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Cyber Security Cover

Cyber security awareness month is celebrated worldwide in October to safeguard digital identities and transactions. As online payments become more popular, people have become more vulnerable to cyber fraud and scams like impersonation, phishing and identity theft.

Awareness is one of the ways to protect yourself from cyber fraud. Here's a look at some common fraud techniques and how you can safeguard yourself against them.

Cyber insurance is a contract that enables an entity to reduce the chances of financial risk while doing a business. As online payments become more popular, people have become more vulnerable to cyber fraud and scams like impersonation, phishing and identity theft. To mark the increasing cases of cyber crimes in the country and the need for cyber insurance, October is observed as the annual cyber security awareness month.

You can prevent yourself from falling prey to such cyber frauds by being well aware of the techniques used to trick people into such crimes. Apart from this, getting secured against such crimes is also advisable. Cyber insurance coverage generally includes security against breach of sensitive customer data, credit cards or account numbers, social security numbers or other personal information. Let us discuss the other aspects of cyber insurance as discussed further below.

Types of Cyber Crimes in India

Risk of contactless payments

With the introduction of contactless payment through WiFi-enabled debit/credit cards, customers can make transactions of up to Rs. 2,000 without entering a PIN or swiping the card. If your contactless payment card is stolen or lost, there are chances of unauthorised transactions taking place.

Immediately report and block lost or stolen contactless payment cards and report any cyber fraud activity to the authorities.

SIM swapping and cloning

Fraudsters try to access your SIM card or duplicate it because all your accounts are linked to your registered number. They often call you pretending to be from your mobile operator and try to convince you to opt for SIM upgrades or benefits. It has become one of the most common types of cybercrimes nowadays.

Never share SIM card credentials or your port out code received from TRAI with callers you do not trust. If you face constant network issues or have a problem receiving OTPs, ensure that your SIM is not duplicated.

Malware and spyware

If your internet connection is not secure, hackers and other cybercriminals can target your device with malicious bugs and malware. These can be used to access your personal and sensitive information and steal data.

To safeguard yourself from such a cybercrime, install recommended software to protect your internet connection and enable regular updates for real-time threat detection.

ATM skimming

This type of online fraud involves skimming devices, keypad trackers, or pinhole cameras in ATMs to obtain card data.

To protect yourself from it, carefully examine the ATM before using it. Check if the keyboard seems bigger than usual, if the slot where you insert your card looks different or bulky, or if any suspicious device is attached to the ATM unit. Always cover the keypad with your hand while entering your PIN and ensure that no one is present nearby.

Loan KYC frauds

Do not click on any suspicious links that you receive via SMS asking you to update your loan-related KYC details. Doing so may result in identity theft or loss of sensitive data.

Official representatives of financial institutions such as banks and NBFCs will never ask for personal information via email, SMS, WhatsApp or phone call.

AePS frauds

The introduction of AePS (Aadhaar Enabled Payment System) has led to frauds where biometric data is misused for theft. Fraudsters access the victim's Aadhaar card and clone the linked fingerprint. They use this information to transfer money to fraudulent accounts via biometric machines in banks.

Never share your Aadhaar details with anyone and alert the authorities of any suspicious AePS transaction.

UPI-related scams

A common UPI Fraud on UPI apps involves fraudsters sending you a 'Request for Money' message. Upon approving this with your UPI PIN, you may end up losing money.

Fraudsters can also convince you to install apps that allow remote access to your devices through trickery and malicious activities. This way, they can note down your UPI PIN and use it for fraudulent transactions later.

Never share your UPI PIN or other details with anyone, and always double-check before making a payment or answering a request on your UPI apps.

Importance of Cyber Insurance

The increasing usage of online transactions and the availability of personal data on various digital mediums has increased the rate of cyber crimes in the country. With an ideal cyber security insurance cover, you can prevent yourself from bearing any financial loss that may occur due to cyber fraud. Given below are the significant features of the Bajaj Finserv Cyber Security Cover for your reference:

• The plan covers money loss due to unauthorised transactions from your registered bank account to a third-party account.

• Provides security against cyber crimes such as tele-phishing and other payment-related frauds.

• You can avail of the benefits of cyber insurance cover at a minimal premium starting at Rs. 299 and get coverage of up to Rs. 2 lakh.

What does Cyber Insurance Do?

Cyber fraud can lead to a devastating impact on a business or an individual. Such crimes may result in unexpected financial loss or personal/customer data loss. Therefore, a cyber insurance cover is custom-made to ensure that anyone who falls prey to a cyber fraud faces minimum loss. Given below are a few benefits of cyber insurance:

• It provides coverage against data breaches.

• Post a cyber attack, a company may have to face losses in terms of both time and money. A cyber insurance cover can help you operate your business with financial assistance.

• You can get assistance with recouping losses that are related to cyber extortion.

• A proper investigation needs to be carried out in case of a cyber-attack. With an ideal cyber security cover, you can get financial aid to seek forensic and specialised help.

• Financial assistance with legal support may be required after falling prey to cyber fraud.

FAQs on Cyber Insurance

What is meant by cyber insurance?

Cyber insurance is a cover that a business can buy to reduce the financial risk of running a business online. Ideal cyber security insurance may protect you against unauthorised transactions or other payment-related frauds.

Why do I need cyber insurance?

A cyber insurance is important as it prevents you from bearing any financial loss that may occur due to incidents like ransomware extortion, breach or theft of data, hacking of a system or other online transaction-related frauds.

What are the benefits of cyber insurance?

Following are the key benefits of cyber insurance cover:

• In the event of an attempt to breach the data, a cyber security cover safeguards your data from cybercriminals.
• You can get reimbursement against the financial loss that may occur due to IT failure.
• Cyber insurance enables you to claim the money lost as a part of cyber extortion.
• It covers the cost of forensic and other investigation expenses.
• You can also get coverage against the cost of legal assistance.

What are the types of cyber insurance?

There are three main types of cyber insurance. It includes:

1. Cyber security – This insurance cover provides security against first-party damages to you and your business. It does not provide coverage for damage done to third parties.
2. Cyber liability – This cyber insurance covers the insured's liability of damages that may arise due to data breach.
3. Technological errors – An insurance plan offers liability coverage to protect businesses that provide technology services.

Do you really need cyber insurance?

Cyber attacks have become common with the increased use of technology and digitalisation. A cyber security insurance plan can prevent personal information and customer/employee data from getting misused.

How much is cyber insurance coverage?

You can get Bajaj Finserv Cyber Security Cover starting at a minimal annual premium of Rs. 299 against coverage of up to Rs. 2 lakh.

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