Insurance,
Civil Litigation,
9th U.S. Circuit Court of Appeals
Feb. 16, 2022
9th Circuit says computer-fraud policies may cover ‘spoofing’
Some courts have been unreceptive to finding coverage for “spoofing” because an insured’s acting on or treating as genuine a fraudulent email directing the payment of funds has not been considered the equivalent of the “use of a computer” in a manner that fraudulently “caused” a transfer of money or other property.
Peter S. Selvin
Partner
Ervin, Cohen & Jessup LLP
Phone: (310) 281-6384
Email: steve@newsroompr.com
Chair of Insurance Coverage and Recovery Department
Consider the following two scenarios resulting in identical losses -- but potentially two entirely different insurance coverage outcomes:
Scenario 1: A thief hacks or gains unauthorized entry into an insured's computer system and causes that computer system to execute a bank transfer to the thief's offshore account.
Scenario 2: A thief uses a process called ...
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