What is Cybersecurity Insurance and Why is it Important?

Cyber security is an important aspect of running a business. Since every company stores its data online, the data become prone to cyber-attacks. This is why it becomes important for the employers to protect their data with anti-malware as well as a cyber insurance policy in case the hackers breach into the online servers of the company and steal the data for financial gains.

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Cyber Security Insurance

A cyber security insurance policy works as a shield for the organization that has the company’s as well as their customer’s confidential data stored in their online servers. Customer data such as their names, email IDs, contact numbers, medical records, ATM card details, ATM Pin, etc. Having cyber security insurance can help an organization minimize unforeseen financial risks. Hence, it is advised by insurance experts to protect the company’s data with a cyber insurance policy.

Importance of Cyber Insurance Policy

Here are some of the benefits of Cyber insurance that you should know if you still haven’t purchased the cyber policy.

  • Data Breach Cover: On the occasion of a breach, agencies have required the aid using regulations to inform affected parties. This can lead to standard information breach costs, in particular as they relate to safety fixes, identification robbery safety for the ones impacted with the aid of using the breach, and safety from viable felony Cyber legal responsibility regulations consist of insurance for those exposures, hence safeguarding your information from cybercriminals.
  • Extortion Defence: Ransomware and comparable malicious software program are designed to scouse borrow and withhold key facts from groups till a steep price is paid. As those forms of assaults boom in frequency and severity, it’s crucial that companies search for cyber legal responsibility insurance, which could assist recoup losses associated with cyber extortion.
  • Legal Support: In case of a cyber-attacks, organizations seek for legal assistance. As we all are aware that taking legal assistance can be an expensive affair and that is why cyber insurance comes in handy. The insurance policy provides financial coverage so that you can afford the best legal advisor there is.
  • Loss reimbursement due to Business Interruption: A cyber assault can cause an IT failure that disrupts enterprise operations, costing your organisation time and money. Cyber legal responsibility rules can also additionally cowl your lack of earnings at some stage in those What’s more, extended fees for your enterprise operations withinside the aftermath of a cyber assault will also be covered.
  • Coverage for General Legal Liability: General liability doesn’t usually defend companies from losses associated with records Records are commonly really well worth ways greater than bodily assets, and it’s vital to have the proper safety in the region while you want it most. Supplementing your coverage with cyber insurance can offer you peace of thought that, withinside the occasion of an attack, your organization’s monetary and reputational wellbeing is protected.

Here is an example, Sony’s Playstation network was hacked in 2011. The cyberattack exposed personally identifiable information of over 77 million Playstation user accounts. The cyber breach prevented the users from accessing the Playstation server and it lasted for almost 23 days. Sony had to incur around 171 Million Dollars in costs due to the breach.

Since Sony did not have a cyber insurance policy at that time, the company had to pay the amount itself. Later, a court case ruled out that Sony’s insurance policy only provided coverage for physical damage to the property.

Who Requires Cyber Security Insurance?

All companies can gain from cyber insurance coverage. For example, companies that promote online technique which includes retaining and storing statistics along with identifiable facts, credit score card numbers on account that a breach may want to suggest misplaced sales, livid customers, and different terrible effects down the road.

Beyond e-trade companies, in case your enterprise shops and manages any sort of statistics online, cyber legal responsibility coverage gives a further layer of safety on the occasion of a statistics breach. Consider private worker facts or critical client details, simply to call a few: this fact is just too critical to a commercial enterprise to now no longer have cyber legal responsibility coverage.

Conclusion

Securing your company’s data with cyber insurance is a must because cyberattacks are skyrocketing and being the owner of a company, it is your responsibility to protect the company from any unforeseen financial burden that would eventually lead to a major loss for the employer, employees or the customers of the company.

