Recent court decisions have offered conflicting views on whether and how crime insurance policies should respond to social engineering scams, reflecting an ongoing industry discussion on how best to handle this rising tide of crime.
In late July, the United States District Court for the Southern District of New York ruled that the “funds transfer fraud” provision in a crime policy issued to Medidata Solutions by Federal Insurance, a Chubb subsidiary, would cover the loss of funds due to spoof emails directing a wire transfer. In a similar case decided Aug. 1, American Tooling Center v. Travelers, the United States District Court for the Eastern District determined that the “computer fraud” provision of a Travelers policy would not cover a similar social engineering scam.
Read more at https://www.advisenltd.com/2017/08/10/social-engineering-scams-prompt-coverage-litigation-crime-policy-changes/
Erin Ayers, Ransomware attacks jump 50 percent, but accidental breaches a ‘major problem’ (August 3, 2017), available with subscription at Advisen Cyber Front Page News.
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