Foolproof cyber insurance products can safeguard against online frauds

As cyber frauds are investigated by the law enforcement agencies, which come under the Union home ministry, it was informed during consultations that in order to facilitate victims or complainants to report cybercrime complaints online, the ministry has launched National Cyber Crime Reporting portal

In keeping with a reinforced determination to evolve a uniform approach for tackle frauds in online banking and transactions, and ending the menace, once and for all, experts are thrashing their brains to come up with insurance products that can come in handy and save millions of people from falling prey to cybercriminals.

According to sources privy to developments, subsequent to high-level consultations between the Union ministry of electronics and IT, finance and home to address issues related to cyber frauds, Insurance Regulatory and Development Authority (IRDA) has issued guidelines on "Product Structure for Cyber Insurance" for insurers with the objective of facilitating them in developing stand-alone cyber insurance products, specifically designed to address cyber risks.

As per its guidelines, insurers will strive to improve the development of cyber insurance market with new products and enhance benefits for policyholders, including others, sources pointed out.

It has been further directed in the guidelines that considering the demand for new cyber insurance products due to the dynamic nature of cyber-attacks and innovative challenges, general insurers shall continuously endeavour to design tailor-made products referring to model policy wordings and guidance provided in the document.

Sources informed that as cyber frauds are investigated by the law enforcement agencies, which come under the Union home ministry, it was informed during consultations that in order to facilitate victims or complainants to report cybercrime complaints online, the ministry has launched National Cyber Crime Reporting portal, which essentially caters to complaints pertaining to cybercrimes only. Complaints reported on this portal are dealt by the law enforcement agencies and police based on the information available in the complaints.

In addition to this, the national helpline and reporting platform provides a mechanism for persons cheated in cyber frauds to report such cases to prevent loss of their hard-earned money, sources informed.

The reporting platform works with active support and cooperation from the Reserve Bank of India (RBI), major banks, payment banks, wallets and online merchants.

The facility empowers both the banks and the police, by leveraging new-age technologies to share online fraud-related information and taking action in almost real time.

The loss of defrauded money in online cheating cases can be stopped by following the money trail and stopping its further flow before it is taken out of the digital ecosystem by the fraudster.

Sources said that the success of the helpline and reporting platform can be gauged from the fact that on several occasions, the flow of the money that the victim was cheated of has been stopped from reaching fraudsters even after it had been moved to five different banks, to hide the trail.