Cyber Liability Insurance: Read the Fine Print

Posted by Greg Edwards on Feb 1, 2016 10:30:00 AM
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Ameriforge Group Inc. has recently filed a lawsuit against their cyber insurance provider, Federal Insurance Co., for refusing to cover a $480,000 loss following an email scam that impersonated the firm’s chief executive officer. Glen Wurm, the director of accounting for Ameriforge Group Inc., received a series of emails from someone claiming to be Gean Stalcup, the CEO. These emails instructed Mr. Wurm that he was to take part in a “strictly confidential financial operation… which takes priority over other tasks.” Mr. Wurm was to wire $480,000 to an account at the Agricultural Bank of China. After wiring the funds on May 21st, 2014, Mr. Wurm didn’t receive further correspondence until May 27th when the imposter confirmed the receipt of the funds and asked him to wire an additional $18 million. Mr. Wurm became suspicious at this request and alerted the officers of the company. 

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Topics: Cyber Threats, Cyber Liability Insurance