National Bank believed it had been properly authorized to transfer $250,000 to the off-shore account of one of its corporate customers.The authorization was fraudulent,however,and the transferred funds were stolen.Under which commercial crime coverage insuring agreement would such a loss be covered?

Question

Quizplus · Accepted Answer

The loss of $250,000 due to fraudulent authorization for transfer to an off-shore account would be covered under the insuring agreement for Computer and Funds Transfer Fraud. This coverage provides protection against losses resulting from fraudulent computer-based instructions to transfer, pay or deliver money or securities from an insured’s account.

National Bank Believed It Had Been Properly Authorized to Transfer