We live in a digital-first world where most of our daily activities, from banking to shopping, are done online. While this shift has made life easier, it has also opened the door for cyber criminals. Cybercrime is now one of the biggest risks individuals and businesses face. And yet, many people are unaware of how it works or what to watch out for.

In this blog, we will talk about the cybercrime types you should be aware of, how these crimes happen and what you can do to protect yourself.

Cyber-security risk sources

Before we dive into the different types of cybercrime, let’s understand where these threats originate. These are the most common risk sources in the digital space:

• Phishing scams: Fake emails or messages tricking you into sharing personal or financial information.
• Weak passwords: Using easy-to-guess passwords across different platforms.
• Outdated software: Systems without recent updates are easy targets for hackers.
• Public Wi-Fi networks: Unsecured networks can be a goldmine for cyber criminals.
• Malicious downloads: Clicking on unverified links or attachments can install harmful software.

Remember, cyber threats often target the weakest link in the system, usually the user. That’s why awareness is key.

5 types of cybercrimes

Let’s take a look at the 5 types of cybercrime you’re most likely to encounter:

1. Identity theft

This is when someone steals your personal information, such as your Aadhaar number or bank details, and uses it to commit fraud.

• Fake KYC updates or job offers often lead to identity theft.
• Your data can be used to open accounts, apply for loans or commit crimes in your name.

2. Cyberbullying and online harassment

Cyberbullying isn't limited to teens. Adults also face it in various forms like trolling, defamation and threats.

• Common on social media platforms.
• Often involves sending abusive messages, doxing or impersonating others online.

3. Financial fraud

This includes online scams that steal money from your bank accounts or digital wallets.

• UPI fraud, lottery scams and fake investment schemes.
• Victims are often tricked into revealing OTPs or clicking fake payment links.

4. Hacking

Hacking means gaining unauthorised access to a system or data.

• Often used to steal sensitive business data.
• Hackers may demand a ransom (in ransomware attacks) or sell data on the dark web.

5. Online data breaches

This happens when a company’s database is illegally accessed, and your data is leaked.

• Big platforms have faced this issue, exposing millions of user records.
• This data is then used for spam, fraud or phishing attempts.

Each of these cybercrime types can cause serious personal, financial or reputational damage.

The role of insurance: Liability and cyber insurance

Many people don't realise that insurance can offer a safety net against cyber threats. Here’s how:

• Cyber insurance covers you against financial losses due to cyber attacks, fraud or data breaches. It often includes expenses for legal fees, IT recovery and even extortion payments.
• Liability insurance helps businesses if a cyber attack causes data leaks or losses that affect third parties. It covers claims, penalties and litigation costs.

With rising digital dependency, having these insurance covers can be a smart move.

Conclusion

Cybercrimes are evolving every day, and so should your awareness. Understanding the different types of cybercrime is the first step towards protecting yourself in the digital world. While no system is 100% foolproof, awareness, digital and financial protection, such as cyber insurance or liability insurance, can go a long way in saving you from cybercrime.

Frequently asked questions

1. What are the most common cybercrime types?

The most common ones are phishing, identity theft, online banking fraud and cyberbullying.

2. How can I report cybercrime?

You can file a complaint online at the National Cyber Crime Reporting Portal or visit your nearest cybercrime police station.

3. Can individuals buy cyber insurance?

Yes, many insurers now offer individual cyber insurance plans that cover financial losses, legal expenses and more.

4. Are cybercrimes bailable offences?

It depends on the nature of the crime. Some offences are bailable, while others, like child pornography or hacking, are non-bailable.

5. How do I protect myself from cyber threats?

Use strong passwords, install antivirus software, avoid clicking on unknown links and regularly update your devices.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It is advised to verify the currency and relevance of the data and information before taking any major steps. Please read the sales brochure / policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.