The “business compromise email” is what the FBI calls the “$5 billion scam,” but apparently an insurance company did not agree with an insured company that they had been the victim of a crime.
A federal court recently found that a crime policy afforded coverage for a $4.8 million wire transfer that an insured company was duped into making. See Medidata Solutions, Inc. v. Federal Ins. Co., 15-CV-907 (SDNY July 21, 2017). In this case, the thief took advantage of “real” facts, posing as the insured’s attorney for a corporate transaction. More specifically, the insured was contemplating an acquisition and, as part of that process, the president instructed the finance department to be prepared, on an urgent basis, to assist with the transaction. Continue Reading Court Holds Crime Policy Covers Business Email Compromise (BEC) Loss