Go Phish: Circuit Split in Policy Interpretation for Social Engineering Fraud Losses Creates Ambiguity for Insurers and Insureds

This Comment examines the circuit split over whether social engineering fraud losses are covered under computer fraud insurance provisions. It argues that recent decisions expanding coverage improperly blur the distinction between computer hacking and employee manipulation. The Comment contends that social engineering fraud presents a distinct risk that should be addressed through separate insurance coverage and concludes that a stricter interpretation of computer fraud provisions would promote greater clarity and uniformity for insurers and insureds.[This abstract was written by Microsoft Copilot, a generative artificial intelligence.]