Insurance Coverage – Computer Fraud – E-Mail “Spoofing” -

Medidata Sols., Inc. v. Fed. Ins. Co., 729 Fed. Appx. 117 (2d Cir. 2018), 2018 U.S. App. Lexis 18376, 2018 WL 3339245 -

Risk Management Issue: Is e-mail “spoofing” covered under the computer fraud provision in an insurance policy? -

The Opinion: On September 16, 2014, an employee in Medidata Sols., Inc.’s finance department received an email purportedly sent from Medidata’s president stating that Medidata was close to finalizing an acquisition, and that an attorney named Michael Meyer would contact the employee. The email advised the employee that the acquisition was strictly confidential and instructed her to devote her full attention to Meyer’s demands. On that same day, the employee received a phone call from a man who held himself out to be Meyer and demanded that the employee process a wire transfer for him. The employee explained that she needed an email from Medidata’s president requesting the wire transfer and approval from Medidata’s Vice President and Director of Revenue.