Deepfake Scams

Introduction

The Digital Personal Data Protection (DPDP) Act, of 2023, introduces a framework for the protection of personal data in India. Data fiduciaries are the entity that essentially determines the purpose and means of processing of personal data. The small-scale industries also fall within the ambit of the term. Startups/Small companies and Micro, Small, and Medium Enterprises (MSMEs) while determining the purpose of processing of personal data in the capacity of ‘data fiduciary’ are also required to comply with the DPDP Act provisions. The obligations set for the data fiduciary will apply to them unilaterally, though compliance with this Act and can be challenging due to resource constraints and limited expertise in data protection. 

DPDP Act, 2023 Section 17(3) gives power to the Central Government to exempt Startups from being obligated to comply with the Act, taking into account the volume and nature of personal data processed. It is the nation's first standalone law on data protection and privacy, which sets forth strict rules on how data fiduciaries can collect and process personal data, focusing on consent-based mechanisms and personal data protection. Small-scale industries are given more time to comply with the DPDP Act. The detailed provisions to be notified in further rulemaking called ‘DPDP rules’.

Obligations on Data Fiduciary under the DPDP Act, 2023

The DPDP Act focuses on processing digital personal data in a manner that recognizes both the right of individuals to protect their personal data and the need to process such personal data for lawful purposes and for matters connected therewith or incidental thereto. Hence, small-scale industries also need to comply with provisions aimed at protecting digital personal data.

The key requirements to be considered:

• Data Processing Principles: Ensuring that data processing is done lawfully, fairly, and transparently. Further, the collection and processing of personal data is only for specific, clear, and legitimate purposes and only the data necessary for the stated purpose. Ensuring that the data is accurate and up to date is also necessary. An important part is that the data is not retained longer than necessary and appropriate security measures are taken to protect the said data.
• Consent Management: Clear and informed consent should be obtained from individuals before collecting their personal data. Further, individuals have the option to withdraw their consent easily.
• Rights of Data Principals: Data principals (individuals) whose data is being collected have the right to Information, the right to correction and erasure of data, the right to grievance redressa, Right to nominate.the right to access, correct, and delete their personal data. Data fiduciaries need to be mindful of mechanisms to handle requests from data principals regarding their concerns.
• Data Breach Notifications: Data fiduciaries are required to notify the data protection board and the affected individuals in case a data breach has occurred.
• Appropriate technical and organisational measures: A Data Fiduciary shall implement appropriate technical and organisational measures to ensure effective observance of the provisions of this Act and the rules made thereunder.Cross-border Data Transfers: Compliance with regulations in relation to the transfer of personal data outside of India should be ensured.

Challenges for Small Scale Industries for the DPDP Act Compliance 

While small-scale industries have high aims for their organisational growth and now in the digital age they also need to place reliance on online security measures and handling of personal data, with the DPDP act in the picture it becomes an obligation to consider and comply with. As small-scale industries including MSMEs, they might face certain challenges in fulfilling these obligations but digital data protection measures will also boost the competitive market and customer growth in their business. Bringing reforms in methods aimed at better data governance in today's digital era is significant. 

One of the major challenges for small-scale industries could be ensuring a skilled workforce that understands and educates internal stakeholders about the DPDP Act compliances. This could undoubtedly become an additional burden.

Further, the limited resources can make the implementation of data protection, which is oftentimes complex for a layperson in the case of a small-scale industry, difficult to implement. Limitations in resources are often financial or human resources.

Cybersecurity, cyber awareness, and protection from cyber threats need some form of expertise, which is lacking in small enterprises. The outsourcing of such expertise is a decision that is sometimes taken too late, and some form of harm can take place between the periods by which an incident can occur.

Investment in the core business or enterprise many times doesn't include technology other than the basic requirements to run the business, nor towards ensuring that the data is secure and all compliances are met. However, in the fast-moving digital world, all industries need to be mindful of their efforts to protect personal data and proper data governance.

Recommendations 

To ensure the proper and effective personal data handling practices as per the provisions of the act, the small companies/startups need to work backend and frontend and ensure that they take adequate measures to comply with the act. While such industries have been given more time to ensure compliance, there are some suggestions for them to be compliant with the new law.

