Phishing Cover Under Cyber Insurance

Cyber Insurance and Phishing Cover

We live in a world that is profoundly intertwined with countless digital platforms in the form of mobile banking, e-commerce and social networks. Take a moment to think how often you feed your debit card information into a mobile app or shopping website!

Online submission of these details makes you prone to cybercrime. In order to address online risks, the insurance market has introduced cyber insurance plans.

Incidence of cyber threats

The amount of personal data that we deliberately share online is enormous. Owing to the complexity of the system that stores and transmits these data, a gamut of cyber risks like cyber extortion, phishing, cyberstalking have surfaced. The vulnerability of many websites’ security configurations has further aggravated the risk.

Phishing, a cybercrime

You might have come across impertinent emails reading “Update Your Records or Click on the link to claim your reward”. Most of these are phishing emails. Phishing involves sending fictitious emails, text messages, letters or making phone calls to steal confidential personal or business information.

Phishing emails target data about corporate bank accounts, debit/credit cards, usernames, identity documents like PAN and Aadhar etc. They come with instructions to click a link or attachment that can lead to the unauthorized transfer of money or other vital information.

Insurance cover for phishing

Phishing cover is one of the many insuring clauses included under a cyber-insurance policy. If an insured becomes a victim of an act of phishing whereby he/she sustains a pure financial loss, then the same would be compensated by the cyber insurance provider.

Apart from the coverage for online loss of funds from bank accounts and payment wallets, it also covers the cost of filing a prosecution against a third party and the consulting fee of taking legal advice. Furthermore, some of the miscellaneous expenses arising out of the legal procedure, like transportation, documentation are also covered.

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