11th Circ. Adds To Chorus Addressing Cyber Insurance

Law360 (May 16, 2018, 2:29 PM EDT) -- On May 10, the U.S. Court of Appeals for the Eleventh Circuit affirmed the decision of the U.S. District Court for the Northern District of Georgia in InComm Holdings Inc. v. Great American Insurance Company. The Eleventh Circuit agreed that Great American’s computer fraud coverage did not apply to holders of prepaid debit cards who exploited a coding error in the insured’s computer system and fraudulently increased the balances on the cards which caused InComm to incur a loss of $11.4 million.

Background Facts

InComm operates a network that allows consumers to put money onto general-purpose reloadable debit cards issued by...

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