Digital Arrest Fraud

Isha Sharma

Intern, CyberPeace

PUBLISHED ON

Dec 7, 2023

Introduction

In the rapidly evolving landscape of cyber threats, a novel menace has surfaced the concept of Digital Arrest. The impostors impersonating law enforcement officers deceive the victims into believing that their bank account, SIM card, Aadhaar card, or bank card has been used unlawfully. They coerce victims into paying them money. Digital Arrest involves the virtual restraint of individuals. These suspensions can vary from restricted access to the account(s), and digital platforms, to implementing measures to prevent further digital activities or being restrained on video calling or being monitored through video calling. In the era of digitisation where the technology is growing on an exponential phase, various existing loopholes are being utilised by the wrongdoers which has given rise to this sinister trend known as “digital arrest fraud”. In this scam, the defrauder manipulates the victims, who impersonate law enforcement officials and further traps the victims into a web of deception involving threats of imminent digital restraint and coerced financial transactions.

Recognizing the Danger of Digital Arrest

A recent case involving an interactive voice response (IVR) call that targeted a victim sheds light on the complexities of the "digital arrest" cybercrime. The victim was notified by the scammers—who were pretending to be law enforcement officers—that a SIM card in her name had apparently been utilised in a criminal incident in Mumbai. The call proceeded to a video conversation with an FBI agent who falsely accused her of being involved in money laundering. The victim was forced into a web of dishonesty because she now believed she was involved in a criminal case, underscoring the psychological manipulation these hackers were using.

Recent incidents of digital arrest fraud

Recently, a complaint was registered at the Noida Cyber Crime Police Station made by a 50-year-old victim, who was deceived of over Rs 11 lakh and exposed to "digital arrest". By using the identities of an IPS officer in the CBI and the founder of an airline that was grounded, the attackers, masquerading as law enforcement officers, falsely accused the victim of being involved in a fake money-laundering case. She was told that she had another SIM card in her name that was used for fraudulent activities in Mumbai. The complaint made by the victim asserted “Victim’s call was transferred to a person (who identified himself as a Mumbai Police officer) who conducted the initial interrogation over the call and then on Skype VC, where she stayed from 9:30 AM to around 7 in the evening. The woman ended up transferring around ₹11.11 lakh. The scammers then ended contact with her, after which she realised she had been scammed.
Another recent case of digital arrest fraud came from Faridabad. Where a 23-year-old girl got a call from a fraudster posing as a Lucknow customs officer. The caller said that a package was being shipped to Cambodia that included cards and passports associated with the victim's Aadhaar number. The victim was forced to believe that she was a part of illegal activity, which included trafficking in humans. Under the guise of police officials, the hackers made up allegations before extorting money from the victim. After that, she was told by a man acting as a CBI official that she needed to pay five per cent of the total which was Rs 15 lakh. She said the cybercriminals instructed her not to log off Skype. In the meantime, she ended up transferring Rs 2.5 lakh to a bank account shared by cybercriminals.

Measures to protect oneself from digital arrest

Sustaining a practical and observant approach towards cybersecurity is the key to lowering the peril of being targeted and experiencing digital arrest. Following are certain best practices for ensuring the same:

Cyber Hygiene: This includes maintaining cyber hygiene by regularly updating passwords, and software and also enabling two-factor authentications to reduce the chances of unauthorized access.

Phishing Attempts: These can be evaded by refraining from clicking on dubious links or downloading attachments from unknown sources and also authenticating the legitimacy of emails and messages before sharing any personal information.

Secured devices: By installing reputable antivirus and anti-malware solutions and keeping operating systems and applications up to date with the latest security protocols.

Virtual Private Networks (VPNs): VPNs can be employed to encrypt internet connections thus enhancing privacy and security. However one must be cautious of free VPN services and OTP only for trustworthy providers.

Monitor online services: A regular review of online accounts for any unauthorized or unlawful activities and setting up alerts for any changes to account settings or login attempts may help in the early detection of cybercrime and coping with it.

Secure communication channels: Using secure communication techniques such as encryption can be done for the protection of sensitive information. Sharing of passwords and other information must be cautiously done especially in public forums.

