Nowadays, financial fraud and cybercrime in the digital money market are rampant in India. According to information provided to the Indian Parliament, losses attributable to cybercrime, which includes ATM/Debit Card, Credit Card, and Internet Banking frauds, have risen to Rs 63.40 crore in FY20-21 from Rs 58.61 crore in FY19-20. Financial cybercrime comprises theft of payment card information, access to financial accounts to conduct unauthorized transactions, extortion, identity fraud to apply for financial products, and so on.
Although cyber insurance is available in third-world nations for over two decades, India still needs to catch up to the worldwide trend. However, in India, assaults are becoming more sophisticated, and the legislative landscape surrounding data and privacy is still growing, necessitating a more comprehensive risk management approach. Subscription to ‘Cyber Insurance’ is more of a buzzword among corporations and MNCs in India. Small retail and individual subscriptions to ‘Cyber Insurance’ remain a pipe dream. Indeed, ‘Cyber Insurance’ will assist in mitigating risk exposure by offsetting expenses following a breach/loss. Its subscription will undoubtedly aid in minimizing damage and accumulating rewards for the claimant.
The Indian insurance sector has goods and is in the process of selling them to potential clients. It is also noted that the Indian Insurance Sellers have accommodated a wide variety of customizing of their product to persuade the clients to subscribe to ‘Cyber Insurance.’
In a first of its kind, ‘Paytm’ has announced that it would provide its users with cyber fraud protection through insurance coverage covering fraudulent mobile transactions up to Rs 10,000 for a cost of Rs 30. The solution, branded ‘Paytm Payment Protect,’ was introduced in partnership with ‘HDFC Ergo’ and is supplied through a group insurance policy.
Users can look for the “Payment Protect” option on the Paytm app to use this option. After entering their name and cell phone number, they can hit the “Proceed to Pay” option. To get a thorough explanation of the rules, terms, conditions, and other information, they can also go to the HDFC ERGO website.
Monetization of Data
Cyberattacks are becoming more prevalent and blatant, showing that companies that previously thought they were resistant to sophisticated groups that were the only ones that committed advanced attacks are no longer safe. The development of a lucrative market for stolen credentials, which promotes a division of labor among cybercriminals, is the cause.
Dark web markets enable low-skill attackers to profit from obtaining stolen company credentials—typically obtained through widely disseminated phishing scams—without actually launching an assault. These amateurs sell credentials in bulk to experts who can silently dodge traditional security measures, get into a company’s network using a multi-stage APT (advanced persistent threat), and exfiltrate (data theft) and/or encrypt (ransomware) important data over a long period of time.
There exists a dire need for government, corporate and civil society organizations to work in tandem to spread cyber awareness among the masses. The think tanks and civil society organizations should take more initiatives at the grassroots level to apply the essence of cyber resilience among each stratum of society.
Author: Mr. Shrey Madaan, Junior Consultant, CyberPeace Foundation