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How The Digital Era Has Resulted In An Increase In Identity Thefts

By Finserv MARKETS - Aug 29,2019
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Identity Thefts In The Digital Era

The advent of information and communication technologies have led to the creation of digital identities for human beings. There has been a flurry of digital devices and channels that have not only changed lives for everyday consumers but also transformed the way in which they interact with each other and businesses.

This, in turn, has also altered the way in which fraudsters and criminals operate, effectively tapping vast amounts of information consumers transmit digitally to financial service providers, merchants, and online businesses. It is no coincidence that cyber crime has grown in consonance with the adoption of digital devices and channels. Identity theft is one of the most common outcomes from such data breaches.

Identity theft is when unauthorized access to someone’s personal information that may be used for illicit financial gains, amount to identity fraud. Identity fraud could range from using a stolen payment card account for a fraudulent purchase to opening fraudulent new accounts. India is becoming increasingly vulnerable to this menace because of rapid digitization and the proliferation of mobile data without a matching pace of cyber security and cyber hygiene.

At present, India is ranked third in terms of cyber crime incidents behind the United States and China. The risks associated with cyber crimes multiply when there is a liability on a tech-savvy firm as much as individuals to store the personal information of its users or clients on its servers, often labelled as cyber liability.

Despite the efforts of law enforcement agencies to disrupt cyber crime, it would be wiser for individuals and businesses to insulate from the associated risks by purchasing to a cyber-liability insurance cover.

What is Cyber Liability Insurance?

Like many businesses, your firm may use, store, send or receive online data. This data could include profit and loss projections, tax records, personal and financial information of your employees, customers and vendors. If this online data is lost, stolen or compromised, the cost of recovering it could be significant. Moreover, your firm may be liable for damages to third parties whose data has been stolen.

Cyber Liability Insurance covers such financial losses that occur from data breaches and other cyber events. Policies like Bajaj Allianz Individual Cyber Safe policy, available on Finserv MARKETS, include both first-party and third-party coverages against financial loss, defence and prosecution costs, IT theft loss, transportation, and documentation costs, restoration cost, identity theft due to malware attack, specifically designed for individuals. Beyond identity theft, the policy can protect you against cyber stalking, social media liability, phishing, email spoofing, media liability claims, cyber extortion, and privacy and data breach by a third party.

Cyber insurance plans provide these multiple coverage options under reasonable premium charges. For instance, the Bajaj Allianz Individual Cyber Safe policy, available on Finserv MARKETS, charges an affordable premium of Rs. 781 for a sum insured of Rs. 1 Lakh, without any excess in it.

Exclusive Benefits and Key Exclusions

Loss of personal, financial or business information could be very traumatic, and might even require clinical attention and counselling. Cyber insurance policies like the Bajaj Allianz Individual Cyber Safe Policy, available on Finserv MARKETS, allows you to avail exclusive benefits like counselling services and IT Consultant Services Cover. Counselling services coverage includes payment of all reasonable fees, costs, and expenses of a psychiatrist, psychologist, and counsellor for your anxiety treatment or counselling. The policy also allows you to claim costs incurred by you in order to prove the amount and extent of a covered loss.

While a cyber-insurance liability plan protects you with a host of coverage options, it certainly does make a few reasonable exclusions. It does not entertain any coverage of a loss arising out of any dishonest conduct in giving out information to fill the proposal form at the time of buying the policy, unsolicited information in the proposal form, bodily injury, property damage, unauthorized collection of personal or client data, and immoral/obscene services. It also excludes coverage of losses connected with cyber terrorism, trading in virtual currencies, religious or political activities and natural perils.

Thus, with changing times in the digital world, it is important to stay alert and safe and ensure that you protect yourself with a cyber-insurance policy which shall not only provide financial help against unexpected losses but also assures you of mental peace during unfortunate eventualities.

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. We understand that every individual is different and thus when you plan to achieve your life goals or shop for the gadget of your dreams, we believe in helping you Make it Happen in a few simple clicks. Simple and fast loan application processes, seamless, hassle-free claim-settlements, no cost EMIs, 4 hours product delivery and numerous other benefits. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522