Computer & Electronic Crime Rider

The Computer & Electronic Crime Rider provides protection against loss incurred by the bank due to the theft of electronic data and fraudulent funds transfers resulting from hacking or other fraudulent, illegal, or unauthorized entry into the bank's computer systems. Coverage extends to losses resulting from the use of third-party vendors contracted by the bank, such as Internet banking service providers and data processors.

Losses resulting from the customer's negligence or failure to deploy appropriate security measures, such as failure to safeguard passwords, deploy firewalls, etc., are not covered.

Sample Rider

Claims Examples
  • A computer hacker gains access to a bank’s system and fraudulently initiates ACH debits to transfer funds to his personal account.

  • A customer gains access to a bank’s proprietary system via a modem connection and posts unauthorized credits to her account.

  • An individual pretending to be a customer of a bank initiates fraudulent instructions via email and fax to transfer funds from the actual customer’s account to another account.

  • A computer program owned by a bank is altered by a virus that destroys electronic data in the computer system. The bank has to hire a technical specialist to restore the lost electronic data.

Features
  • Computer Hacker Theft coverage is provided for loss of property, such as stolen customer account information, resulting from persons who are not bank employees and are acting alone or in collusion with others. (Also referred to as "Hacker or Cracker Coverage.")

  • Coverage for Fraudulent Entry of the Bank's Electronic Data or Computer Programs is provided for loss resulting directly from the fraudulent transfer of funds initiated through the financial institution’s computer system. The source of this fraud may be: (1) direct manipulation of or access to data contained in the bank’s computer system through the Internet or other remote access; or (2) an employee acting in good faith upon fraudulent instructions transmitted to the bank by email, telefacsimile, voice, or over the Internet from someone purporting to be a customer, bank employee, financial institution or automated clearing house. If the transfer amount is over $25,000, the bank must have generated a reciprocal verification call for coverage to occur. Regardless of the amount of the transfer, a prior written agreement must exist between the institution and the customer authorizing the institution to initiate funds transfers by voice, email or telefacsimile.

  • Destruction of Data or Computer Programs provides coverage for costs to reconstruct data or programs damaged by virus, hacker or employee sabotage.

  • Toll Fraud covers for charges from long-distance toll calls incurred due to fraudulent use of an account code or system password which allows access into the insured bank's voice-prompted computer system.


Notwithstanding any language to the contrary, nothing contained herein constitutes nor is intended to constitute an offer, inducement, promise, or contract of any kind. All coverage descriptions and claims examples are provided for informational and educational purposes only and are not a representation as to coverage for any particular claim and are not represented to be error free. Coverage for any claim is determined upon the specific facts of the claim, the terms and conditions of the policy and applicable law. For details on the coverage provided by your specific contract of insurance, please refer to your policy. Coverage is subject to underwriting guidelines and may not be available in all states. Limits may be capped for underwriting reasons. Any links to any sites which are not originated by ABA Insurance Services Inc. (ABAIS) are provided only as a courtesy and are not intended to nor do they constitute an endorsement by ABAIS of the linked materials.