Awareness: The increasing prevalence of cybercrime known as "digital arrest" underscores the need for preventive measures and increased public awareness. Educational initiatives that draw attention to prevalent cyber threats—especially those that include law enforcement impersonation—can enable people to identify and fend off scams of this kind. The collaboration of law enforcement agencies and telecommunication companies can effectively limit the access points used by fraudsters by identifying and blocking susceptible calls.

Conclusion

The rise of Digital Arrest presents a noteworthy and innovative threat to cybersecurity by taking advantage of people's weaknesses through deceitful impersonation and coercive measures. The case in Noida is a prime example of the boldness and skill of cybercriminals who use fear and false information to trick victims into thinking they are in danger of suffering harsh legal repercussions and taking large amounts of money. In order to combat this increasing cybercrime, people need to take a proactive and watchful stance when it comes to cybersecurity. Cyber hygiene techniques, such as two-factor authentication and frequent password changes, are essential for lowering the possibility of unwanted access. Important precautions include being aware of phishing efforts, protecting devices with reliable antivirus software, and using Virtual Private Networks (VPNs) to increase privacy. Cybercriminals and fraudsters often use fear as a powerful tool to manipulate people and exploit their vulnerabilities for illicit gains in the realms of cybercrime and financial fraud. To protect themselves against the sneaky threat of Digital Arrest, netizens must traverse the constantly changing cyber threat landscape with collective knowledge, educated practices, and strong cybersecurity measures.

References:

PUBLISHED ON

Dec 7, 2023

Related Blogs

Role of Cyber Security in the Hospitality Industry

June 24, 2024

Introduction

The hospitality industry is noted to be one of the industries most influenced by technology. Hotels, restaurants, and travel services are increasingly reliant on digital technologies to automate core operations and customer interactions. The shift to electronic modes of conducting business has made the industry a popular target for cyber threats. In light of increasing cyber threats, safeguarding personal and sensitive personal data on the part of the hospitality industry becomes significant not only from a customer standpoint but also from an organisational and legal perspective.

Role of cybersecurity in the hospitality industry

A hospitality industry-based entity (“HI entity”) deploys several technologies not only to automate operations but to also deliver excellent customer experiences. Technologies such as IoTs that enable smart controls in rooms, Point-of-Sale systems that manage reservations, Call Accounting Systems that track and record customer calls, keyless entry systems, and mobile apps that facilitate easy booking and service requests are popularly used in addition to operative technologies such as Property Management Systems, Hotel Accounting Systems, Local Area Networks (LAN).{1} These technologies collect vast volumes of data daily due to the nature of operations. Such data necessarily includes personal information such as names, addresses, phone numbers, email IDs etc. and sensitive information such as gender, bank account and payment details, health information pertaining to food allergens etc. Resultantly, the breach and loss of such critical data impacts customer trust and loyalty and in turn, their retention within the business. Lack of adequate cybersecurity measures also impacts the reputation and goodwill of an HI entity since customers are more likely to opt for establishments that prioritise the protection of their data. In 2022, cybercriminals syphoned 20GB of internal documents and customer data from Marriott Hotels, which included credit card information and staff information such as wage data, corporate card number and even a personnel assessment file. A much larger breach was seen in 2018, where 383 million booking records and 5.3 million unencrypted passport numbers were stolen from Marriott’s servers.{2}

Cybersecurity is also central to safeguarding trade secrets and key confidential trade information. An estimate of US $6 trillion per year on average amounts to losses generated from cybercrimes.{3} The figure, however, does not include the cost of breach, expenses related to incident response, legal fees, regulatory fines etc which may be significantly higher for a HI entity when loss of potential profits is factored in.

Cybersecurity is also central from a legal standpoint. Legal provisions in various jurisdictions mandate the protection of guest data. In India, the Digital Personal Data Protection Act 2023, imposes a penalty of up to Rs. 50 Crores on a breach in observing obligations to take reasonable security safeguards to prevent personal data breach.{4} Similarly, the General Data Protection Regulation (GDPR) of the European Union also has guidelines for protecting personal data. Several other industry-specific rules, such as those pertaining to consumer protection, may also be applicable.

