No Coverage For Fraudulent Withdrawal Of Electronic Funds

Law360, New York (December 4, 2013, 11:39 PM EST) -- On Nov. 21, 2013, District Court Judge Orinda Evans ruled that an all-risk insurance policy did not provide coverage to a real estate brokerage company for online fraudulent withdrawals from the company’s bank account. Metro Brokers Inc. v. Transportation Insurance Co., No. 1:12-CV-3010-ODE (N.D. Ga. Nov. 21, 2013).[1] The evidence suggested that a hacker obtained Metro’s online banking log-in credentials through a key logger “Zeus” virus that was found on several of Metro’s computers. The court gave effect to two exclusions concerning cyber risks and recognized...
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