Tag Archives: social engineering fraud

While You Were Out

September is here. Labor Day has come and gone. Time to put away the swim trunks, parasols, flip flops, bungee cords, ukuleles, sun screen, boomerangs, bongos, snorkels, vorpal blades, and unicycles, and get back to work. Yes, it is time to answer all those emails and return all of those phone messages. And most importantly … Continue Reading

6th Circ.: Crime Policy’s Computer Fraud Section Covers Email Scheme Losses

In the second policyholder-favorable federal appellate court decision on the issue in a matter of days, the Sixth Circuit has held that the Computer Fraud provisions of a commercial crime policy cover a company’s losses from an email payment instruction fraud scheme. Just last week, the Second Circuit ruled in the Medidata case that Computer … Continue Reading

Second Circuit: Computer Fraud Coverage Section Covers Fraudulent Email Funds Transfer

In a much anticipated decision, on July 6, 2018 the Second Circuit, applying New York law, affirmed a district court ruling that the computer fraud provisions of a commercial crime coverage section covered the losses Medidata incurred when the company’s employees transferred funds in response to a spoofed email. The appellate court’s opinion could prove … Continue Reading

Guest Post: Groundbreaking Cyber Insurance Decision

Over the last several days, I have published several posts discussing important insurance developments relating to social engineering fraud, sometimes called payment instruction fraud. In the following guest post, Peter S. Selvin of the TroyGould PC law firm takes a detailed look at one of these recent decisions, the July 2017 decision in the Southern … Continue Reading

Guest Post: First Canadian Cyber-Coverage Decision Joins Series of U.S. Judgments on Social Engineering Frauds

As many readers are aware, there have been a number of recent case decisions addressing insurance coverage issues arising out of social engineering fraud, sometimes known as payment instruction fraud. The recent round of judicial decisions includes a ruling by a Canadian court. In the following guest post, Jamieson Halfnight and Anne Juntunen of the … Continue Reading

District Court Holds Crime Policy Covers Payment Instruction Fraud

One of the more vexing threats in the current business environment is the rise of “social engineering fraud” or “payment instruction fraud.” In these schemes scammers using official-seeming email communications induce company employees to transfer company funds to the imposters’ account. Among the many issues involved when these kinds of scams occur is the question … Continue Reading

The Growing Risk of Payment Instruction Fraud and Related Insurance Coverage Problems

There recently has been a “dramatic rise” in the incidence of business e-mail compromise (BEC) scams, according to an April 4, 2016 alert from the Federal Bureau of Investigation (here). In these schemes, which are also often referred to as “social engineering fraud” or “payment instruction fraud,” scammers using official seeming email communications induce company … Continue Reading
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