Last week, I was catching up with a close MBA friend and he shared something that left me completely taken aback.
10 days ago, at around 12:30 PM IST, he received a text from his son urgently asking for money to book his annual December flight tickets from the U.S. Along with the message was a link to make the payment for the ticket.
In haste, he made the payment immediately, only to realise later that he had fallen prey to a cleverly orchestrated scam.
I was more taken aback at how my friend, someone who is extremely cautious and prudent, fell for this cyberattack. He is still making multiple visits to the cyber crime cell to get the criminals caught.
We tend to think cyber attacks happen to others until we fall prey to them.
Cyberattacks are becoming increasingly sophisticated and innovative with completely believable narratives.
In today’s hyper-digital world, where assets, reputations, and even identities exist online, cybersecurity has become extremely relevant. It is not only about protecting what you own but also protecting your identity.
In this blog, we’ll explore-
- Cyber-security threats
- How to secure your personal data and digital identity
- How to secure your banking and financial transactions
- How to secure your investments
- Cyber insurance to protect your wealth
Let’s dive in.
The great cyber-threat landscape
In 2023, India recorded over 79 million cyberattacks, becoming the third-most targeted country for phishing globally—following the US and the UK. This marked a 15% increase from the previous year.
The surge continued into 2024. In the first quarter alone, over 500 million cyberattacks were intercepted, and Indians faced financial losses exceeding INR 1,750 crore.
This alarming rise in cybercrimes has made cybersecurity a non-negotiable aspect for not just institutions but also individuals.
It is no longer about “if” you’ll be targeted. It is a matter of “how” you should safeguard yourself.
While cybersecurity itself is a very vast universe, today let’s focus on how we, as individuals can protect ourselves against cyber threats.
Why wealth creators are prime targets of cyber security frauds
In January 2023, a security breach at the Ministry of Corporate Affairs led to the leak of private and sensitive data belonging to over 9.8 million Indian citizens, including prominent business tycoons and Bollywood celebrities. However, fixing it took the Computer Emergency Response Team (CERT-IN) over 11 months. This highlights not only the advanced nature of cyber criminals but also the increasing risks faced by those with substantial wealth and reputation.
Cyber security is particularly more relevant to the affluent as –
- Substantial wealth makes them more vulnerable to cybercriminals
- Publicised breaches can severely harm their reputation
- They have access to more confidential data
- Multiple social media profiles create multiple vulnerability points
- The majority of investments and assets are now digital
- Multiple platforms, apps and intermediaries to manage finances and investments
What is concerning is that personal and financial data can be leaked from multiple sources, and there is a rise in sophisticated cybercriminals with access to advanced tools and systems.
What needs to be secured?
Let’s examine the 3 major areas that you need to protect from cyber crimes.
A. Personal data and digital identity
Email addresses, phone numbers, or even harmless social media posts—personal data has become the new weapon for cybercriminals. Every data point offers an entry point or opportunity for cybercriminals to exploit the user’s personal networks to gain access.
Here’s a checklist for you to ensure your personal data and digital identity is safe –
B. Banking and financial transactions
With the digitalisation of banking, we have become more prone to cyber-attacks.
While regulators like SEBI, RBI, the Indian Computer Emergency Response Team (CERT-In), etc., are doing an exceptional job of educating and safeguarding investors, cybercriminals are still exploiting individuals’ personal digital habits and vulnerabilities.
Here are some common ways cybercriminals are breaching banking and financial security —
- Phishing attacks on banking credentials – Fake emails, texts, or calls posing as your bank attempt to steal login credentials, OTPs, or card details. These scams are crafted so convincingly that even cautious individuals fall victim to them.
- Man-in-the-middle (MITM) attacks – Using unsecured public Wi-Fi? Hackers can intercept your data during transactions, exposing sensitive financial information.
- Banking malware (Trojans) – Malicious software sneaks onto your devices, capturing critical details like your login credentials or transaction data without your knowledge.
