Cyber Insurance: How does cyber insurance cover the loss in case of fraud, know here...


During increasing cases of cyber fraud, it is now necessary that you have 'cyber insurance'. It is a type of contract in which an online business company or individual buys an insurance policy to avoid financial risk. Damage caused by cybercrime is covered in return for a fixed fee. But cyber insurance also has a limit, so it is important to be very careful in digital transactions.

Need to understand the policy
It is very important to have a good understanding of the policy while taking cyber insurance. You should be aware of what protection the policy will cover and how to use it if need be. Different types of cyber threats are provided in the insurance policy. If you do more online transactions then it is better to take a policy with a higher limit.


How does the attack happen?
While buying an insurance policy, keep in mind how many threats of cybercrime are being covered. Chief among these are:-

Phishing or spoofing
In this, the cyber thug steals your sensitive information, such as bank account details and identity, etc.

It is a type of virus, which steals personal information from digital devices, such as computers, mobiles, tablets, etc.

Sim swap
In this, with the help of technology, a duplicate sim is made instead of the original sim. Through this, money is transferred online from the bank account.

Credential stuffing
In this, swindlers collect your personal information, which usually includes username, email ID, or a list of account passwords.

What to cover in the policy
-If you are choosing between cyber insurance policies, then keep certain things in mind, such as-

-Financial loss due to spoofing and phishing theft of important information related to a bank account or debit-credit card.

-Fraud in online transactions through e-wallets.

-Information on the loss and expense associated with the aftermath of identity theft.

-The cost of reinstalling them after damage to data or computer programs caused by viruses, etc.


Some caution by yourself
Despite having cyber insurance, you should be careful, as most people do financial transactions not only from their computers and smartphones but also from office computers and public Wi-Fi. Accessing personal information from external devices carries a high risk. We should know how cyber-attacks happen. Under what circumstances damage can occur and how can cyber-attacks be avoided.