AU Bank hit by a likely breach of 'limited' data

Mumbai: AU Small Finance Bank, which on Friday reported a likely breach of customer data involving a third-party software platform, is expected to see only a minimal financial impact due to a dedicated 100-crore cyber insurance cover from New India Assurance, people aware of the development told ET.The lender is investigating a potential breach of "limited data" pertaining to its vehicle-loan customers. The data was hosted on a third-party software platform operated by Salesforce.Also Read: FCNR bounty in Q2 masks bank issues in growing depositsThe bank's regulatory disclosure about the breach and subsequent probe points to a possible compromise at a third-party technology platform rather than within its core banking infrastructure. The lender did not disclose the nature or volume of customer information potentially exposed, the number of customers affected, or whether any financial data was involved.AU has not yet informed its insurer about the incident, according to people familiar with the matter. The extent of the potential data exposure and the number of customers affected have yet to be established.Also Read: Binance’s $6.3B crypto heist: Who’s behind it?However, the adequacy of the 100-crore cover will depend on the extent of the data compromised and the findings of forensic investigations, which will determine the potential liabilities, according to an insurance industry executive.Cyber insurance policies cover a range of expenses, including forensic investigations, business interruption, public relations, legal costs and data-related liabilities. They may also cover regulatory fines and fund-transfer losses, subject to policy terms and exclusions.Cyber-intelligence platform Hackmanac said the ScarlettGroup hacking group has claimed to have breached AU Small Finance Bank and threatened to leak customer and internal corporate data.