- SIM swapping – Fraudsters manipulate telecom providers to transfer your phone number to a new SIM card, hijacking OTPs and two-factor authentication codes.
- Credential stuffing – If you’ve reused passwords across platforms, attackers can exploit leaked credentials from unrelated breaches to access your bank accounts.
C. Investments and wealth
As wealth increasingly moves into the digital realm, so do the risks. For an investor with substantial wealth, the stakes are particularly high.
Some common cyber threats while investing digitally are –
- Unauthorised account takeovers – Hackers target investment accounts to execute unauthorised transactions or liquidate assets, often escaping detection until it’s too late.
- Phishing scams – Cybercriminals impersonate brokers, wealth managers, or financial institutions to trick investors into revealing sensitive login credentials or account details.
- Unsecured trading platforms – Online trading platforms with weak encryption or minimal regulatory oversight expose investors to breaches, compromising their portfolios.
- Fake investment offerings – Fraudulent cryptocurrency schemes and scam investment platforms exploit the desire for high returns, resulting in significant financial losses for investors.
- Unauthorised transactions – Weak credentials or reused passwords allow attackers to gain access to investment accounts, enabling them to manipulate or siphon assets.
As investors use different platforms and intermediaries to manage, invest or track their investments, it is extremely important to ensure the intermediaries you use/work with are regulated and follow strict cyber security measures.
If you are investing digitally, you must ensure that your assets and data are safeguarded.
At Dezerv, over 90% of our clients are onboarded digitally and transact and manage their investments digitally. So, for us, cyber security and digital governance are critical. We have a dedicated team of exceptional industry veterans to ensure we follow the best practices in cyber security.
So, the next time you start working with an intermediary or download an app to help you invest/manage your investments, make sure you think of cybersecurity.
And, while the onus is on us to take necessary measures to protect ourselves against cyber crime, the regulatory bodies are also doing an exceptional job making the cybersecurity ecosystem stronger.
Here’s a reminder of why SEBI’s efforts on cyber security/resilience are so valuable and the role of custodians in managed assets so critical to the integrity of India’s capital markets.
Cyber insurance to protect your wealth
Wealth creators who own/manage a substantial portion of their wealth and assets digitally should consider cyber insurance to protect themselves against financial losses caused by cyberattacks.
Cyber insurance is a safety net that covers financial losses, legal costs, and even public relations efforts after a breach.
While cyber insurance for individuals is not so common in India yet, many insurance providers, such as Tata AIG, ICICI Lombard, HDFC ERGO, and Bajaj Allianz, cater to this segment.
Wealth creators can access cyber insurance plans with rates ranging from INR 3 per day to over INR 10 lakh a year.
Here’s how cyber insurance works –
1. Risk assessment – You approach an insurance provider who will collect and collate information from you to identify your digital vulnerabilities. This process will require accurate data and information from your side to ensure you are protecting yourself from different types of cyber fraud.
2. Policy purchase – Choose and purchase a policy with adequate coverage, depending on your needs.
3. Incident reporting – In the event of a cyber incident, contact the insurance provider while providing evidence and file a claim.
4. Recovery support – Access IT, legal, or recovery assistance and implement preventive measures for future protection.
There are over 1300+ cyber security companies in India that are building new-age solutions for cyber security. This is a clear indication of the risks wealth creators are facing and the need to protect their assets and wealth.
In summary
Today, the question isn’t whether you should invest in cybersecurity — it’s whether you can afford not to.
From protecting personal data and safeguarding transactions to ensuring investment and asset security, cybersecurity is vital. Technologies like AI-driven monitoring and concierge services are reshaping the landscape, but the key lies in proactive measures and constant vigilance.
The digital age has opened unparalleled opportunities for wealth creation, but with those opportunities come new risks. Protecting your legacy starts with ensuring your wealth is secured from cyber criminals. Here’s your sign to start taking cyber security seriously!