Court Calls Cyberattack Social Engineering, Denies Claim
August 25, 2022
SJ Computers, a Microsoft Authorized Refurbisher that resells computers and provides tech services, sued Travelers Casualty for refusing to pay fully on a policy. According to the complaint, a hacker “infiltrated its computer systems, intercepted emails between SJ Computers and its vendors, and impersonated a company executive to cause fraudulent wire transfers, and SJ Computers sought coverage for social engineering and computer fraud coverage under the Travelers’ crime policy.” SJ alleged there to be a breach of contract and breach of good faith and fair dealing, arguing that the insurer lacked an arguable basis for denying coverage. Travelers filed a motion to dismiss, claiming that SJ’s policy clearly delineated between computer fraud and social engineering fraud. On August 16th a Minnesota court dismissed the case, calling it a clear instance of social engineering, a crime for which the insurer was only liable to cover a fraction of the $600,000 total losses.
Get our free daily newsletter
Subscribe for the latest news and business legal developments.
Read this next
In 2018, Robert Salim, 67, realized he was seriously ill. After numerous […]
New rules aimed at lenders, investment funds, and other financial entities would […]