CYBER LIABILITY INSURANCE: THE FUTURE OF INDIAN ECOMMERCE INFRASTRUCTURE

 Bharati Law Review, April – June, 2017 14

employees are limited in their knowledge of data

Technology. albeit the complaints are reported, the response time

and counter procedures aren't in situ . at the present most

institution not just financial institutions use the subsequent

measures to confront the cyber related issues: anti-virus software,

firewalls, intrusion prevention systems, vulnerability scanning

tools, server-based access control lists, intrusion detection tools,

encryption for data in transit, spyware and malware detection,

and encrypted files. But all this has been vainly

Symantec’s Internet security threat report (Vol.21) revealed that

Indian enterprises got to plan for repeated targeted attacks. In

2010-11 India was the 10th most heavily cyber attacked country,

today it's second only to us , with internet usage rising

exponentially from 202 million users in March 2010 to 412 million

users in March 2011 to 485 million in March 2012, India is now

second only to China in number of telephone devices connected

to Internet. consistent with sources malicious attacks against India

have originated from 20 odd countries. consistent with two recent

KPMG surveys cyber security issues rank highest among risks

and facing banks. These results reflect and ensure the trend over

the past two years where three major cyber-attacks on banks

became public. Two of the three attacks resulted in financial

losses of around USD 100 million and raised discussions about

the reliability and security of digital networks employed by banks all

over the planet .4 All this reflects how vulnerable we are in terms of

cyber security. Cyber-attacks, like the hacking of JPMorgan

Chase, are raising concerns about security and highlight the necessity

for stringent cyber security policies worldwide. To top this, we do

not have an over reaching cyber security law, privacy law, data

protection law or cyber Insurance In India breach disclosure laws.5 The RBI

guidelines define ‘fraud’ as a deliberate omission or commission

by a person , administered in course of banking transaction or in

the books of accounts maintained manually or under computer

system in banks, resulting into wrongful gain to a person for a

temporary period or otherwise, with or with none monetary loss

to the bank’. Frauds associated with internet or related devices are

known as cyber frauds. the knowledge Technology Act, 2000

further defines Cyber Crime as ‘any criminal activity that uses a

Bharati Law Review, April – June, 2017 15

computer either as an instrumentality target or as a way for

perpetuating further crimes’. From the observations made above

as to the extent of risk the word FRAUD are often safely be summed

to be acronym of ‘Financial Risk Around Unguarded Deal’ and

how unguarded the deal is that the explanation for fraud.6If we are to require a

bird’s eye view on sorts of cyber frauds and methods adopted to

carry out such breach it are often tabulated as follows:

TYPES OF CYBER

FRAUDS

METHODS OF

CYBER

SECURITY

BREACHES

REASONS FOR

CYBER

SECURITY

BREACHES

Phishing Malware:

Trojans, virus,

spyware,

botnets,

ransom wares

Cyber

Terrorism

Vishing/SMShing Email

spamming

Business

Disruption

Skimming Phishing Socio/political

cause

Spoofing Social

engineering

attacks

Corporate

rivalry and

espionage

Mule recruitment Exploitation of

tech

vulnerability

Financial

Frauds and

embezzlements

419 fraud Cyber

defamation

Theft of

Intellectual

property

Virus hoax mail DDOS attacks Theft of

sensitive