Written By: PolicyBazaar - Updated: 29 April 2022

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Cyber fraudsters are targeting customers under the disguise of not a bank official but an insurance company official. In one such event, a 67 year old citizen from Thottakattukara, Kochi, lost Rs 1 lakh.
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He was approached by a woman name Radhika Jain who claimed to be from an insurance company. She promised the victim to make the financial settlement for the raised claim if he pays Rs 1 lakh to renew the policy. When the victim filed the complaint, Rural Cyber Police, Ernakulam, launched the investigation. The incident took place on October 29 and the fraudster claimed to be an ICICI Prudential Insurance official. The fraudster fooled the elderly person by telling them that his insurance policy has expired and the settlement cannot be made disbursement of the insurance amount. As per the Police officer, “The fraudster suggested the victim to pay Rs 1 Lakh to renew the insurance policy. If the policyholder pays the amount then he will be considered as Senior citizen and the disbursement will be done. In order to make it look genuine, the caller sent ICICI Prudential life insurance letterhead through Whatsapp.” “The fraudster promised the complainant that within 45 days the settlement of Rs 2.45 lakh will be done. The victim transferred the amount to the fraudster’s Canara bank account and once the payment was made the fraudster sent some fake documents. However, the promised settlement of Rs 2.45 lakh was not made even after 45 days.” A police officer said. After cross checking the details of transaction, the police found out that the accused was from Aligarh. Police is also probing as to how the accused got the information related to the insurance policy of the victim.
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Out of 5 million people globally, 6 lakhs Indians have had their sensitive data stolen and sold on the bot market making India, the worst affected country.
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The average cost of the digital identity of one person was Rs.490, revealed NordVPN, the world's largest VPN service provider. The stolen data include user logins, screenshots, digital fingerprints, cookies, and other sensitive information. All these data are sold in packets in the bot markets, which refer to places where hackers sell stolen data from victims' devices with bot malware. The study majorly looked into three-bot markets the Genesis market, 2Easy and the Russian Market. Out of 26.6 million stolen logins found on the bot markets, 7,20,000 were Google logins, 6,47,000 were Facebook and 6,54,000 were Microsoft logins. Moreover, 667 million cookies, 5,38,000 auto-fill forms, 81,000 digital fingerprints, multiple device screenshots, and webcam snapshots were also found by the researchers. The bot markets are distinct from other dark markets as bot markets are able to get huge amounts of information related to one person in one place. The hackers also guarantee that once the bot is sold, the data of the victim will be updated till their device is affected by that bot, stated Marijus Briedis, chief technology officer at NordVPN. Security researchers also said that not all bots come with a good purpose, many can be malicious as well. These bots operate in multiple fields like customer service, SEO and entertainment and are becoming increasingly common recently. Vidar, RedLine, Taurus, AZORult and Racoon are some of the most popular malware used to collect and steal information out of which RedLine is the most common, stated the report.
AIIMS Cyber Breach: Attackers Demand Rs 200 Crore in Crypto

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All India Institute of Medical Sciences, New Delhi, India reported a cyberattack on November 23, 2022. Later, the statement released by AIIMS said that e-hospital system
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has gone down and it has affected the digital hospital services, e-billing, smart lab, appointment system and report generation. AIIMS currently manages around 2,500 beds. It is said that the data of around 2 to 3 Crore patients might have been compromised. After the incident, AIIMS shifted to manual operations to cater the patients. Also, All India Institute of Medical Sciences sought National Informatics Centre (NIC) and I-CERT to restore the digital services. The incident has been reported to Delhi Police whereas CBI and NIA have joined the investigation. AIIMS issued a new Standard operation procedure where the admission, discharge and transfer of patients will be done manually.  As per a source told Press Trust of India, “Hackers have demanded a ransom of Rs 200 Crore in crypto currency on November 28, 2022”. Later, Intelligence Fusion & Strategic Operations unit have registered the case under cyber terrorism and extortion on November 25.  Meanwhile, National Information Centre e-hospital database and application servers restored the data for e-hospital. Also, the team of NIC is cleaning and scanning infections from other e-hospital servers that are located at AIIMS hospital. These servers are required to deliver the service of the hospital. Also, four physical servers have been arranged to restore the e-hospital services and have been scanned and prepared for the applications and database. As per the source, “Sanitisation of AIIMS network is in progress. Antivirus has been installed on 1200 out of 5000 computers and 20 out of 50 servers have been scanned. This activity is going on 24*7”.
Cyber Criminals Sending Phishing Links to Twitter Users

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Cyber criminals are targeting twitter Verified Twitter user by sending them phishing links. The cyber criminals send the phishing link to steal their phone number
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