Request a demo for a perfect solution apt for your business. Take this journey with us to improved growth!

Success

Download Link Sent to Your Inbox

Deepfakes: Does Your Cyber Insurance Protect You From Digital Chameleons?

Zopper Team Basics of Insurance March 20th, 2024

KPMG reports that the availability of deepfake videos online is growing at a rate of 900% annually - let that statement sink in.

Deepfake videos have turned into a social menace. This synthetic media form is designed specifically to manipulate your opinion and may seem quite authentic to your eyes and ears - eerily so. In December last year, two industry giants came forward to debunk the videos of them circulating on social media falsely utilising their identities to spread misinformation. India's awareness of deepfakes heightened when a scandalous video of a Bollywood actress began circulating on social platforms, prompting significant concern. The incident garnered attention to the extent that even the Prime Minister of the country issued a statement, strongly condemning the matter. Subsequently, deepfake videos transitioned beyond social media platforms and infiltrated other domains, including boardrooms.

Implications For Cyber Insurance

With the rapid advancement of AI and machine learning technologies, cybercriminals are leveraging deepfakes as a potent tool to deceive and manipulate victims for financial gain or reputational damage. As the threat landscape evolves, businesses are turning to cyber insurance as a critical component of their risk management strategy. Cyber insurance policies typically cover a range of risks, including data breaches, ransomware attacks, and business interruption due to cyber incidents. However, the question remains: does your cyber insurance policy adequately protect you from the risks posed by deepfakes?

Evaluating Coverage

While traditional cyber insurance policies may offer some level of coverage for certain cyber threats, the nuanced nature of deepfake attacks presents unique challenges for insurers and policyholders alike. Assessing the extent of coverage for deepfake-related risks requires careful examination of policy terms, exclusions, and limitations. Insurers may need to update their policies to explicitly address deepfake-related risks and provide adequate coverage for potential losses.

Need For Enhanced Protection

Given the evolving nature of deepfake technology and its potential impact on businesses, there is a growing need for enhanced protection against deepfake-related risks. In August 2019, a significant event unfolded when deepfake audio technology was employed to replicate the voice of a CEO, resulting in the fraudulent transfer of funds. Such misuse marked the emergence of a potentially perilous trend. Insurers may consider offering specialised coverage options tailored to address the specific vulnerabilities and exposures associated with deepfake attacks. This could include coverage for reputational harm, legal expenses, and crisis management services in the event of a deepfake incident. For instance, a cyber policy can mitigate the impact by covering revenue losses or facilitating the expenses incurred in hiring public relations consultants following a reputational attack.

Besides a robust cyber insurance plan, here are a few additional proactive measures companies can take to secure themselves.

Conclusion

While cyber insurance can provide valuable protection against a range of cyber threats, including data breaches and ransomware attacks, the evolving threat landscape necessitates a reevaluation of coverage options to address the unique risks posed by deepfakes. By working closely with insurers and staying informed about emerging cyber risks, businesses can better protect themselves from the digital chameleons of the modern world.

share this article

Recommended articles

Basics of Insurance | June 5th, 2023
Insurance is an essential component of financial planning and risk management. It provides a safety net against unexpected events and uncertainty that can have significant financial consequences.General insurance, also known as non-life insurance, is one of the most common forms of insurance that covers a range of risks such as property damage, liability, motor, and travel insurance.General ins...
Basics of Insurance | June 29th, 2023
Business insurance helps to protect companies from financial harm and workplace hazards that could happen in the business. Every potential danger that your company can encounter is covered by insurance. The costs and coverage options offered by insurance companies vary. You should talk to your insurance broker or agent about the types of insurance products that are available, as per your speci...
Basics of Insurance | June 29th, 2023
In today's world, education has become more important than ever, and pursuing higher studies often requires financial assistance. Fortunately, several Edtech companies have emerged in recent years, offering education loans to students. These companies understand the financial challenges faced by students and provide them with convenient loan options to support their educational aspirations...
Basics of Insurance | June 29th, 2023
Education is essential in today's fast-paced world for determining one's destiny. However, students and their families frequently face a heavy financial burden as a result of the rising expense of education. This is where edtech platforms that provide education loans enter the scene, giving students pursuing higher education financial support. This article will examine three significa...

Newsletter

Be the first one to know about latest happenings in the InsurTech sector. Click below to subscribe to our newsletter!