No Insurance Coverage for RealPage in $5 Million Phishing Loss

National Union Fire Insurance Co. was right to not reimburse RealPage Inc. for nearly $5 million stolen in a phishing scheme, the Fifth Circuit said Wednesday, affirming that the loss isn’t covered because the technology company never “held” the funds.

In 2018, a RealPage employee clicked a fake link in a seemingly innocuous email and provided login information for RealPage’s account with Stripe Inc., a third-party payment processor.

Crooks stole the login credentials and diverted millions of dollars in rent payments intended for RealPage’s property management clients. RealPage and Stripe recovered some of the stolen funds, but about $6 million ...