According to a report by UK-based data security company BugsBounty.com, 72 out of the 100 startups it analysed were negligent in implementing and maintaining reasonable security practices and procedures.
While the report did not name the companies, it said these were across segments like ecommerce, classifieds, finance and fin-tech, healthcare, food-tech and hyperlocal services.
With growing internet penetration and data packs becoming more affordable, consumer-focussed startups have seen business booming. Be it ordering food or furniture online or paying bills, consumers today are much more comfortable making purchases on the web and sharing details like email IDs, address and phone numbers.
Citing Section 43A (Compensation for failure to protect data) of Indian IT Act, the companies may have to shell out as much as Rs 5 crore in case of a data breach. This puts all the data on their server at risk including their software code, databases in entirety among others.
The user receives an email asking them to login to the companys and they comply. However, instead of the company, it is the hacker who receives the username and password. Consumers on their part should ensure that they change their passwords regularly and keep different sets of passwords for critical services like banking and email, and another set for other non-critical services.
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