Small companies can ensure compliance with the DPDP Act by implementing robust data protection policies, investing in and providing employee training on data privacy, using age-verification mechanisms, and adopting privacy-by-design principles. Conduct a gap analysis to identify areas where current practices fall short of DPDP Act requirements. Regular audits, secure data storage solutions, and transparent communication with users about data practices are also essential. Use cost-effective tools and technologies for data protection and management.

Conclusion

Small-scale industries must take proactive steps to align with the DPDP Act, 2023 provisions. By understanding the requirements, leveraging external expertise, and adopting best practices, small-scale industries can ensure compliance and protect personal data effectively. In the long run, complying with the new law would lead to greater trust and better business for the enterprises, resulting in a larger revenue share for them.

References

• https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1959161 
• https://www.financialexpress.com/business/digital-transformation-dpdp-act-managing-data-protection-compliance-in-businesses-3305293/ 
• https://economictimes.indiatimes.com/tech/technology/big-tech-coalition-seeks-12-18-month-extension-to-comply-with-indias-dpdp-act/articleshow/104726843.cms?from=mdr 

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Introduction

Criminal justice in India is majorly governed by three laws which are – Indian Penal Code, Criminal Procedure Code and Indian Evidence Act. The centre, on 11th August 2023’ Friday, proposes a new bill in parliament Friday, which is replacing the country’s major criminal laws, i.e. Indian Penal Code, Criminal Procedure Code and Indian Evidence Act.

The following three bills are being proposed to replace major criminal laws in the country:

• The Bharatiya Nyaya Sanhita Bill, 2023 to replace Indian Penal Code 1860.
• The Bharatiya Nagrik Suraksha Sanhita Bill, 2023, to replace The Code Of Criminal Procedure, 1973.
• The Bharatiya Sakshya Bill, 2023, to replace The Indian Evidence Act 1872.

Cyber law-oriented view of the new shift in criminal lawNotable changes:Bharatiya Nyaya Sanhita Bill, 2023  Indian Penal Code 1860.

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‍Way ahead for digitalisation

‍The new laws aim to enhance the utilisation of digital services in court systems, it facilitates online registration of FIR, Online filing of the charge sheet,  serving summons in electronic mode, trial and proceedings in electronic mode etc.  The new bills also allow the virtual appearance of witnesses, accused, experts, and victims in some instances. This shift will lead to the adoption of technology in courts and all courts to be computerised in the upcoming time.

‍Enhanced recognition of electronic records

‍With the change in lifestyle in terms of the digital sphere, significance is given to recognising electronic records as equal to paper records.

‍Conclusion

‍The criminal laws of the country play a significant role in establishing law & order and providing justice. The criminal laws of India were the old laws existing under British rule. There have been several amendments to criminal laws to deal with the growing crimes and new aspects. However, there was a need for well-established criminal laws which are in accordance with the present era. The step of the legislature by centralising all criminal laws in their new form and introducing three bills is a good approach which will ultimately strengthen the criminal justice system in India, and it will also facilitate the use of technology in the court system.

Introduction

On the precipice of a new domain of existence, the metaverse emerges as a digital cosmos, an expanse where the horizon is not sky, but a limitless scope for innovation and imagination. It is a sophisticated fabric woven from the threads of social interaction, leisure, and an accelerated pace of technological progression. This new reality, a virtual landscape stretching beyond the mundane encumbrances of terrestrial life, heralds an evolutionary leap where the laws of physics yield to the boundless potential inherent in our creativity. Yet, the dawn of such a frontier does not escape the spectre of an age-old adversary—financial crime—the shadow that grows in tandem with newfound opportunity, seeping into the metaverse, where crypto-assets are no longer just an alternative but the currency du jour, dazzling beacons for both legitimate pioneers and shades of illicit intent.

The metaverse, by virtue of its design, is a canvas for the digital repaint of society—a three-dimensional realm where the lines between immersive experiences and entertainment blur, intertwining with surreal intimacy within this virtual microcosm. Donning headsets like armor against the banal, individuals become avatars; digital proxies that acquire the ability to move, speak, and perform an array of actions with an ease unattainable in the physical world. Within this alternative reality, users navigate digital topographies, with experiences ranging from shopping in pixelated arcades to collaborating in virtual offices; from witnessing concerts that defy sensory limitations to constructing abodes and palaces from mere codes and clicks—an act of creation no longer beholden to physicality but to the breadth of one's ingenuity.

