Phishing For Coverage Under Crime Policies

By Marc Schein and Robert Chesler (May 22, 2017, 11:32 AM EDT) -- Crime policies, among others, typically provide what seems like a broad grant of computer coverage, such as "We will pay for loss … resulting directly from the use of any computer to fraudulently cause a transfer … ." Apache Corp. v. Great American Insurance Co., 2016 WL 6090901(5th Cir. 2016). Companies victimized by phishing schemes have sought coverage under the computer provisions of their insurance policies for their losses. They have met with no success in the courts.

The preliminary question is: what is phishing? In brief, it's a fraudulent attempt usually delivered by email, to induce a target to reveal...

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