As India’s digital economy grows, households and individuals face rising threats from cyber fraud. From UPI scams to identity theft, cyber incidents can hit both wallets and peace of mind. Cyber insurance is increasingly being recognised not just as a financial safety net, but as a comprehensive support system for victims.
Common cyber frauds targeting individuals
Experts say the typical cyber fraud in India often begins with social engineering, vishing calls(fraudulent phone calls from scammers pretending to be trusted entities), phishing links( fraudulent URLs designed to trick into visiting a malicious website), or SIM-swap attacks.
Rushik Patel, associate director at EDME Insurance Brokers Ltd., notes, “Victims are frequently tricked by fake refund requests or lose mobile network access after SIM cloning. Fraudsters then move money out using OTPs, with losses ranging from Rs 20,000 to several lakhs. Recovery is difficult without insurance, especially if reporting is delayed.”
What cyber insurance actually covers?
Many consumers assume cyber insurance covers all online frauds, but experts caution this is rarely true. Common exclusions include voluntary sharing of OTPs or passwords, prior-known circumstances, investment losses, and intentional or malicious acts. Delays in reporting incidents or incomplete documentation often result in partial or rejected claims.