Nowadays, we have everything at our fingertips. We can do almost anything, be it shopping, meeting people, going out with friends, food, movies and millions of other things, with a tap of our fingers. But with the prevalence of technology, the dangers and incidents of cybercrimes are increasing at an alarming rate, especially financial frauds and deepfake videos. So, insurance companies have come up with “cyber covers,” which aim to protect from cybercrime.
According to the information given, the insurance companies are now opting for small cyber security covers called Sachet Covers, specifically designed to protect against the threats of cyber fraud. The insurance covers are made available for Rs 3 per day and are built to provide safety from identity theft, cyber extortion and online bullying.
How is cyber fraud conducted?
According to a report in The Times Of India, cybercriminals are experts in impersonating the closest to us and even company executives. It could include family members or senior company executives, while the impersonation is done through fake videos, voice clones or text messages, which are created with a software known as Generative AI. This software is infamous for creating alarmingly real-looking videos and audio.
According to Parthanil Ghosh, the director of HDFC ERGO General Insurance, “Fraudsters are indulging in illegal activities by making pictures, videos and sounds like real with the help of AI.” A Deloitte report stated that India’s cyber insurance market is expected to see a growth of 27 to 30 per cent, in the next five years. In 2023, it stood at 50 to 60 million dollars, the reports added. Since the market and the risks associated with it are continuously growing, the insurance coverage for AI-based fraud is being considered by the companies.
Earlier, the cyber-related risks were limited to SMS phishing, fraudulent calls and OTP theft but now, people are more cautious of these methods, giving the cybercriminals a way to evolve. The Lockton India CEO, Sandeep Dadia states, “The risks with Gen AI have now moved beyond financial loss to reputational damage and emotional stress generated by harassment.”
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