#FactCheck - Digitally Altered Video of Olympic Medalist, Arshad Nadeem’s Independence Day Message

Overview:

WazirX is the platform for cryptocurrencies, based in India that has been hacked, and it made a loss of more than $230 million in cryptocurrency. This case concerned an unauthorized transaction with a multisignature or multisig, wallet controlled through Liminal’a digital asset management platform. These attacking incidents have thereafter raised more questions on the security of the Cryptocurrency exchanges and efficiency of the existing policies and laws.

Wallet Configuration and Security Measures

This wallet was breached and had a multisig setting meaning that more than one signature was needed to authorize a transaction. Specifically, it had six signatories: five are funded by WazirX and one is funded by Liminal. Every transaction needed the approval of at least three signatories of WazirX, all of whom had addressed security concerns by using Ledger’s hardware wallets; while the Liminal, too, had a signatory, for approval.

To further increase the level of security of the transactions, a whitelisting policy was introduced, only limited addresses were authorized to receive funds. This system was rather vulnerable, and the attackers managed to grasp the discrepancy between the information available through Liminal’s interface and the content of the transaction to seize unauthorized control over the wallet and implement the theft.

Modus Operandi: Attack Mechanics

The cyber attack appears to have been carefully carried out, with preliminary investigations suggesting the following tactics: 

• Payload Manipulation: The attackers apparently substituted the transaction’s payload during signing; hence, they can reroute the collected funds into an unrelated wallet. 

• Chain Hopping: To make it much harder to track their movements, the attackers split large amounts of money across multiple blockchains and broke tens of thousands of dollars into thousands of transactions involving different cryptocurrencies. This technique makes it difficult to trace people and things. 

• Zero Balance Transactions: There were also some instances where it ended up with no Ethereum (ETH) in the balance and such wallets also in use for the purpose of further anonymization of the transactions.

• Analysis of the blockchain data suggested the enemy might have been making the preparations for this attack for several days prior to their attack and involved a high amount of planning. 

Actions taken by WazirX:

Following the attack, WazirX implemented a series of immediate actions:

• User Notifications: The users were immediately notified of the occurrence of the breach and the possible risk it posed to them. 

• Law Enforcement Engagement: The matters were reported to the National Cyber Crime Reporting Portal and specific authorities of which the Financial Intelligence Unit (FIU) and the Computer Emergency Response Team (CERT-In). 

• Service Suspension: WazirX had suspended all its trading operations and user deposits’ and withdrawals’ to minimize further cases and investigate. 

• Global Outreach: The exchange contacted more than 500 cryptocurrency exchanges and requested to blacklist the wallet’s addresses linked to the theft. 

• Bounty Program: A bounty program was announced to encourage people to share information that can enable the authorities to retrieve the stolen money. A maximum of 23 million dollars was placed on the bounty. 

Further  Investigations 

WazirX stated that it has contracted the services of cybersecurity professionals to help in the prosecution process of identifying and compensating for the losses. The exchange is still investigating the forensic data and working with the police for tracking the stolen assets. Nevertheless, the prospects of full recovery may be quite questionable primarily because of complexity of the attack and the methods used by the attackers. 

Precautionary measures: 

 The WazirX cyber attack clearly implies that there is the necessity to improve the security and the regulation of the cryptocurrency industry. As exchanges become increasingly targeted by hackers, there is a pressing need for: 

• Stricter Security Protocols: The commitment to technical innovations, such as integration of MFA, as well as constant monitoring of the users’ wallets’ activities. 

• Regulatory Oversight: Formalization of the laws that require proper security for the cryptocurrency exchange platforms to safeguard their users as well as their investments. 

• Community Awareness: To bypass such predicaments, there is a need to study on emergent techniques in spreading awareness, particularly in cases of scams or phishing attempts that are likely to follow such breaches. 

