 personal data breach complaints in 2024, with losses of about $1.45 billion. Sometimes a phishing text starts it. Other times, it is a vendor, school, nonprofit, or coach’s spreadsheet. Recovering your identity takes time, and monitoring is not the same as fixing the problem. If you keep private information for others, like a board or team list, a leak could also mean someone else files a claim against you.
A personal cyber policy that covers identity recovery, and sometimes privacy liability for information you hold for others, is designed for these situations. Always read the policy details. Do not mistake a brochure for a guarantee of payment.
Don’t skip these things
This is not a suggestion to stop using backups, multi-factor authentication, or calling before sending a wire. Those steps are still important. Insurance is for the disaster that slips past your defenses.
We published a plain-language page on personal cyber for current Falcon West clients, built around Tokio Marine HCC’s NetGuard® SELECT: cyber extortion and ransomware, stolen funds, system restoration, identity recovery, cyberbullying, and related defense costs. Limits and pricing are on the page.
Disclosure: These articles are for informational purposes only and reflect the opinions of Falcon West Insurance Brokers, Inc: not insurance, financial, or legal advice. Details may change; contact us for guidance on your specific needs. Read our Privacy & Data here.
Questions about this page? Email us at hello@falconwest.com