साइबर इंश्योरेंस

Our online presence is only increasing day by day. Be it shopping for clothes online or buying groceries at a store, with every transaction; we leave behind a digital footprint that online criminals are always looking to exploit. With increased internet usage, the number of cybercrimes has also increased globally. As per National Crime Records Bureau of India report, India saw an 84% increase in cybercrimes within a span of two years – from 2018 to 2020. Individuals and large corporations bear the impact of cybercrime. This article explains the many ill effects of cybercrimes on society.

Cybercrime – An overview

Cybercrime may be defined as any crime facilitated by the internet. Hackers, also known as cybercriminals, typically attack online systems using computers and private networks. Some of the most commonly known cybercrimes include identity theft, ransomware, cyber extortion, phishing, data breach, online shopping scams, etc. The ill effects of cybercrimes often lead to extreme financial ruin and reputation loss to both businesses and individuals. Moreover, the repercussions of cybercrimes can affect society in numerous ways.

Effects of Cybercrime on Society

Cybercrime can take numerous forms, be it online scams for petty thefts or serious threats like terrorism. Whatever it is, its impact can be incredibly harmful to society. Let us understand the effect or impact of cybercrime on society with examples.

  • Effects of cybercrime on businesses

    Assume an e–commerce business collects customers’ card details when the customer makes an online payment. This giant corporation has millions of customers. Now say, at least 70% of their customers make payments using debit cards, credit cards, UPIs, digital wallets, etc. This means that the business has built a massive online customer database. If the company does not take adequate measures to secure and encrypt its customers’ sensitive financial information, hackers can take advantage of the tiniest of vulnerabilities and hack into internal systems. They can access customers’ card information and track it back to their bank accounts and steal money. This can cause financial loss to many people, leading to a massive uproar in society.

  • Effects of cybercrime on infrastructure

    Cyberterrorism also poses a significant threat to society. Cyberterrorists can break into systems that control infrastructures like air traffic control and endanger millions of lives. The more technologically developed a nation, the higher the cyberterrorism risk it possesses.

    Cybercriminals can also target healthcare websites. They can expose patients’ and hospital staff’s sensitive data. These cybercrimes can range from malware and denial–of–service. Cyberattacks on the healthcare industry can have ramifications that surpass financial losses, i.e. they can pose risks to patients’ lives.

  • Effects of cybercrime on individuals

    Cyberbullying involves blackmailing internet users by threatening to leak false information. Like attacks on healthcare, the consequences of cybercrime are not limited to financial loss. Victims can suffer from conditions like anxiety and depression, leading to suicidal tendencies.

Thanks to digitalization, our phones are not the only assets that have become smart. Artificial intelligence (AI) and the internet of things (IoT) have enabled smart homes, where you can turn on any device with a voice command. Your new–age smart TV allows you to subscribe to various streaming platforms but leaves your payment details susceptible to hacking in the absence of a legitimate security system.

Importance of Cyber Insurance

Damages caused by cybercrimes often transcend financial losses. Data breaches, ransomware, malware, etc., can bring even the largest corporations down to their knees. The impact of cybercrimes on society in general and businesses in particular can be tremendously taxing. However, cybercrime victims can recover their financial losses with cyber insurance.

Cyber insurance covers several cybercrimes, including phishing, ransomware, identity theft social media bullying, online scams, etc. The insurer covers the legal costs, costs associated with repairing devices affected by malware, relocation costs, etc., up to a specific sum insured per the policy terms. Whether you run a business or own a personal computer, you must secure your online presence with cyber insurance.

Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.

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