Conclusion:

The cyber attack on WazirX in the field of cryptocurrency market, shows weaknesses and provides valuable lessons for enhancing the security.  This attack highlights critical vulnerabilities in cryptocurrency exchanges, even though employing advanced security measures like multisignature wallets and whitelisting policies. The attack's complexity, involving payload manipulation, chain hopping, and zero balance transactions, underscores the attackers' meticulous planning and the challenges in tracing stolen assets. This case brings a strong message regarding the necessity of solid security measures, and constant attention to security in the rapidly growing world of digital assets. Furthermore, the incident highlights the importance of community awareness and education on emerging threats like scams and phishing attempts, which usually follow such breaches. By fostering a culture of vigilance and knowledge, the cryptocurrency community can better defend against future attacks.

Reference:

https://wazirx.com/blog/important-update-cyber-attack-incident-and-measures-to-protect-your-assets/

https://www.moneycontrol.com/news/opinion/the-230-million-crypto-theft-at-wazirx-is-a-wake-up-call-for-indian-regulators-government-12772563.html

https://www.linkedin.com/pulse/wazirx-cyberattack-in-depth-analysis-jyqxf

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Introduction

In September 2024, the Australian government announced the  Communications Legislation Amendment (Combatting Misinformation and Disinformation) Bill 2024 ( CLA Bill 2024 hereon), to provide new powers to the Australian Communications and Media Authority (ACMA), the statutory regulatory body for Australia's communications and media infrastructure, to combat online misinformation and disinformation. It proposed allowing the ACMA to hold digital platforms accountable for the “seriously harmful mis- and disinformation” being spread on their platforms and their response to it, while also balancing freedom of expression. However, the Bill was subsequently withdrawn, primarily over concerns regarding the possibility of censorship by the government. This development is reflective of the global contention on the balance between misinformation regulation and freedom of speech. 

Background and Key Features of the Bill

According to the BBC’s Global Minds Survey of 2023, nearly 73% of Australians struggled to identify fake news and AI-generated misinformation. There has been a substantial rise in misinformation on platforms like Facebook, Twitter, and TikTok since the COVID-19 pandemic, especially during major events like the bushfires of 2020 and the 2022 federal elections. The government’s campaign against misinformation was launched against this background, with the launch of The Australian Code of Practice on Disinformation and Misinformation in 2021. The main provisions of the CLA Bill, 2024 were: 

1. Core Transparency Obligations of Digital Media Platforms: Publishing current media literacy plans,  risk assessment reports, and policies or information on their approach to addressing mis- and disinformation. The ACMA would also be allowed to make additional rules regarding complaints and dispute-handling processes.
2. Information Gathering and Record-Keeping Powers: The ACMA would form rules allowing it to gather consistent information across platforms and publish it. However, it would not have been empowered to gather and publish user information except in limited circumstances.
3. Approving Codes and Making Standards: The ACMA would have powers to approve codes developed by the industry and make standards regarding reporting tools, links to authoritative information, support for fact-checking, and demonetisation of disinformation. This would make compliance mandatory for relevant sections of the industry. 
4. Parliamentary Oversight: The transparency obligations, codes approved and standards set by ACMA under the Bill would be subject to parliamentary scrutiny and disallowance. ACMA would be required to report to the Parliament annually. 
5. Freedom of Speech Protections: End-users would not be required to produce information for ACMA unless they are a person providing services to the platform, such as its employees or fact-checkers. Further,  it would not be allowed to call for removing content from platforms unless it involved inauthentic behavior such as bots. 
6. Penalties for Non-Compliance: ACMA would be required to employ a “graduated, proportionate and risk-based approach” to non-compliance and enforcement in the form of formal warnings, remedial directions, injunctions, or significant civil penalties as decided by the courts, subject to review by the Administrative Review Tribunal (ART). No criminal penalties would be imposed.

