How to secure yourself from Cyber Fraud

Cyber Insurance: a need of time!!

Today, cyber risk is the most discussed risk. Monetary losses or psychological trauma due to cyber fraud or harassment are the biggest nightmares of any individual in today’s online world. India has the 2^nd largest internet user base in world. Cyber crime incidence is on the rise at a much faster pace than one can imagine. The nature of risk is far more dynamic and possibly explosive in many situations. Pune based Cosmos Cooperative bank was the recent malware exposed bank suffering with 94cr loss. In 2017 Union bank of India was hacked and a $171 million was transferred from the bank’s account without the bank’s authorization. Wannacry ransom ware attack was estimated to have affected more than 230,000 computers in one single day. India was the 3^rd most affected country by Wannacry attack. There have been cases of mobile phone applications of banks being hacked by cyber criminals. The pilferage of personal information and money in digital wallets has cost banks and individuals millions of Rupees.  Therefore, cyber use is not without risk.

Not surprisingly General Insurance companies have come up with ‘cyber policies’ to cover individuals against such risks. The cover provides protection against cyber attacks and threats, helping customers safeguard their reputation, potential data breach and losses in cases of any financial or sensitive information stolen or misused.

Cyber liability Insurance has been around in International markets for more than a decade. However, Indian insurance policies have started for only few years now. Cyber insurance policies have turned into a basic need in our country, where banking is increasingly turning digital. Most banks and e-commerce companies have been buying large covers. While the large lenders have cyber insurance covers, but many have only the ‘Bankers Blanket Bond’.  This bond is a 40 year old insurance policy designed for an era before banking moved online. This policy was designed to cover risks like cash-in-transit, bank robberies, physical frauds and forged documents, but not losses caused by malware.

We like the convenience of online financial transactions, but are not cautious of the risks. We can now buy insurance to protect ourselves from cyber frauds. The awareness about cyber covers among retail individual has been limited. This post is to create awareness among all Internet Users.

In my next post I will be writing about which all policies we have in India and their coverage.