Organizations in India in Q1 2024 faced an average of 2,807 weekly cyberattacks, an increase of 33% from the previous year.” No business—large or small—is immune.” (Check Point Research, 2024). Technology has revolutionized the way businesses operate. Digital spaces, from e-commerce firms and cloud-based services to automation and data analytics systems, are the motor that powers firms today. However, with this significant technological dependency, cyberattacks have an inherent risk. Cyberattacks are no longer a future threat but an actuality for businesses in India. They’re a daily reality.
For any business size, from the independent local store to the global enterprise with tens of thousands of employees, the dangers are real, and the price of inaction may be the ultimate price of life for this business. This blog goes behind the scenes as it discusses the reasons why cybersecurity and cyber insurance are so critically important for businesses of all sizes and how they can protect your operations, money, and tarnished brand name.
The Rising Threat of Cyber Attacks
Cyberattacks have grown in frequency, sophistication, and impact. Criminals are leveraging advanced technologies such as artificial intelligence, automation, and social engineering to launch devastating attacks.
Key Statistics to Know in 2024
- India is the second-most targeted country globally for cyberattacks.
- 33% surge in cyberattacks reported in Q1 2024 compared to the previous year.
- RansMitigata Cyber insurance & security…omware attacks dominate: Over 53% of all cyber attacks in India are due to ransomware.
- Cost of a data breach: The average cost in India rose to ₹20 crore in 2023 from ₹17.5 crore in 2022. (IBM Data Breach Report, 2024)
Why Cyber Threats Are Escalating
- Increased Digital Adoption: Following the pandemic, digital systems have been used across all company sizes in operations, communication, and sales.
- Growing Data Volumes: In today’s world, companies are faced with a massive amount of private data about customers, employees, and finances and are, as such, attractive targets.
- Sophistication of Threats: Attackers use AI-based tools to mitigate existing security techniques.
- Human Errors: Many breaches are caused by human error (e.g., poor password choice or clicking phishing links).
The Cost of Ignoring Cybersecurity
Ignoring cybersecurity is no longer an option. A cyberattack’s impact is far from its costs, though.
Financial Impact
Financial fallout from cyberattacks can be crippling, and especially so for small businesses. The costs include:
- System Repairs: Fixing compromised systems and infrastructure.
- Data Recovery: Retrieving lost or encrypted data, often requiring specialized services.
- Ransom Payments: Firms that suffer a ransomware attack often face pressure to pay attackers.
- Legal Penalties: Non-compliance with India’s Digital Personal Data Protection Act will impose severe penalties on the violators, including heavy fines.
Operational Impact
- Downtime: Cyberattacks often paralyze operations, leading to lost revenue.
- Supply Chain Disruptions: Compromise in one company can flow downstream to its suppliers and partners.
Reputational Impact
When a company can shield its data from customers, employees, and investors, it gains confidence. Negative publicity can tarnish a brand for years.
What is Cybersecurity?
Cybersecurity is an ensemble of methods and actions to protect those systems, networks, and information against attack.
Core Components of Cybersecurity
- Network Security: Protecting the base network topology from unauthorized access, misuse, and theft.
- Application Security: Ensuring that software applications are secure from external threats.
- Endpoint Security: Defending cyberattacks against equipment such as computers, smartphones, and servers.
- Data Security: Data encryption to prevent the data from being accessed or stolen.
- Identity Management: User authentication training systems for the interfaces of sensitive systems.
Key Cybersecurity Measures
- Regular Updates: Keeping all software and systems updated to patch vulnerabilities.
- Firewalls and Antivirus Software: Acting as the first line of defense against threats.
- Multi-Factor Authentication (MFA): Adding an extra layer of security to user logins.
- Employee Training: Employee training on identifying phishing attacks and implementing good cyber hygiene.
- Incident Response Plans: Develop a comprehensive planning document outlining how to respond to cyber incidents promptly and efficiently.
The Role of Cyber Insurance
Notwithstanding cybersecurity measures, it is impossible to be 100% protected against attacks. This is where cyber insurance becomes indispensable.
What is Cyber Insurance?
Cyber insurance is a policy designed to reduce a company’s financial loss as a consequence of a cyber incident.
What Does It Cover?
- Data Breach Costs: Legal expenses, regulatory fines, and notification costs.
- Ransom Payments: Money for blackmail requests, although that is usually a desperate attempt as a last resort.
- Business Interruption: Compensation for lost revenue due to operational downtime.
- Legal Liabilities: Covers lawsuits arising from data breaches.
- Incident Response Costs: Capability of securing access to subject matter experts in incident management and containment.
Cost of Cyber Insurance
The estimated average yearly cyber insurance premium paid by Indian SMEs in 2024 ranges between ₹50,000 and ₹5,00,000, depending on the type of insurance chosen.
Large corporations may pay upwards of ₹ one crore. However, these coverages are only a fraction of the potential loss that companies could incur by foregoing insurance.
How Cybersecurity and Cyber Insurance Work Together
Cybersecurity and cyber insurance are not mutually exclusive but are interdependent. An effective cybersecurity program lowers the probability of breaches, and cyber insurance ensures minimal financial and operational damage in the event of a violation.
For Small Businesses
Small businesses are commonly believed to be too small to be targeted. However:
- 43% of cyberattacks globally target small businesses.
- Many small businesses need to be able to recover with insurance.
For Large Enterprises
With nation-state attacks, corporate espionage, insider attacks, etc., growing larger-scale enterprises are subjected to intricate attacks. Cyber risk coverage for such entities shall encompass various events and often require tailored incident response teams.
Why Cyber Health is a Necessity in India
India’s rapid digital transformation has outpaced its cybersecurity infrastructure. In Tier 2 and Tier 3 cities, small businesses still rehearse the use of digital tools without paying adequate attention to security vulnerabilities. In the meantime, such large companies are responsible for sensitive information, which can be scaled to large enough dimensions to become a serious opportunity for exploitation.
Cyber Threat Trends in 2024
- AI-Powered Attacks: Cybercriminals use AI to develop highly targeted phishing attacks and malware.
- Supply Chain Attacks: Targeting vendors to infiltrate larger organizations.
These areas are most attacked in India since the processed data are extremely sensitive.
How Mitigata Can Help
Mitigata is a company focused on providing customized cyber insurance and cybersecurity services to the corporate business in India.
Why Choose Mitigata?
- Affordable Plans for SMEs: Cost-effective policies designed for small and medium businesses.
- Comprehensive Coverage: Protection against ransomware, phishing, data breaches, and more.
- Expert Support: Access to incident response teams and cybersecurity experts.
- Custom Solutions for Large Enterprises: High-limit policies and global coverage for multinational corporations.
Take Action Today
Don’t wait for a cyberattack to disrupt your business. Safeguard your company, reputation, and finances with Mitigata’s cybersecurity and cyber insurance offerings. Visit Mitigata to learn more.
