Mortgage banker sues insurer over cyber attack coverage

by Ryan Smith28 Aug 2017
A California mortgage company is suing an insurer, claiming it refused coverage for a claim filed after a hacker stole more than $75,000 by impersonating the mortgage company’s former CEO.

American Pacific Mortgage filed the lawsuit against Aspen Specialty Insurance Company in federal court, claiming the insurer must cover a claim resulting from the cyber attack.

“In August 2015, American Pacific Mortgage was a victim of an elaborate scheme which involved an email hacker posing as the (then) CEO and duping an unsuspecting employee,” American Pacific’s current CEO, Bill Lowman, told . “It is important to point out, at no time were our systems infiltrated or confidential data breached. While the event was significant enough to file an insurance claim, the amount in no way impacted the company’s operations, employees or the consumers we serve.”

Lowman told HousingWire that American Pacific filed the lawsuit because, since the incident occurred two years ago, the end of the statute of limitations is approaching.

“While we are not at liberty to speak about the specifics of the event, we feel it is our responsibility and welcome the opportunity to share our experience with others in the industry and make them aware of both the threat and the potential gaps in their insurance,” he said.

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