9th Circuit: Seafood Firm Not Insured For Losses From Spoofed Emails

Mealey's (April 19, 2018, 3:23 PM EDT) -- SAN FRANCISCO — Even though an employee was tricked into transferring funds to a criminal because of fraudulent, spoofed emails, a Ninth Circuit U.S. Court of Appeals panel on April 17 found that the direct cause of a seafood company’s loss was the authorized employee’s action, thus precluding coverage for the loss under the computer fraud provision of a commercial crime insurance policy (Aqua Star [USA] Corp. v. Travelers Casualty and Surety Company of America, No. 16-35614, 9th Cir., 2018 U.S. App. LEXIS 9660)....