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Fruit Co. Can’t Get Coverage For $1.4M Email Scam Loss

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Law360 (May 13, 2021, 9:38 PM EDT) — A Pennsylvania federal judge freed Selective Insurance Co. on Thursday from having to cover a fruit distributor’s over $1.4 million loss from fraudulent wire transfers, saying the policy only covers fraud on checks and banknotes but not emails or wire authorization forms.

U.S. District Judge Mark A. Kearney said that fruit and vegetable distributor Ryeco LLC cannot recover money it lost after a hacker gained access to its vice president’s email and directed wire transfers to a sham bank account.

The distributor did not have the right kind of policy to cover the attack, Judge Kearney said, noting that Ryeco’s insurance…

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