Indian banks opt for online fraud insurance due to increase in cyber-crime
Indian banks are attempting to shield themselves from the backlash of online fraud by seeking insurance coverage.
India has seen fast Ecommerce growth as of late. With the rise in online transactions and purchases naturally comes a rise in online fraud. Data from Indian insurance firms shows large banks opting for Rs 500 crore ($8 billion) policies and mid-sized banks going for Rs250-300 crore ($4-$4.8 billion) policies to help protect them from online fraud.
"Demand for insurance policy against Phishing Phishing Phishing is a form of cyber-attack in which fake websites, emails, and text messages are used to elicit personal data. The most common targets in this assault are passwords, private cryptocurrency keys, and credit card details.Phishers disguise themselves as reputable businesses and other types of entities. In certain instances, reputable government organizations or authorities are impersonated in order to collect this data.Because phishing relies on psychological manipulation rather than techno Phishing is a form of cyber-attack in which fake websites, emails, and text messages are used to elicit personal data. The most common targets in this assault are passwords, private cryptocurrency keys, and credit card details.Phishers disguise themselves as reputable businesses and other types of entities. In certain instances, reputable government organizations or authorities are impersonated in order to collect this data.Because phishing relies on psychological manipulation rather than techno Read this Term, skimming and Internet hacking has gone up in the last one year. Enquiries have gone up and we are working on how to price the product and working on the wording," said TR Ramalingam, head of underwriting at Bajaj Allianz General Insurance.
During 2012-13 Indian banks lost banks lost Rs 17,284 crore ($2.8 billion) to fraud. Until these figures, insurance companies did not offer cyber-fraud protection to financial institutions. The new policies, which are becoming more and more common, have 1% and 2% percent liability. During 2012-13 a total of 62 banks filed 26,598 cases due to events of online fraud.
"The policy covers cyber extortion and breach of data privacy. There is a lot of talk around cyber insurance and people are actively looking to secure these exposures," said M Ravichandran, president, Tata AIG General Insurance.
Insurance firms like Tata AIG General Insurance also offer policies covering cyber-extortion. Cyber-extortion is when a cyber-criminal gains access to a banks record and data, offering to step back in Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term for a certain amount.
Last year, the ATM cards of a leading Indian bank were skimmed resulting in Rs15.48 lakh being stolen from account holders.
Image courtesy of Flicker
Indian banks are attempting to shield themselves from the backlash of online fraud by seeking insurance coverage.
India has seen fast Ecommerce growth as of late. With the rise in online transactions and purchases naturally comes a rise in online fraud. Data from Indian insurance firms shows large banks opting for Rs 500 crore ($8 billion) policies and mid-sized banks going for Rs250-300 crore ($4-$4.8 billion) policies to help protect them from online fraud.
"Demand for insurance policy against Phishing Phishing Phishing is a form of cyber-attack in which fake websites, emails, and text messages are used to elicit personal data. The most common targets in this assault are passwords, private cryptocurrency keys, and credit card details.Phishers disguise themselves as reputable businesses and other types of entities. In certain instances, reputable government organizations or authorities are impersonated in order to collect this data.Because phishing relies on psychological manipulation rather than techno Phishing is a form of cyber-attack in which fake websites, emails, and text messages are used to elicit personal data. The most common targets in this assault are passwords, private cryptocurrency keys, and credit card details.Phishers disguise themselves as reputable businesses and other types of entities. In certain instances, reputable government organizations or authorities are impersonated in order to collect this data.Because phishing relies on psychological manipulation rather than techno Read this Term, skimming and Internet hacking has gone up in the last one year. Enquiries have gone up and we are working on how to price the product and working on the wording," said TR Ramalingam, head of underwriting at Bajaj Allianz General Insurance.
During 2012-13 Indian banks lost banks lost Rs 17,284 crore ($2.8 billion) to fraud. Until these figures, insurance companies did not offer cyber-fraud protection to financial institutions. The new policies, which are becoming more and more common, have 1% and 2% percent liability. During 2012-13 a total of 62 banks filed 26,598 cases due to events of online fraud.
"The policy covers cyber extortion and breach of data privacy. There is a lot of talk around cyber insurance and people are actively looking to secure these exposures," said M Ravichandran, president, Tata AIG General Insurance.
Insurance firms like Tata AIG General Insurance also offer policies covering cyber-extortion. Cyber-extortion is when a cyber-criminal gains access to a banks record and data, offering to step back in Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term for a certain amount.
Last year, the ATM cards of a leading Indian bank were skimmed resulting in Rs15.48 lakh being stolen from account holders.
Image courtesy of Flicker