Does Your Insurance Policy Cover Losses for Theft Based on Fraudulent Email Schemes? This Sixth Circuit Case Is One to Watch.

The Sixth Circuit is set to review a decision relevant to the issue of whether computer fraud insurance policies cover losses resulting from theft based on fraudulent email schemes. To date, the issue is one that has divided courts across the country. The District Court Decision In American Tooling Ctr., Inc. v. Travelers Casualty and Surety Co. of America, No. 16-12108, 2017 U.S. Dist. LEXIS 120473 (E.D. Mich. Aug. 1, 2017) the U.S. District Court for the Eastern District of Michigan held that an $800,000 loss caused by a vendor impersonation email fraud scheme did not fall within the terms of a crime policy’s computer fraud coverage.  The court granted summary judgment to Travelers. The Underlying Facts American Tooling Center, Inc. (“ATC”) is a tool and die manufacturer that fell victim to a fraudulent email scheme in which thieves posed as one of its vendors. Id. at *2.  ATC asked its vendor in China, Shanghai YiFeng Automotive Die Manufacture…

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