Cyber insurance plans emerge as scam cases climb

At least 5 insurers roll out plans that generally cover cybercrime-related risks

- Joyce Lee

Coverage for physical break-ins and theft has long been a fixture in home insurance. Amid the rising tide of cybercrime, a new type of plan has emerged to also protect individuals from digital break-ins.

Personal cyber insurance, first rolled out by Etiqa as a standalone policy in 2018, is now offered by at least five insurers in Singapore, reimbursing cybercrime victims up to $25,000 annually for their financial losses.

These plans generally cover cybercrime-related risks such as unauthorized transactions, e-commerce scams and identity theft.

Scam victims in Singapore lost $1.1 billion in 2024, marking a record high in a single year, according to Singapore police data.

Police received the highest number of scam reports ever in 2024, with 51,501 cases recorded compared with 46,563 cases the previous year.

The most common ruse in 2024 was e-commerce scams, with 11,665 reported cases and victims losing at least $17.5 million.

The increasing frequency of cybercrime is coupled with gaps in public awareness.

A survey by the Cyber Security Agency of Singapore, released on July 2, found that three in four people in Singapore cannot distinguish deepfakes from genuine content — a concern given that deepfakes are predominantly used by criminals to deceive victims.

While two-thirds of respondents in the survey were able to identify all phishing content, only 13 per cent correctly identified all phishing and legitimate content when presented with a mix of both content types.

Notably, $26,000 was lost in two weeks to Blackpink concert ticket e-commerce scams in June.

A spokeswoman from General Insurance Association said: "Insurers offering personal cyber insurance policies are responding to emerging consumer protection needs and cyber risks.