Key Concerns

• Inadequacy of Freedom of Speech Protections: The biggest contention on this Bill has been regarding the issue of possible censorship, particularly of alternative opinions that are crucial to the health of a democratic system. To protect the freedom of speech, the Bill defined mis- and disinformation, what constitutes “serious harm” (election interference, harming public health, etc.), and what would be excluded from its scope. However, reservations among the Opposition persisted due to the lack of a clear mechanism to protect divergent opinions from the purview of this Bill. 
• Efficacy of Regulatory Measures: Many argue that by allowing the digital platform industry to make its codes, this law lets it self-police. Big Tech companies have no incentive to curb misinformation effectively since their business models allow them to reap financial benefits from the rampant spread of misinformation. Unless there are financial non- or dis- incentives to curb misinformation, Big Tech is not likely to address the situation at war footing.  Thus, this law would run the risk of being toothless. Secondly, the Bill did not require platforms to report on the “prevalence of” false content which, along with other metrics,  is crucial for researchers and legislators to track the efficacy of the current misinformation-curbing practices employed by platforms.  
• Threat of Government Overreach:  The Bill sought to expand the ACMA’s compliance and enforcement powers concerning misinformation and disinformation on online communication platforms by giving it powers to form rules on information gathering, code registration, standard-making powers, and core transparency obligations. However, even though the ACMA as a regulatory authority is answerable to the Parliament, the Bill was unclear in defining limits to these powers. This raised concerns from civil society about potential government overreach in a domain filled with contextual ambiguities regarding information.

Conclusion

While the Communications Legislation Amendment (Combatting Misinformation and Disinformation) Bill sought to equip the ACMA with tools to hold digital platforms accountable and mitigate the harm caused by false information, its critique highlights the complexities of regulating such content without infringing on freedom of speech. Legislations and proposals regarding the matter all over the world are having to contend with this challenge. Globally, legislation and proposals addressing this issue face similar challenges, emphasizing the need for a continuous discourse at the intersection of platform accountability, regulatory restraint, and the protection of diverse viewpoints.

To regulate Big Tech effectively, governments can benefit from adopting a consultative, incremental, and cooperative approach, as exemplified by the European Union’s Digital Services Act 2023. Such a framework provides for a balanced response, fostering accountability while safeguarding democratic freedoms.

Resources

• https://www.infrastructure.gov.au/sites/default/files/documents/factsheet-misinformation-disinformation-bill.pdf 
• https://www.infrastructure.gov.au/have-your-say/new-acma-powers-combat-misinformation-and-disinformation 
• https://www.mi-3.com.au/07-02-2024/over-80-australians-feel-they-may-have-fallen-fake-news-says-bbc 
• https://www.hrlc.org.au/news/misinformation-inquiry 
• https://humanrights.gov.au/our-work/legal/submission/combatting-misinformation-and-disinformation-bill-2024 
• https://www.sbs.com.au/news/article/what-is-the-misinformation-bill-and-why-has-it-triggered-worries-about-freedom-of-speech/4n3ijebde 
• https://www.hrw.org/report/2023/06/14/no-internet-means-no-work-no-pay-no-food/internet-shutdowns-deny-access-basic#:~:text=The%20Telegraph%20Act%20allows%20authorities,preventing%20incitement%20to%20the%20commission 
• https://www.hrlc.org.au/submissions/2024/11/8/submission-combatting-misinformation?utm_medium=email&utm_campaign=Media%20Release%20Senate%20Committee%20to%20hear%20evidence%20calling%20for%20Albanese%20Government%20to%20regulate%20and%20hold%20big%20tech%20accountable%20for%20misinformation&utm_content=Media%20Release%20Senate%20Committee%20to%20hear%20evidence%20calling%20for%20Albanese%20Government%20to%20regulate%20and%20hold%20big%20tech%20accountable%20for%20misinformation+Preview+CID_31c6d7200ed9bd2f7f6f596ba2a8b1fb&utm_source=Email%20campaign&utm_term=Read%20the%20Human%20Rights%20Law%20Centres%20submission%20to%20the%20inquiry

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Introduction

WhatsApp has become the new platform for scams, and the number of cases of WhatsApp scams is increasing daily. Just like that, a new WhatsApp scam has been started, and many WhatsApp users in India have reported receiving missed calls from unknown international numbers. Worse, one does not even have to answer the call to be scammed. A missed call is sufficient to be scammed.

