How to Secure Your Online Presence with Cyber Insurance?

October 14, 2021 Mutual Fund

With the constant evolution in technology and the lockdown restrictions led down by the government, more and more businesses and individuals are being a part of the digital world.

Many businesses, including big corporates, are facing cyber threats like data breaches, identity theft, etc., which results in damaging the reputation of the firm and risking the data of customers and employees.

Furthermore, individuals have been spending most of their free time online and are mostly relying on the internet to access services that would have otherwise be accessed offline. Taking advantage of this, hackers and cyber-criminals are now targeting individuals who are relatively new to the digital world.

As a matter of fact, with the higher use of digital platforms there is an increase rate in cybercrime. In the year 2020, we had seen a steep rise of 11.8% in cyber-crime , whereas the rate of normal crimes decreased simultaneously, due to the COVID-19 pandemic. Therefore, to ensure optimum financial protection against any cyber attack, it is essential to cover yourself and your business with Cyber Insurance.

What is Cyber Insurance for individuals?

Cyber Insurance provides cover to mitigate losses from cyber incidents and theft of sensitive data. Traditional Cyber Insurance provides coverage to only businesses and key personnel of the corporates from internet-based risks, such as risk related to information technology infrastructure, data privacy, information governance liability, etc. In simple words, it covers the business losses due to data destruction, theft, hacking, extortion, etc.

Corporates are well aware about the internet theft and hence cover themselves against it by opting for Cyber Insurance. However, the personal and financial data of the individuals are also equally important for them.

With increased penetration of the internet in our life, the risk of financial loss has increased as cyber-criminals are now targeting individuals. For example, if an individual’s internet banking details or credit card details are hacked, the victim may have to face a huge financial loss. Sometimes, stealing digital identity proof, address proof, etc. can lead to criminals misusing the details and even borrowing in the name of the victim. A victim will not even realise until he checks his credit score or the lender comes to the door to recover the loan.

Apart from the financial loss, identity theft can also damage one’s reputation, especially women face more such cases where their pictures are stolen from their social media account and manipulated for ransom.

Recently, there has been an increase in coronavirus-themed frauds. The emails and messages deliberately use sensitive terms, such as COVID-19 cases, COVID-19 precautions, Coronavirus online test, etc. to grab the attention of the users and direct them to click on a particular link. Once you click on the link, the malware gets installed on your device and can steal your sensitive information.

Therefore, many insurance companies have launched cyber insurance specifically for individuals, which provides coverage against financial and personal information theft.

What is covered under Cyber Insurance for individuals?

Cyber insurance cover for individuals may differ from insurer to insurer, but the general coverage provided includes:

• Identity Theft:

  Identity theft is stealing someone's personal or financial information to use their identity to commit fraud.

• Social Media Crimes:

  Stealing or manipulating someone's social media pictures, harassing someone on social media, demanding a ransom, hacking someone's social media account, etc. is covered against social media crimes.

• Cyber-Stalking:

  Cyber-Stalking means repeatedly chasing, harassing or frightening someone through electronic communication, such as emails, social media, WhatsApp, etc.

• Phishing:

  Phishing is a type of social engineering in which a target is contacted by email, call or message purporting to be from a reputed company to trick the target into reviling sensitive information, such as credit card number, One-Time-Password (OTP), CVV (a three-digit number mentioned on the back of the credit/debit card, etc.).

• Cyber Extortion:

  Cyber extortion is an act of cyber-criminals demanding ransom for stopping the cyber-attack or returning you access to your system. This is done by the hackers when they get access to your sensitive data.

• Email Spoofing:

  Email spoofing is a form of cyber attack where cyber-criminals trick users into thinking that the email has originated from a trusted source. In email spoofing the cyber-criminals mainly focus on forging the sender address.

• IT Theft Loss:

  These tactics are used to steal someone's financial information and sensitive data, such as credit card details, internet banking passwords, etc. in order to do financial fraud.

• Malware Attack:

  Malware is a short form of malicious software, which the hackers install on the victim's device without the victim noticing it. Such malicious software can track your activity, steal the sensitive data you store or type on your device, delete the files, and even destroy your device completely.

• Media Liability Claims:

  Media liability claims cover acts such as defamation, plagiarism, invasion of privacy, copyright infringement, etc.

• Privacy Breach:

  A privacy breach occurs when someone accesses your personal and financial information without your permission.

How much is the premium for Cyber Insurance for individuals?

Different insurance companies charge different premiums for Cyber Insurance as the offerings vary from insurer to insurer. However, it is generally less than 1% of the insurance coverage you opt for. Instead of focusing only on the premium amount, it is advisable to check and compare the offerings of the plan as well. Cyber Insurance is a special type of insurance that has upper limits for all the types of cover it provides. For example, email spoofing may have a limit of a maximum of 20% cover of the sum insured, whereas social media crimes may have up to 10% cover.

What is not covered under Cyber Insurance for individuals?

• If you have purchased cyber insurance for yourself as an individual, only you will be eligible for the insurance coverage. You cannot claim insurance on behalf of your family or business under your individual plan.

• If after the verification it was found that you have intentionally done the cyber attack, the insurance company will not be liable to pay for any damage that has occurred.

• If the cyber-attack was done before purchasing the policy, the claim will not be settled by the insurance company.

• If it was found that the policyholder has shown negligence or has not taken proper precautions, the insurance company can reject the claim. So to avoid this, follow the guidelines given by the insurance company for your digital protection.

Here are, some of the things you must do in order to stay safe from cyber-attacks:

– Install a trusted antivirus and renew it timely.

– Avoid online payments or logging into any accounts with passwords using public Wi-Fi or public computers. If you have to use public Wi-Fi or computers, use Virtual Private Network (VPN) for secured transactions.

– Always keep strong passwords. Use combinations of alphabets and numbers, lower case and upper-case alphabets, special characters, etc.

– Do not use your personal details like name, date of birth, etc. to create your passwords.

– To create passwords, try to use phrases instead of words.

– Try to keep different passwords for different accounts.

– Keep changing your passwords after every 3 to 6 months.

– Restrict social media access by using the privacy settings of the social media accounts.

– Do not click on the links that come from an untrusted source.

– Do not provide any personal details or financial details to the websites that do not have a secure connection. To find whether the website has a secure connection, check if the URL starts with https. Remember that ‘S’ in the word https stands for security.

– Do not share your Personal Identification Numbers (PINs), passwords, CVV, etc. with anyone.

– Never leave your devices unlocked when not in use.

– Clear the browsing history every time you use a shared device.

Apart from these precautions, it is advisable to read the list of exclusions and policy exemptions that every insurance company holds, which will help in avoiding any future disputes.

To Conclude:

Internet is supposed to be making your life easier and more fun. However, considering the rise in the number of cyber-attacks and crimes, Cyber Insurance for individuals has now become essential for everyone who is digitally active. As already discussed, before buying a Cyber Insurance policy, make sure you read the terms and conditions, policy exemptions, list of inclusions, list of exclusions, etc. to avoid any unpleasant surprises in the future.

This article first appeared on PersonalFN here