The Court held that a fraudster’s unauthorized use of the
insured’s online banking system to make payments against her
own credit card debts did not qualify as forgery or alteration
under the terms of the policy in question.
Malcolm Silver & Co. Ltd., et al.,
v State Farm Fire and Casualty
Company, 2019 ONSC 4264, per Sossin,
J.
Facts + Issues
The Plaintiff insured Malcolm Silver & Co. Ltd. was the
victim of sophisticated fraud perpetrated by Martinez and suffered
losses in excess of $1,000,000. The fraud included forgery of
cheques and also Martinez’s use of Malcolm Silver’s
online banking services without authorization to pay her personal
credit card debts.
Malcolm Silver obtained default judgment against Martinez but
nothing was collected.
