What type of loss occurs due to fraudulent instructions to a financial institution to transfer money from the insured's account?

Fund Transfer Fraud is the correct choice because it specifically refers to the manipulation or fraudulent misuse of instructions to transfer funds from an account. This type of loss often involves deceitful communications with a financial institution, where the perpetrator tricks the bank into executing such transfers under false pretenses. The defining characteristic of fund transfer fraud is that it revolves around the illegitimate movement of money directly from the insured's bank account without their consent, utilizing fraudulent means to achieve that.

In this context, while wire fraud often encompasses the general act of committing fraud through electronic transfers, fund transfer fraud is more precise, as it specifically points to unauthorized transfers facilitated by deceptive instructions targeting the funds. This makes fund transfer fraud a clear categorization of the scenario described in the question. The other options, while related to fraud and theft, do not specifically address the act of illicitly transferring money via fraudulent instructions, making them less accurate in this situation.