Policyholders Get Digital Fraud Coverage Boost At 8th Circ.
Law360, Los Angeles (May 23, 2016, 9:30 PM EDT) -- The Eighth Circuit's finding Friday that a bank employee's failure to secure a computer network doesn't nix insurance coverage for a fraudulent transfer loss caused by a hacker bolsters policyholders seeking coverage for digital fraud by laying blame at the hacker's feet despite the employee's negligence, experts say.
In a published opinion, a panel of the appeals court ruled Friday that BancInsure Inc. must foot the bill for a loss suffered by Minnesota-based State Bank of Bellingham after a hacker broke into the bank's computer network and orchestrated a fraudulent transfer to an overseas account.
BancInsure had argued that an exclusion...
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