The West Virginia Supreme Court of Appeals held that a law firm did not breach the standard of care in a real estate settlement where the funds were transferred were stolen by a phishing scheme
When Respondent provided the wiring instructions to Frum, Respondent took steps to encrypt its email containing that information. The contents of that email were highly sensitive and Respondent reasonably expected the information to remain confidential by use of encryption technology. Indeed, Petitioners concede that Respondent was not responsible for the hack because they pled in their amended complaint that “the money was diverted when the hacker was able to intervene in email correspondences between” Frum and Coldwell. Petitioners, however, contend that in addition to the encryption precautions it undertook, Respondent had a duty to warn Petitioners of phishing schemes that could target Petitioners.