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

Introduction

Since the inception of the Internet and social media platforms like Facebook, X (Twitter), Instagram, etc., the government and various other stakeholders in both foreign jurisdictions and India have looked towards the intermediaries to assume responsibility for the content floated on these platforms, and various legal provisions showcase that responsibility. For the first time in many years, these intermediaries come together to moderate the content by setting a standard for the creators and propagators of this content. The influencer marketing industry in India is at a crucial juncture, with its market value projected to exceed Rs. 3,375 crore by 2026. But every industry is coupled with its complications; like in this scenario, there is a section of content creators who fail to maintain the standard of integrity and propagate content that raises concerns of authenticity and transparency, often violating intellectual property rights (IPR) and privacy. 

As influencer marketing continues to shape digital consumption, the need for ethical and transparent content grows stronger. To address this, the India Influencer Governing Council (IIGC) has released its Code of Standards, aiming to bring accountability and structure to the fast-evolving online space.

Bringing Accountability to the Digital Fame Game

The India Influencer Governing Council (IIGC), established on 15th February, 2025, is founded with the objective to empower creators, advocate for fair policies, and promote responsible content creation. The IIGC releases the Code of Standard, not a moment too soon; it arrives just in time, a necessary safeguard before social media devolves into a chaotic marketplace where anything and everything is up for grabs. Without effective regulation, digital platforms become the marketplace for misinformation and exploitation. 

The IIGC leads the movement with clarity, stating that the Code is a significant piece that spans across 20 crucial sections governing key areas such as paid partnership disclosures, AI-generated personas, content safety, and financial compliance. 

Highlights from the Code of Standard

• The Code exhibits a technical understanding of the industry of content creation and influencer marketing. The preliminary sections advocate for accuracy, transparency, and maintaining credibility with the audience that engages with the content. Secondly, the most fundamental development is with regard to the “Paid Partnership Disclosure” included in Section 2 of the Code that mandates disclosure of any material connection, such as financial agreements or collaboration with the brand.
• Another development, which potently comes at a befitting hour, is the disclosure of “AI Influencers”, which establishes that the nature of the influencer has to be disclosed, and such influencers, whether fully virtual or partially AI-enhanced, must maintain the same standards as any human influencer. 
• The code ranges across various other aspects of influencer marketing, such as expressing unpaid “Admiration” for the brand and public criticism of the brand, being free from personal bias, honouring financial agreements, non-discrimination, and various other standards that set the stage for a safe and fair digital sphere. 
• The Code also necessitates that the platform users and the influencers handle sexual and sensitive content with sincere deliberation, and usage of such content shall be for educational and health-related contexts and must not be used against community standards. The Code includes various other standards that work towards making digital platforms safer for younger generations and impressionable minds. 

A Code Without Claws? Challenges in Enforcement 

The biggest obstacle to the effective implementation of the code is distinguishing between an honest promotion and a paid brand collaboration without any explicit mention of such an agreement. This makes influencer marketing susceptible to manipulation, and the manipulation cannot be tackled with a straitjacket formula, as it might be found in the form of exaggerated claims or omission of critical information.  

Another hurdle is the voluntary compliance of the influencers with the advertising standards. Influencer marketing is an exercise in a borderless digital cyberspace, where the influencers often disregard the dignified standards to maximise their earnings and commercial motives. 

The debate between self-regulation and government oversight is constantly churning, where experience tells us that overreliance on self-regulation has proven to be inadequate, and succinct regulatory oversight is imperative in light of social media platforms operating as a transnational commercial marketplace. 

CyberPeace Recommendations

• Introduction of a licensing framework for influencers that fall into the “highly followed” category with high engagement, who are more likely to shape the audience’s views. 
• Usage of technology to align ethical standards with influencer marketing practices, ensuring that misleading advertisements do not find a platform to deceive innocent individuals.
• Educating the audience or consumers on the internet about the ramifications of negligence and their rights in the digital marketplace. Ensuring a well-established grievance redressal mechanism via digital regulatory bodies. 
• Continuous and consistent collaboration and cooperation between influencers, brands, regulators, and consumers to establish an understanding and foster transparency and a unified objective to curb deceptive advertising practices. 

References

• https://iigc.org/code-of-standards/influencers/code-of-standards-v1-april.pdf
• https://legalonus.com/the-impact-of-influencer-marketing-on-consumer-rights-and-false-advertising/
• https://exhibit.social/news/india-influencer-governing-council-iigc-launched-to-shape-the-future-of-influencer-marketing/

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Introduction

Phishing as a Service (PhaaS) platform 'LabHost' has been a significant player in cybercrime targeting North American banks, particularly financial institutes in Canada. LabHost offers turnkey phishing kits, infrastructure for hosting pages, email content generation, and campaign overview services to cybercriminals in exchange for a monthly subscription. The platform's popularity surged after introducing custom phishing kits for Canadian banks in the first half of 2023.Fortra reports that LabHost has overtaken Frappo, cybercriminals' previous favorite PhaaS platform, and is now the primary driving force behind most phishing attacks targeting Canadian bank customers.

