This is the property of the Daily Journal Corporation and fully protected by copyright. It is made available only to Daily Journal subscribers for personal or collaborative purposes and may not be distributed, reproduced, modified, stored or transferred without written permission. Please click "Reprint" to order presentation-ready copies to distribute to clients or use in commercial marketing materials or for permission to post on a website. and copyright (showing year of publication) at the bottom.
Subscribe to the Daily Journal for access to Daily Appellate Reports, Verdicts, Judicial Profiles and more...

Insurance

Apr. 3, 2024

A new twist on coverage for losses from ‘spoofed’ emails

A recent case in California highlights the potential for coverage under a Directors and Officers (D&O) policy for computer fraud committed by a third-party hacker.

Peter S. Selvin

Partner, Ervin, Cohen & Jessup LLP

Phone: (310) 281-6384

Email: steve@newsroompr.com

Chair of Insurance Coverage and Recovery Department

Shutterstock

The facts are frequently the same. A company that has retained the services of a vendor receives an authentic-looking email from the vendor’s CFO which advises that the vendor has changed its bank account or method of payment. Believing that the email is genuine, the company wires funds as directed by the vendor’s CFO. It then turns out that a hacker has impersonated the vendor’s CFO and the company’s payment has gone to an overseas account controlled by the vendor.

To continue reading, please subscribe.

Already a subscriber?

Or access this article for $45
(Purchase provides 7-day access to this article. Printing, posting or downloading is not allowed.)