Which of the following is a requirement under the fraudulent impersonation endorsement?

The fraudulent impersonation endorsement is designed to provide coverage for losses that arise from fraudulent communications, particularly when an impersonator deceives an insured into transferring funds or disclosing sensitive information.

The requirement that all transfer instructions must be verified is a crucial component of the endorsement, as it helps safeguard businesses against unauthorized or fraudulent transactions. By mandating verification for all transfer instructions, this requirement ensures that the insured takes necessary steps to confirm the legitimacy of requests, thereby minimizing the risk of loss due to fraud. This proactive verification process serves as a protective measure, ensuring that even seemingly routine transactions are double-checked, which is vital in today’s environment of increasing cyber threats.

In contrast, the other options do not align with the primary intent of this endorsement. Verification of all employees or imposing a threshold on verification could leave gaps in protection, while the complete absence of verification would nullify the endorsement's purpose, which aims to reduce fraud exposure by implementing stricter scrutiny of transactions.