Millions of populations switch from normal SMS to WhatsApp, usually, people used to get fake messages and marketing messages, but the trend of scamming has been evolving now.  Most people get calls from different countries, and they are concerned about how these scammers got the numbers. WhatsApp works through VoIP networks, so no extra charges from any country exist. And about 500 million WhatsApp users are getting these scam calls, the calls are mainly on job-scams of promising part-time employment and opportunities. These types of job scam calls have been started reporting in 2023.

People reporting missed calls from countries like Ethiopia (+251), Malaysia (+60), Indonesia (+62), Vietnam (+84), etc.

The agenda of these calls are still unclear. Still, in some cases, the scammers ask for confidential information from WhatsApp users, like bank details, so the users must not reveal their personal information. Also, it is important to note that if you get any calls from a particular country, it necessarily does not mean it is from that country. Various agencies sell international numbers for WhatsApp calls.

Why has WhatsApp become a hub scam?

The generation has evolved and dumped the old SMS into WhatsApp. From school to college and offices, people use WhatsApp for their official work, as it is very easy and user-friendly, so people avoid safety measures. Generally, users need to understand the consequences of technology and use it with safeguards and awareness. Many people lose money and become victims of scams on WhatsApp as they share their confidential information. And the worse is that one does not even have to answer the call to be scammed. A missed call is sufficient to be scammed.

Before these international calls scam, the user received a call from the scam that they were from KBC, and the user won something. Then sought confidential information by the excuse that they would transfer the money to the user, and because of that user got scammed by the scammers. These scams have risen rapidly lately.

Safeguards users can use against these scam calls

WhatsApp responds to complaints regarding international calls to “block and report.”

If you have already received such calls, the best thing you can do is report and block them right away. As a result, the same number does not return to your phone, and numerous identical reports may persuade WhatsApp to delete the number entirely.

WhatsApp is also working on an update allowing users to block calls from unknown numbers on the service.

Users must modify their phone’s and app’s fundamental privacy settings to protect themselves from data breaches. The calls are directed toward app users who are actively using the app. However, by modifying the account’s appearance, a user can lessen the likelihood of being added to the scammers’ attack lists.

Limit Privacy

Begin by modifying WhatsApp’s ‘who can see’ settings. If your profile photo, last seen, and online status are visible to anybody, restrict them to persons on your contact list only. Change the About and Groups options as well.

Turn on two-factor authentication

Enabling two-factor authentication on WhatsApp adds more security to your data. In addition, the app also supports biometric protection in case of theft or loss.

Active Reporting

The users should report as soon as they see something odd or suspicious activity.

A typical question that users have is, ‘Where do the scammers acquire my phone number from?’

The answer is a little more complicated than we thought. Your data is retained on the company database from the time you sign up on a website or reveal your phone number at a store in order to take advantage of promotional offers and promotions. Due to a lack of technological infrastructure and legislation to protect personal data, a scammer can simply obtain your information.

According to Palo Alto research, India is the second most vulnerable country in the APAC region in terms of cyberattacks and data breaches. A data protection law is essential in the face of increasing calls and data breaches.

The Digital Personal Data Protection bill is set to be introduced in the parliament’s monsoon session. The bill has the potential to protect data, which will help to eliminate scams.

Conclusion

Several people had tweeted on tweeter about receiving fake calls on WhatsApp from international numbers more than once. WhatsApp encrypts calls and messages, making it difficult to track the person, and it appears that hackers are taking advantage of this to swindle customers. If you receive a WhatsApp call from any of the above ISD codes, we strongly advise you not to answer it and to block the number so the bad actors do not call you again. Report & block immediately that’s what WhatsApp has been responding to the complainants.