Breaches and Mitigation

There are several kinds of cyber security threats faced by an HI entity. “Fake Booking” is a popular method of cyber attack, whereby attackers build and design a website that is modelled exactly after the hotel’s legitimate website. Many customers end up using such malicious phishing websites thereby exposing their personal and sensitive personal data to threats. Additionally, the provision of free wifi within hotel premises, usually accessible freely to the public, implies that a malicious actor may introduce viruses and updates bearing malware. Other common cyber threats include denial of service (DoS) attacks, supply chain attacks, ransomware threats, SQL injection attacks (a type of attack where malicious code is inserted into a database to manipulate data and gain access to information), buffer overflow or buffer overrun (when the amount of data exceeds its storage capacity, implying that the excess data overflows into other memory locations and corrupt or overwrites data in those locations).

One of the best ways to manage data breaches is to leverage newer technologies that operate on a “privacy by design” model. An HI entity must deploy web application firewalls (WAF) that differ from regular firewalls since they can filter the content of specific web applications and prevent cyber attacks. Another method to safeguard data is by deploying a digital certificate which binds a message/instruction to the owner/generator of the message. This is useful in preventing any false claims fraud by customers. Digital certificates may be deployed on distributed ledger technologies such as blockchain, that are noted for their immutability, transparency and security. Self-sovereign identities or Identifiers (SSI) are also a security use-concept of blockchain whereby individuals own and control their personal data, thereby eliminating reliance on central authorities.{5} In the hospitality industry, SSIs enhance cybersecurity by securely storing identity-related information on a decentralised network, thereby reducing the risk of data breaches. Users can selectively share their information, ensuring privacy and minimising data exposure. This approach not only protects guests' personal details but also streamlines authentication processes, making interactions safer and more efficient.

From a less technical standpoint, cybersecurity insurance may be opted for by a hotel to secure themselves and customer information against breach. Through such insurance, a hotel may cover the liability that arises from breaches caused by both first- and third-party actions.{6} Additionally, Payment Cards Industry Data Security Standards should be adhered to, since these standards ensure that businesses should apply best practices when processing credit card data through optimised security. Employee training and upskilling in basic, practical cybersecurity measures and good practices is also a critical component of a comprehensive cybersecurity strategy.

References:

[1] The Growing Importance of Cybersecurity in the Hospitality Industry”, Alfatec, 11 September 2023 https://www.alfatec.ai/academy/resource-library/the-growing-importance-of-cybersecurity-in-the-hospitality-industry
[2] Vigliarolo, Brandon, “Marriott Hotels admit to third data breach in 4 years”, 6 July 2022 https://www.theregister.com/2022/07/06/marriott_hotels_suffer_yet_another/#:~:text=In%20the%20case%20of%20the,of%20an%20individual%20organization%20ever.

[3] Shabani, Neda & Munir, Arslan. (2020). A Review of Cyber Security Issues in the Hospitality Industry. 10.1007/978-3-030-52243-8_35. https://www.researchgate.net/publication/342683038_A_Review_of_Cyber_Security_Issues_in_Hospitality_Industry/citation/download
[4] The Digital Personal Data Protection Act 2023 https://www.meity.gov.in/writereaddata/files/Digital%20Personal%20Data%20Protection%20Act%202023.pdf
[5] “What is self-sovereign identity?”, Sovrin, 6 December 2018 https://sovrin.org/faq/what-is-self-sovereign-identity/
[6] Yasar, Kinza, “Cyber Insurance”, Tech Target https://www.techtarget.com/searchsecurity/definition/cybersecurity-insurance-cybersecurity-liability-insurance

The efforts of Social Media Platforms to Counter Deepfake

December 23, 2023

A Foray into the Digital Labyrinth

In our digital age, the silhouette of truth is often obfuscated by a fog of technological prowess and cunning deception. With each passing moment, the digital expanse sprawls wider, and within it, synthetic media, known most infamously as 'deepfakes', emerge like phantoms from the machine. These adept forgeries, melding authenticity with fabrication, represent a new frontier in the malleable narrative of understood reality. Grappling with the specter of such virtual deceit, social media behemoths Facebook and YouTube have embarked on a prodigious quest. Their mission? To formulate robust bulwarks around the sanctity of fact and fiction, all the while fostering seamless communication across channels that billions consider an inextricable part of their daily lives.

