Silicon Co. Can't Tap $1M Coverage For Transfer Fraud
By Jeff Sistrunk (February 4, 2021, 7:04 PM EST) -- The Fifth Circuit affirmed Thursday that a Mississippi silicon manufacturer cannot force its crime insurer to pay $1 million to cover its losses from money transfers it sent to cyber criminals posing as a vendor, agreeing with a lower court that the company's coverage is capped at a $100,000 limit for deceptive "social engineering" scams.
A three-judge panel of the appeals court agreed with a lower court that Mississippi Silicon Holdings Inc. cannot tap into the $1 million computer transfer fraud provision in its crime policy with Axis Insurance Co. to defray its losses in the fraudulent scheme, which totaled $1.025...
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