A cyber insurance policy can protect you if your credit card is hacked and used for unauthorised transactions, as long as this coverage is part of your policy.

"Most individual cyber insurance plans today include protection against unauthorised online transactions, which means that if your card or bank details are stolen through phishing, or through a cyber-attack (an intrusion in your device), and someone misuses them for online purchases or fund transfers, the insurer will reimburse the financial loss subject to policy terms and conditions," says Amarnath Saxena, Chief Technical Officer- Commercial, Bajaj General Insurance Limited.

While your bank provides a baseline of protection, particularly with zero-liability policies for credit card fraud, cyber insurance provides a much broader safety net. Cyber insurance covers a range of cybercrimes beyond just credit card fraud, including phishing, online shopping scams, identity theft, and cyber extortion. This is especially relevant during the festive season when e-commerce fraud and phishing attempts peak.

"Dealing with fraud can be complicated. Many policies cover legal fees to pursue action against fraudsters, costs for credit monitoring services, and access to cybersecurity experts to help you recover lost data or restore your device to the closest condition possible to how it was before the cyber-attack. Some comprehensive policies even include coverage for psychological counselling expenses to help you deal with the stress caused by severe cybercrime," said Saxena.

What you must do if your cards get hacked. In the unfortunate event of a hack, acting quickly is crucial for a smooth claim process. Immediately report the unauthorised transactions to your bank and request a block on the compromised card to prevent further misuse. Lodge a written complaint or First Information Report (FIR) with the local police or cybercrime cell. Many insurers require this as proof of the incident. You can also use the National Cyber Crime Reporting Portal for this purpose. Notify your cyber insurance provider within the timeframe specified in your policy, typically within 24 to 48 hours. Provide them with all the necessary documents, including transaction proofs and the FIR.

While cyber insurance gives you a financial safety net, it is equally important to practice safe online behaviour. Always shop on verified websites and look for "https://" in the URL. Avoid entering your card details on links received via email or text, as these are often phishing attempts. Use a secure internet connection and avoid public Wi-Fi for online transactions. Activate two-factor authentication (2FA) wherever possible for an extra layer of security.

With the right precautions and a comprehensive cyber insurance plan, you can enjoy festive shopping online with peace of mind, knowing you are protected if something goes wrong.