In an exploration of this digital fortress besieged by illusion, we unpeel the layers of strategy that Facebook and YouTube have unfurled in their bid to stymie the proliferation of these insidious technical marvels. Though each platform approaches the issue through markedly different prisms, a shared undercurrent of necessity and urgency harmonizes their efforts.

The Detailing of Facebook's Strategic

Facebook's encampment against these modern-day chimaeras teems with algorithmic sentinels and human overseers alike—a union of steel and soul. The company’s layer upon layer of sophisticated artificial intelligence is designed to scrupulously survey, identify, and flag potential deepfake content with a precision that borders on the prophetic. Employing advanced AI systems, Facebook endeavours to preempt the chaos sown by manipulated media by detecting even the slightest signs of digital tampering.

However, in an expression of profound acumen, Facebook also serves reminder of AI's fallibility by entwining human discernment into its fabric. Each flagged video wages its battle for existence within the realm of these custodians of reality—individuals entrusted with the hefty responsibility of parsing truth from technologically enabled fiction.

Facebook does not rest on the laurels of established defense mechanisms. The platform is in a perpetual state of flux, with policies and AI models adapting to the serpentine nature of the digital threat landscape. By fostering its cyclical metamorphosis, Facebook not only sharpens its detection tools but also weaves a more resilient protective web, one capable of absorbing the shockwaves of an evolving battlefield.

YouTube’s Overture of Transparency and the Exposition of AI

Turning to the amphitheatre of YouTube, the stage is set for an overt commitment to candour. Against the stark backdrop of deepfake dilemmas, YouTube demands the unveiling of the strings that guide the puppets, insisting on full disclosure whenever AI's invisible hands sculpt the content that engages its diverse viewership.

YouTube's doctrine is straightforward: creators must lift the curtains and reveal any artificial manipulation's role behind the scenes. With clarity as its vanguard, this requirement is not just procedural but an ethical invocation to showcase veracity—a beacon to guide viewers through the murky waters of potential deceit.

The iron fist within the velvet glove of YouTube's policy manifests through a graded punitive protocol. Should a creator falter in disclosing the machine's influence, repercussions follow, ensuring that the ecosystem remains vigilant against hidden manipulation.

But YouTube's policy is one that distinguishes between malevolence and benign use. Artistic endeavours, satirical commentary, and other legitimate expositions are spared the policy's wrath, provided they adhere to the overarching principle of transparency.

The Symbiosis of Technology and Policy in a Morphing Domain

YouTube's commitment to refining its coordination between human insight and computerized examination is unwavering. As AI's role in both the generation and moderation of content deepens, YouTube—which, like a skilled cartographer, must redraw its policies increasingly—traverses this ever-mutating landscape with a proactive stance.

In a Comparative Light: Tracing the Convergence of Giants

Although Facebook and YouTube choreograph their steps to different rhythms, together they compose an intricate dance aimed at nurturing trust and authenticity. Facebook leans into the proactive might of their AI algorithms, reinforced by updates and human interjection, while YouTube wields the virtue of transparency as its sword, cutting through masquerades and empowering its users to partake in storylines that are continually rewritten.

Together on the Stage of Our Digital Epoch

The sum of Facebook and YouTube's policies is integral to the pastiche of our digital experience, a multifarious quilt shielding the sanctum of factuality from the interloping specters of deception. As humanity treads the line between the veracious and the fantastic, these platforms stand as vigilant sentinels, guiding us in our pursuit of an old-age treasure within our novel digital bazaar—the treasure of truth. In this labyrinthine quest, it is not merely about unmasking deceivers but nurturing a wisdom that appreciates the shimmering possibilities—and inherent risks—of our evolving connection with the machine.

Conclusion

The struggle against deepfakes is a complex, many-headed challenge that will necessitate a united front spanning technologists, lawmakers, and the public. In this digital epoch, where the veneer of authenticity is perilously thin, the valiant endeavours of these tech goliaths serve as a lighthouse in a storm-tossed sea. These efforts echo the importance of evergreen vigilance in discerning truth from artfully crafted deception.

