Fraud Coverage not Applicable to Transformation of Information

Q

A client's employee was tricked into disclosing their bank account information.  The scheme was elaborate:  First there was a phone call from a “bank employee” to alert the firm that they'd be receiving a fax request for some confidential information.  Then the fax arrived, on what appeared to be bank letterhead, requesting information about the firm's account.  The “bank's” fax number turned out to be bogus, however, and the next thing they knew, $120,000 had been taken from the firm's account.  The bank won't accept responsibility for the loss because the withdrawal was made with an authentic account number and password.