Data Breach Drama: When Trust Turns Costly In A Digital Age

Amid data breaches surges, Indian businesses are prone to financial and reputational fallout. Can cyber insurance emerge as a safeguard?

- SHIVANI TIWARI

Technology disruption is at the forefront of revolutionizing every sector in India. We have witnessed a transition from physical stores to online platforms at an unprecedented speed. Online presence or online activities such as internet searches, social media posts, online shopping, or a newsletter subscription are stored as part of your digital credentials that leave the digital footprints. Some of these actions, such as accepting cookies or using apps, may seem routine or go unnoticed. However, they contribute to the collection of personal data, expanding your digital footprint and companies are reported of selling personal data to third parties. In more concerning situations, one's personal information may be compromised during a data breach. So the question arises: what exactly constitutes a data breach? Do all cyberattacks fall under data breach? The answer is no. A data breach occurs when unauthorized parties access your personal or confidential information, such as bank details, healthcare data, or corporate data among other sensitive data. However, not all cyberattacks are data breach. For instance, a Distributed Denial of Service (DDoS) attack, which overloads a website or system with traffic, does not involve unauthorized access to data. Thus, it's not a data breach. On the other hand, a ransomware attack is considered a data breach. Additionally, physical theft including files or hard drives also qualifies as data breach. According to Falcon Feeds, India experienced 593 data breaches in the first half of 2024.

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