In the digital realm, where the barriers to entry for nefarious activities are crumbling, and the tools of the trade are being packaged and sold with the same customer service one might expect from a legitimate software company. This is the world of Phishing-as-a-Service (PhaaS), and at the forefront of this ominous trend is LabHost, a platform that has been instrumental in escalating attacks on North American banks, with a particular focus on Canadian financial institutions.

LabHost is not a newcomer to the cybercrime scene, but its ascent to infamy was catalyzed by the introduction of custom phishing kits tailored for Canadian banks in the first half of 2023. The platform operates on a subscription model, offering turnkey solutions that include phishing kits, infrastructure for hosting malicious pages, email content generation, and campaign overview services. For a monthly fee, cybercriminals are handed the keys to a kingdom of deception and theft.

Emergence of Labhost

The rise of LabHost has been meticulously chronicled by various cyber security firms which reports that LabHost has dethroned the previously favored PhaaS platform, Frappo. LabHost has become the primary driving force behind the majority of phishing attacks targeting customers of Canadian banks. Despite suffering a disruptive outage in early October 2023, LabHost has rebounded with vigor, orchestrating several hundreds of attacks per month.

Their investigation into LabHost's operations reveals a tiered membership system: Standard, Premium, and World, with monthly fees of $179, $249, and $300, respectively. Each tier offers an escalating scope of targets, from Canadian banks to 70 institutions worldwide, excluding North America. The phishing templates provided by LabHost are not limited to financial entities; they also encompass online services like Spotify, postal delivery services like DHL, and regional telecommunication service providers.

LabRat

The true ingenuity of LabHost lies in its integration with 'LabRat,' a real-time phishing management tool that enables cybercriminals to monitor and control an active phishing attack. This tool is a linchpin in man-in-the-middle style attacks, designed to capture two-factor authentication codes, validate credentials, and bypass additional security measures. In essence, LabRat is the puppeteer's strings, allowing the phisher to manipulate the attack with precision and evade the safeguards that are the bulwarks of our digital fortresses.

LabSend

In the aftermath of its October disruption, LabHost unveiled 'LabSend,' an SMS spamming tool that embeds links to LabHost phishing pages in text messages. This tool orchestrates a symphony of automated smishing campaigns, randomizing portions of text messages to slip past the vigilant eyes of spam detection systems. Once the SMS lure is cast, LabSend responds to victims with customizable message templates, a Machiavellian touch to an already insidious scheme.

The Proliferation of PhaaS

The proliferation of PhaaS platforms like LabHost, 'Greatness,' and 'RobinBanks' has democratized cybercrime, lowering the threshold for entry and enabling even the most unskilled hackers to launch sophisticated attacks. These platforms are the catalysts for an exponential increase in the pool of threat actors, thereby magnifying the impact of cybersecurity on a global scale.

The ease with which these services can be accessed and utilized belies the complexity and skill traditionally required to execute successful phishing campaigns. Stephanie Carruthers, who leads an IBM X-Force phishing research project, notes that crafting a single phishing email can consume upwards of 16 hours, not accounting for the time and resources needed to establish the infrastructure for sending the email and harvesting credentials.

PhaaS platforms like LabHost have commoditized this process, offering a buffet of malevolent tools that can be customized and deployed with a few clicks. The implications are stark: the security measures that businesses and individuals have come to rely on, such as multi-factor authentication (MFA), are no longer impenetrable. PhaaS platforms have engineered ways to circumvent these defenses, rendering them vulnerable to exploitation.

Emerging Cyber Defense

In the face of this escalating threat, a multi-faceted defense strategy is imperative. Cybersecurity solutions like SpamTitan employ advanced AI and machine learning to identify and block phishing threats, while end-user training platforms like SafeTitan provide ongoing education to help individuals recognize and respond to phishing attempts. However, with phishing kits now capable of bypassing MFA,it is clear that more robust solutions, such as phishing-resistant MFA based on FIDO/WebAuthn authentication or Public Key Infrastructure (PKI), are necessary to thwart these advanced attacks.

Conclusion

The emergence of PhaaS platforms represents a significant shift in the landscape of cybercrime, one that requires a vigilant and sophisticated response. As we navigate this treacherous terrain, it is incumbent upon us to fortify our defenses, educate our users, and remain ever-watchful of the evolving tactics of cyber adversaries.

References

• https://www-bleepingcomputer-com.cdn.ampproject.org/c/s/www.bleepingcomputer.com/news/security/labhost-cybercrime-service-lets-anyone-phish-canadian-bank-users/amp/
• https://www.techtimes.com/articles/302130/20240228/phishing-platform-labhost-allows-cybercriminals-target-banks-canada.htm
• https://www.spamtitan.com/blog/phishing-as-a-service-threat/
• https://timesofindia.indiatimes.com/gadgets-news/five-government-provided-botnet-and-malware-cleaning-tools/articleshow/107951686.cms

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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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