Emerging Cybersecurity Threats in India

As we move further into the digital age, the risk of cyberattacks and data breaches is increasing exponentially. In India, where digital start-ups are now taking the world by storm, they are increasingly at risk of being targeted by hackers. In 2021, 77% of businesses in India were disrupted due to cybersecurity risk or were attacked by cyber-attacks*. Cybercriminals are using advanced methods every day, and it is more important than ever to take steps to protect your business from these threats. Here, we will discuss some of the most common and emerging cybersecurity risks in India and how you, as a startup or SMB founder, deal with them effectively.

Types of cybersecurity risks in India

There are a number of different types of cybersecurity risks that businesses in India need to be aware of. Some of the most common include:

Ransomware: This is a type of malware that encrypts files on your computer and demands a ransom payment in order to decrypt them. It has become increasingly popular in recent years and can be very costly to businesses that are affected. As per Allianz Risk Barometer, cyber incidents rank in the top three perils in most countries and this surge is largely led by Ransomware attacks. (57%).

Phishing: This is a type of attack where hackers send fraudulent emails or text messages in order to steal your personal information. It can be very effective and often leads to data breaches. Phishing has become increasingly prominent in the post covid 19 era targeting people's vulnerabilities.

Cyber espionage: This is the act of stealing sensitive information from businesses or governments for economic or political gain. Cyber espionage is a major threat to businesses in India and can be costly to recover from.

Data breaches: This is when confidential or sensitive data is accessed, stolen, or released without authorization. A data breach can have serious consequences for businesses, including loss of customers, damage to reputation, and financial losses.

How to Protect Yourself from Cybersecurity Risks

There are a number of steps that businesses can take to protect themselves from cybersecurity risks in India. Some of the most important include: Get Cyber Insurance: A Cisco study highlights that nearly 74% of SMEs in India suffered a cyber-attack or phishing incident in the last year**. Hence, Cyber Insurance is becoming increasingly popular in India, and for good reason. It can help businesses recover from a data breach or cyberattack and protect them from financial and other unwanted consequences.

Enhanced device and network security: This includes installing antivirus software, firewalls, and other security tools. It is also important to keep your software up to date and create strong passwords.

Train your employees: Employees are often the weakest link in cybersecurity, so it is important to educate them about phishing attacks, ransomware, and other threats. You should also create policies and procedures for dealing with security incidents.

Planning for disaster recovery: If your business suffers a data breach or cyberattack, you need to have a plan in place for recovering your data and restoring your systems. This can be costly and time-consuming, so it is important to have a plan in place beforehand.

What is Cyber Insurance and what does it cover?

Cyber-attacks may result in millions of dollars in losses in a variety of ways. According to global analysts, Cybercrime will cost the world $10.5 Trillion Annually by 2025. Cyber insurance thus is the most effective way to deal with the unknown. Cyber insurance enables you to manage the risks and mitigate the losses of doing business on the Internet. It is also known as cyber risk insurance or cyber liability insurance, meaning it covers you from both the risks of cyber-attacks and the after-effects of an attack.

In the event of a data breach or a cybercrime, cyber insurance covers both you and your clients, and the services thereby reducing the impact of lawsuits & liabilities on your business.

There are a number of different types of cyber insurance policies available, so it is important to find one that best suits your business. Cyber insurance can be expensive, but it is a necessary investment in the safety of your business.

Who needs Cyber Insurance?

The short answer: every business on the web. If you operate a company with internet-connected devices on your premises, you'll always be at risk of cyberattacks. The type of business you're in isn't important; hackers are industry agnostic, and they don't care about the size of your organization either.

Here's a list of questions to ask yourself if your company needs cyber insurance.

You are in the metadata business and you store or manipulate client information.

If your website has a payment gateway.

Your machinery and equipment use cloud or web services

Your business growth, marketing, and sales are dependent on the web.

Your work with sensitive data may open you to regulatory/civil litigations

Even if one of the above points is true for you, you need to be protected with a solid cyber insurance plan that could also be customized for you. Need help in finding one? Click here.

The future of cyber security and insurance

With growing digitization across all industries and a high in-flow of personal data across borders, lawmakers are faced with the challenge of balancing between the privacy rights of individuals and the needs of businesses to use personal data. When the new data protection act (currently, a bill) is implemented, a lot will change.

The risk and liability landscape for companies will see a significant effect. There will be greater demand for adequate insurance coverage to protect businesses from cyber and data breach exposure, especially with regard to proposed monetary fines and criminal penalties. Meanwhile, companies need to look into their internal processes and must take appropriate precautionary measures to prevent a data breach.

A data or cyber breach is unpredictable and often unavoidable, even with the use of technology and other measures. Cyber liability insurance could be your best bet to protect businesses from losses or damages resulting from cyber-attacks and data breaches. These expenses can include data loss and restoration, extortion, legal fees, and regulatory fines and penalties. It is advisable for start-ups and SMBs in India to make cyber insurance a must-have and not just an afterthought to protect their business. For best recommendation on cyber insurance

Bimakavach helps you insure simply, cover smartly.

Source:

*Hindu Business Line

** Business Standard/Livemint