Firm Sues Cyber Insurer Over $480K Loss

Why a simple phone call cannot be made to the individual concerend to confirm the transaction is beyond me.
 
18th January 2016

A Texas manufacturing firm is suing its cyber insurance provider for refusing to cover a $480,000 loss following an email scam that impersonated the firm’s chief executive.
http://krebsonsecurity.com/wp-content/uploads/2015/03/athook.pngAt issue is a cyber insurance policy issued to Houston-based Ameriforge Group Inc. (doing business as “AFGlobal Corp.“) by Federal Insurance Co., a division of insurance giant Chubb Group. AFGlobal maintains that the policy it held provided coverage for both computer fraud and funds transfer fraud, but that the insurer nevertheless denied a claim filed in May 2014 after scammers impersonating AFGlobal’s CEO convinced the company’s accountant to wire $480,000 to a bank in China.
 
According to documents filed with the U.S. District Court in Harris County, Texas, the policy covered up to $3 million, with a $100,000 deductible. The documents indicate that from May 21, 2014 to May 27, 2014, AFGlobal’s director of accounting received a series of emails from someone claiming to be Gean Stalcup, the CEO of AFGlobal.
 
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