The 2025 Cyber Risk Report, released by a global consulting firm, has highlighted a significant rise in cyber incidents across the Asia-Pacific region, with India seeing a sharp increase in threats due to rapid AI adoption.
The report outlines that the growing use of artificial intelligence and a complex geopolitical climate are fuelling a wave of more frequent and sophisticated cyberattacks. Based on Cyber Quotient Evaluation (CyQu) scores from over 3,000 clients across Asia-Pacific, EMEA, Latin America, and North America in 2024, the findings reflect broader concerns over cyber resilience. The CyQu system, used by more than 20,000 users, provides insights that support both risk assessment and insurance underwriting.
In 2024, the Asia-Pacific region witnessed a nearly 30 percent increase in cyber incidents. Looking at longer-term trends, cyber activity has surged by 134 percent since 2020. The report also recorded a 22 percent rise in insurance claims linked to cyber events. A major driver of these trends is the use of AI-powered tools, particularly deepfake technology, which has led to a 233 percent spike in social engineering-related claims.
Reputational risks are also on the rise, with cyber incidents often attracting significant public attention. On average, companies affected by such events have seen shareholder value losses of around 27 percent.
In India, cyber threats are evolving rapidly in line with increasing enterprise adoption of AI systems. Attackers are using a variety of tactics such as inserting harmful code, hijacking credentials stored on company devices, and targeting cloud-based virtual infrastructure. Once inside a system, they move across network environments to amplify the damage.
Ransom-related attacks remain common. Cybercriminals are demanding payments using stolen data and threatening to leak sensitive information if their demands are not met.
This changing risk landscape has prompted insurers in India to adjust their approach. There is now a greater focus on assessing cybersecurity maturity. While full compliance with security standards is not always required at the outset, insurers are expecting clients to present a clear roadmap that demonstrates their progress in implementing necessary controls.
Across the region, cyber insurance underwriting is becoming more dynamic. Insurers are moving away from rigid checklists and instead focusing on a more flexible assessment of security architecture. Some insurers are now willing to work with businesses that are still building their defences, as long as there is clear evidence of commitment to ongoing improvement.
Commenting on the findings, Prasanna Kumar, who leads cyber solutions in India for the consulting firm, noted that AI adoption brings both opportunity and risk. “We are witnessing India adopt AI at a rapid pace, which brings a host of new risks. Data poisoning attacks can compromise the integrity of critical AI systems and deepfake technology is now being used to craft convincing malicious content – making social engineering attacks more sophisticated than ever,” he said.
He added, “In response to the evolving challenges, businesses must take significant steps to strengthen controls within the organisation. Regular audits, comprehensive employee training programs, and advanced threat monitoring systems must become an integral part of businesses’ security posture.”
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