Business Email Compromise (BEC) , Fraud Management & Cybercrime , Social Engineering
Company Sues Its Insurer for Failure to Pay for Damages Doug Olenick (DougOlenick) • August 11, 2020High-speed trading firm Virtu Financial says it lost $6.9 million in a business email compromise scam in May. The company is now suing its insurer for failure to cover the loss, according to legal documents filed in the case.
See Also: Threats at a Glance: An Immune System for Email
In its court filing, Virtu Financial reports that an executive's email account was illegally accessed and used to send fraudulent emails to the company's accounting department, resulting in two wire transfers to a bank in China.
The company is suing its insurance carrier, Axis Insurance, for not covering the loss, claiming breach of contract.
Financial Loss
Virtu Financial says that on May 13, a hacker accessed the email account of one of its executives and then read emails for two weeks. Eventually, the hacker began altering the account's settings and sending fraudulent emails, according to the court documents.
Those involved in the business email compromise scheme created inbox rules to hide certain messages from being seen by the account owner, and then sent a seri ..
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