"So this is very topical and just highlights the issue with insurance in a fast-moving market. All the cyber insurance companies have their terms and conditions, but because there are so many unknowns that are very specific about what they can insure -- and apparently phishing isn't covered," said Andreas Baumhof, CTO of ThreatMetrix.
This isn't BitPay's fault, Baumhof added, but it highlights that companies need to address the core issue and not just rely on insurance.
"At the same time I believe that these cyber insurances are a bit of a rip-off. Think of car insurance -- if it is insured for theft, it doesn't matter how the theft was executed. In the cyber world, it seems it does matter."
BitPay wouldn't comment on the pending legal action against MBIC. Copies of the court documents are available via Atlanta Business Chronicle and are linked below.
Source: CSO Online
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