Hacked Tech Company Not Entitled to Cyber Coverage for Debt Payment Wired by Client to Hackers' Bank Account

Alorica Inc., a engineering services company, was the victim of an evident phishing attack in October 2017. Immediately after gaining access to Alorica’s e-mail method, hackers established regulations to prevent Alorica from seeing their communications and then emailed Alorica’s customers, inquiring them to send resources owing to Alorica to fraudulent bank accounts. One of individuals customers, Categorical Scripts, responded to the hackers’ e-mails and wired much more than $four.eight million to the hackers’ bank account….
By: Hinshaw & Culbertson – Insights for Insurers
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