What is a cyber attack?
A cyber attack is any attempt to access, steal, damage, or disrupt digital systems or data without permission. The goal is often to compromise the confidentiality, integrity, or availability of information. Startups, especially in India’s fast-growing digital economy, are frequent targets because they hold valuable data but may not have robust security measures in place. This is where cyber liability insurance becomes essential, it helps manage the risks and costs that follow an attack.
90% of all cyber attacks start with phishing
According to Security Magazine (2023), between 80-95% of all cyber attacks begin with phishing. Phishing scams trick employees into clicking malicious links or sharing sensitive information, opening the door to larger breaches. One careless click can expose a startup to major financial and legal risks.
What are the types of cyber attacks that startups should look out for
Startups should be aware of multiple evolving threats:
- Phishing and social engineering: Fraudulent messages that trick employees into revealing credentials.
- Ransomware: Malware that locks your data until a ransom is paid.
- Data breaches: Unauthorized access and theft of sensitive business or customer information.
- DDoS (Distributed Denial of Service) Attacks: Overwhelming your systems with traffic to disrupt operations.
- Malware and viruses: Malicious software that damages or steals data.
- Credential theft: Stealing passwords to gain access to systems.
- Insider threats: Employees or contractors misusing access, intentionally or accidentally.
Each of these attacks can lead to downtime, data loss, customer trust issues, and regulatory fines. That is why it is suggested to follow solid security practices with the help of cyber security insurance that can protect your startup.
How can you protect your startup from cyber attacks
It helps the reader understand why the list exists, what they should expect, and how each point fits into the bigger picture. Without it, a list can feel like random bits of information floating around with no direction
- Train employees to spot phishing and other scams.
- Enforce strong passwords and multi-factor authentication.
- Keep systems updated with the latest security patches.
- Back up data securely, offsite and regularly.
- Use network protections like firewalls, antivirus, and intrusion detection.
- Invest in cyber liability insurance to cover financial and legal fallout from breaches.
What was the first recorded cyber attack in India?
India’s first notable cybercrime-related legal dispute was Yahoo! Inc. vs. Akash Arora (1999). In this landmark case, Akash Arora had registered the domain name “yahooindia.com,” which was deceptively similar to the well-known Yahoo! brand. Yahoo! sued for passing off, claiming the domain could mislead users into believing it was affiliated with the original Yahoo! site. The Delhi High Court ruled in favor of Yahoo!, setting an important legal precedent for cyber trademark protection in India.
Even before this, cyber threats in India began surfacing as early as 1992, with the detection of polymorphic viruses, a type of malware that mutates its code to avoid detection by antivirus software. These early signs marked the beginning of cybersecurity concerns in the country, highlighting the need for both technological and legal frameworks to manage digital risks.
Top 5 Cyber attacks in India
1. Operation Sindoor (2025)
What happened: In early 2025, a large-scale cyber onslaught known as Operation Sindoor targeted Indian digital infrastructure. Over 1.5 million cyberattacks were launched against government portals, financial systems, and critical infrastructure such as energy and telecom.
Impact:
- Government services experienced temporary shutdowns.
- Sensitive data was at risk across sectors.
- Several fintech and SaaS platforms reported suspicious activities and login anomalies.
Relevance: This event highlights why cyber liability insurance and proactive cybersecurity measures are critical for tech-first companies. Even a DDoS or minor breach can affect business continuity and customer trust.
2. Dance of the Hillary Malware (2025)
What happened: A sophisticated malware strain nicknamed Dance of the Hillary infected systems across India’s financial and healthcare sectors. It entered via phishing emails disguised as official updates and silently harvested sensitive data.
Impact:
- Bank servers were compromised.
- Patient records in several hospitals were exposed or held for ransom.
- The malware remained undetected for weeks.
Relevance: If your startup handles customer data, especially financial or health-related, you’re at risk. This attack underlines the need for endpoint protection, cyber insurance, and employee awareness training.
3. Jamtara Phishing Scams
What happened: Named after a small town in Jharkhand, Jamtara became notorious for organised phishing operations. Cybercriminals posed as bank executives or telecom agents and scammed thousands by tricking them into sharing OTPs, CVVs, or PINs.
Impact:
- Individuals lost money.
- Several businesses reported employee-targeted phishing and payroll frauds.
- Led to widespread awareness campaigns by banks and telecoms.
Relevance: Even non-technical employees can be a weak link. HRs should mandate cyber hygiene training, and startups must consider insurance for social engineering fraud, often excluded in basic cyber policies.
4. COVID-19 Pandemic Attacks (2020)
What happened: During the lockdown, cybercrime surged. Threat actors exploited the shift to remote work with phishing, ransomware, and Zoom-bombing attacks. Healthcare systems and ed-tech startups were primary targets.
Impact:
- Hospitals and labs were hit with ransomware.
- Remote teams fell prey to phishing campaigns disguised as COVID advisories.
- Work-from-home setups became new attack surfaces.
Relevance: This shows the importance of cyber insurance for startups and SMEs with distributed teams. Protection is about your office firewall, employee devices and remote logins too.
5. Banking Sector Breaches
What happened: Over the years, multiple data breaches in major Indian banks led to exposure of millions of customer records, including phone numbers, account details, and transaction logs.
Impact:
- Customer trust eroded.
- Regulators imposed strict data protection rules.
- Financial institutions invested heavily in digital risk management.
Relevance: Even if you’re a small fintech startup, you’re held to high standards. Cyber liability insurance helps offset costs of data breaches, legal fees, PR damage control, and client compensation.
How many cyber attacks a day?
Globally, the average organization faced more than 2,200 cyber attacks per day in 2024 (Cobalt). In India, CERT-In recorded thousands of attacks daily in 2025, with many incidents specifically targeting startups and SMEs.
Key Takeaway: Strong security measures combined with the right cyber liability insurance provide essential protection, ensuring that a single attack doesn’t derail your business.
Conclusion
Cyber risks are part of modern business. But the right preparation makes all the difference. With Pazcare, you get transparent, tailored cyber liability insurance that supports your startup through challenges, so you can focus on scaling with confidence. Don’t wait for an attack.
.svg)
.svg)