In Medidata Solutions, Inc. v. Federal Insurance
Company, 268 F. Supp. 3d 471 (S. D. N. Y. 2017), aff'd,
729 Fed. Appx. 117 (2nd Circuit 2018), the Court found that there
was insurance coverage where a company had been victimized by an
email spoofing scheme that resulted in the company wiring funds to
a fraudster's account. More recent cases have also found
insurance coverage for losses arising from similar incidents of
this kind. See, e.g., Ernst & Haas v. Hiscox, Inc., 23
F. 4th 1125 (9th Cir. 2022)
In Medidata, the spoofed email came in the form of an
email purportedly coming from the company's president which
instructed that payment be made to a certain outside account.
Believing the email to be genuine, a subordinate in the company
wired the funds to the fraudster's account.