The Crypto Assets

The lifeblood of this virtual economy pulsates through crypto-assets. These digital tokens represent value or rights held on distributed ledgers—a technology like blockchain, which serves as both a vault and a transparent tapestry, chronicling the pathways of each digital asset. To hop onto the carousel of this economy requires a digital wallet—a storeroom and a gateway for acquisition and trade of these virtual valuables. Cryptocurrencies, with NFTs—Non-fungible Tokens—have accelerated from obscure digital curios to precious artifacts. According to blockchain analytics firm Elliptic, an astonishing figure surpassing US$100 million in NFTs were usurped between July 2021 and July 2022. This rampant heist underlines their captivating allure for virtual certificates. Empowers do not just capture art, music, and gaming, but embody their very soul.

Yet, as the metaverse burgeons, so does the complexity and diversity of financial transgressions. From phishing to sophisticated fraud schemes, criminals craft insidious simulacrums of legitimate havens, aiming to drain the crypto-assets of the unwary. In the preceding year, a daunting figure rose to prominence—the vanishing of US$14 billion worth of crypto-assets, lost to the abyss of deception and duplicity. Hence, social engineering emerges from the shadows, a sort of digital chicanery that preys not upon weaknesses of the system, but upon the psychological vulnerabilities of its users—scammers adorned in the guise of authenticity, extracting trust and assets with Machiavellian precision.

The New Wave of Fincrimes 

Extending their tentacles further, perpetrators of cybercrime exploit code vulnerabilities, engage in wash trading, obscuring the trails of money laundering, meander through sanctions evasion, and even dare to fund activities that send ripples of terror across the physical and virtual divide. The intricacies of smart contracts and the decentralized nature of these worlds, designed to be bastions of innovation, morph into paths paved for misuse and exploitation. The openness of blockchain transactions, the transparency that should act as a deterrent, becomes a paradox, a double-edged sword for the law enforcement agencies tasked with delineating the networks of faceless adversaries.

Addressing financial crime in the metaverse is Herculean labour, requiring an orchestra of efforts—harmonious, synchronised—from individual users to mammoth corporations, from astute policymakers to vigilant law enforcement bodies. Users must furnish themselves with critical awareness, fortifying their minds against the siren calls that beckon impetuous decisions, spurred by the anxiety of falling behind. Enterprises, the architects and custodians of this digital realm, are impelled to collaborate with security specialists, to probe their constructs for weak seams, and to reinforce their bulwarks against the sieges of cyber onslaughts. Policymakers venture onto the tightrope walk, balancing the impetus for innovation against the gravitas of robust safeguards—a conundrum played out on the global stage, as epitomised by the European Union's strides to forge cohesive frameworks to safeguard this new vessel of human endeavour.

The Austrian Example 

Consider the case of Austria, where the tapestry of laws entwining crypto-assets spans a gamut of criminal offences, from data breaches to the complex webs of money laundering and the financing of dark enterprises. Users and corporations alike must become cartographers of local legislation, charting their ventures and vigilances within the volatile seas of the metaverse.

Upon the sands of this virtual frontier, we must not forget: that the metaverse is more than a hive of bits and bandwidth. It crystallises our collective dreams, echoes our unspoken fears, and reflects the range of our ambitions and failings. It stands as a citadel where the ever-evolving quest for progress should never stray from the compass of ethical pursuit. The cross-pollination of best practices, and the solidarity of international collaboration, are not simply tactics—they are imperatives engraved with the moral codes of stewardship, guiding us to preserve the unblemished spirit of the metaverse.

Conclusion

The clarion call of the metaverse invites us to venture into its boundless expanse, to savour its gifts of connection and innovation. Yet, on this odyssey through the pixelated constellations, we harness vigilance as our star chart, mindful of the mirage of morality that can obfuscate and lead astray. In our collective pursuit to curtail financial crime, we deploy our most formidable resource—our unity—conjuring a bastion for human ingenuity and integrity. In this, we ensure that the metaverse remains a beacon of awe, safeguarded against the shadows of transgression, and celebrated as a testament to our shared aspiration to venture beyond the realm of the possible, into the extraordinary.

References 

• https://www.wolftheiss.com/insights/financial-crime-in-the-metaverse-is-real/ 
• https://gnet-research.org/2023/08/16/meta-terror-the-threats-and-challenges-of-the-metaverse/
• https://shuftipro.com/blog/the-rising-concern-of-financial-crimes-in-the-metaverse-aml-screening-as-a-solution/

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