Questions Remain On Computer Fraud Coverage For Phishing

By Robert Callahan and Melissa D’Alelio (August 26, 2022, 6:00 PM EDT) — Businesses are increasing vulnerable to social engineering schemes, also known as email spoofing or phishing schemes.

Phishing schemes involve fraudulent attempts to obtain sensitive information and/or solicit payments from unsuspecting businesses, often using emails appearing identical to a trustworthy source to trick the victim into affirmatively revealing sensitive information or authorizing payment.

A phishing scheme is distinct from hacking, which involves a forceful intrusion of another’s computer system to obtain sensitive information or direct payments without the victim’s assistance.

In recent years, federal and state courts have wrestled over whether computer fraud coverage found in property insurance policies provide coverage for…

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