References

Meta's Shift to Less Personalized Ads in the EU: Navigating Compliance with the Digital Markets Act and Its Implications

November 16, 2024

Introduction

Personalised advertisements deploy a mechanism that derives from the collection of the user’s data. Although it allows for a more tailored user experience, one cannot ignore the method through which this is achieved. Recently, as per a report by the Indian Express on 13th November 2024, Meta has come up with a less personalised ad option on Facebook and Instagram for its users in the European Union (EU). This was done due to the incompatibility of their previous ad offer with the EU’s Digital Markets Act (DMA).

Relevant Legislation

In October 2023, Meta came up with a “Pay or Consent” option for their users in the EU. It gave the users two options: either to pay a monthly subscription fee to avail of the ad-free usage variant of Facebook and Instagram, or to give consent to see personalised ads based on the user’s data. This consent model was introduced in their attempts to comply with the EU’s DMA. However, this was found to be incompatible with the said mandate, according to the EU regulators, as they believed that the users should not only have the option to consent to ads but also have access to less personalised but equivalent alternatives. It is this decision that pushed Meta to come up with less personalised ad options for users in the EU. The less-personalised ad option claims to rely on limited data and show ads that are only based on the context of what is being viewed i.e. during a Facebook or Instagram session requiring a minimum set of data points such as location, age, gender, and the user’s engagement with the ads. However, choosing this option also allows for such ads to be less skippable.

The EU’s Digital Markets Act came into force on November 1, 2022. The purpose was to make the digital marketing sector fairer and in doing so, identify what they consider to be “Gatekeepers” (core platform services such as messenger services, search engines, and app stores) and a list of do’s and don’ts for them. One of them, applicable to the case mentioned above, is the effective consent required by the user in case the gatekeeper decides to target advertisements enabled by tracking the users' activity outside the gatekeeper's core platform services.

The Indian Context

Although no such issues have been raised in India yet, it is imperative to know that in the Indian context, the DPDP (Digital Personal Data Protection) Act 2023 governs personal data regulation. This includes rules for Data Fiduciaries (those who, alone or in partnership with others, determine the means and purpose of processing personal data), the Data Principal (those who give data), Consent Managers, and even rules regarding processing data of children.

CyberPeace Recommendations:

At the level of the user, one can take steps to ensure limited collection of personal data by following the mentioned steps:

Review Privacy Settings- Reviewing Privacy settings for one’s online accounts and devices is a healthy practice to avoid giving unnecessary information to third-party applications.
Private Browsing- Browsing through private mode or incognito is encouraged, as it prevents websites from tracking your activity and personal data.
Using Ad-blockers- Certain websites have a user option to block ads when the user first visits their page. Availing of this prevents spam advertisements from the respective websites.
Using VPN- Using Virtual Private Networks enables users to hide their IP address and their data to be encrypted, preventing third-party actors from tracking the users' online activities
Other steps include clearing cookies and cache data and using the location-sharing feature with care.

Conclusion

Meta’s compliance with the EU’s DMA signals that social media platforms cannot circumnavigate their way around rules. Balancing the services provided while respecting user privacy is of the utmost importance. The EU has set precedence for a system that respects this and can be used as an example to help set guidelines for how other countries can continue to deal with similar issues and set standards accordingly.

References

‍

Digital Arrest Fraud

Introduction

Recognizing the Danger of Digital Arrest

Recent incidents of digital arrest fraud

Measures to protect oneself from digital arrest

Conclusion

References:

Related Blogs

Introduction

Role of cybersecurity in the hospitality industry

Breaches and Mitigation

References:

A Foray into the Digital Labyrinth

The Detailing of Facebook's Strategic

YouTube’s Overture of Transparency and the Exposition of AI

The Symbiosis of Technology and Policy in a Morphing Domain

In a Comparative Light: Tracing the Convergence of Giants

Together on the Stage of Our Digital Epoch

Conclusion

References

Introduction

Relevant Legislation

The Indian Context

CyberPeace Recommendations:

Conclusion

References

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