AIG says its cyber insurance plans don't cover criminal acts; wants lawsuit tossed
Insurance giant AIG argued to a New York federal court on Monday that it is not responsible to cover nearly $6 million in losses incurred by a client that was victimized by suspected Chinese hackers.
The company asked a court in the Southern District of New York to dismiss a lawsuit filed in August by SS&C Technologies, a $6 billion financial technology company, which alleged that AIG violated its contract by failing to cover losses from fraud. Hackers fleeced SS&C out of $5.9 million in 2016 by emailing company employees from spoofed email addresses, and requesting monetary transfers. AIG says its policy stipulates that the insurer will not cover losses stemming from criminal activity.
“SS&C admits that it has filed suit seeking indemnity coverage for its settlement of a breach of contract claim concerning criminals using ‘spoof emails’ to trick SS&C into improperly using its authority over its client’s bank account to send $5.9 million of its client’s funds to bank accounts controlled by criminals in Hong Kong,” AIG said in court documents filed Monday.
