#FactCheck - Manipulated Image Alleging Disrespect Towards PM Circulates Online

Introduction

Ministry of Electronics and Information Technology (MeitY) Announces to Centre Government to Plan to Certify Permissible Online Games.

In a recent update to the notification released by the Ministry of Electronics and Information Technology (MeitY) on April 6, MeitY has requested gaming entities to establish self-regulatory organisations (SROs) within a timeframe of 30 days or a maximum of 90 days from the date of the notification, which is April 6, 2023. The Ministry of Electronics and Information Technology (MeitY) has further announced that the central government will certify which online games are permissible until the SROs are officially established. The intention behind establishing SROs is to assist intermediaries, such as Apple or Google, in determining what constitutes a permitted online game, but the SRO will take 2-3 months to complete. In the meanwhile, the Central government will step in and determine what is a permissible online game.

Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 & Intermediary Guidelines and Digital Media Ethics Code Amendment Rules, 2023

By enacting these rules, the Indian government has taken decisive action to protect Indian gamers and their financial resources against scams and fraud. The rules also serve to promote responsible gaming while preventing young and vulnerable users from being exposed to indecent or abusive content.

Amendment Rules developed the concept of a “Permissible online real money game.” This designation is reserved for games that have passed a review process conducted by a self-regulatory body (SRB).  Amendment rules indicate that Online Gaming Intermediaries must ensure that they do not permit any third party to host non-permissible online real money games on their platforms. This development is important because it empowers us to distinguish between legitimate and illicit real money games.

The Amendment Rules define an online gaming provider as an “intermediary” under the Information Technology Act of 2000, creating a separate classification called ‘Online Gaming Intermediary’.

Central government to certify what is an ‘Online Permissible Game’

The industry has been wondering what games come under wagering and will be banned. So, until the SROs are officially established, the government, in the interim, will certify what is a permissible game, what is wagering, and what is not wagering. Games that involve elements of wagering are going to be barred. The new regulations prohibit wagering on any outcome, whether in skill-based or chance-based games. Hence gaming applications involving wagering and betting apps will be barred.

Self-Regulatory Organizations (SROs)

According to the new regulations by the Ministry of Electronics and Information Technology (MeitY), online gaming intermediaries must establish a Self-Regulatory Body (SRO) to approve games offered to users over the Internet. The SRO must be registered with the Ministry and develop a framework to ensure compliance with the IT Rules 2021 objectives. An ‘online game’ can be registered by the SRO if it meets specific criteria, which include that the game is offered by an online gaming intermediary that is a member of the self-regulatory body, the game is not containing any content harmful to India’s interests, and complying with all relevant Indian regulations. If these requirements are met, the intermediary can display a visible registration mark indicating its registration with the self-regulatory authority.

Conclusion

MeitY found that with the rapid growth of the gaming industry, the real money gaming (RMG) sector had to be regulated properly. Rules framed must be properly implemented to stop gambling, betting, and wagering apps.

The IT Rules 2021, along with the Amendment Rules 2023, are created to take concrete action to curb the proliferation of gambling, betting, and wagering apps in India. These rules empower to issue of directives to ban specific apps that facilitate or promote such activities. The app ban directive allows the government to take decisive action by blocking access to these apps, making them unavailable for download or use within the country. This measure is aimed at curbing the negative impact of gambling, betting, and wagering on individuals and society, including issues related to addiction, financial loss, and illegal activities. Rules aim to actively combat the spread and influence of such apps and provide a safer online environment for gaming users.

The self-regulatory body in the context of online gaming will have the authority to grant membership to gaming intermediaries, register online games, develop a framework for regulation, interact with the Central Government, address user complaints, report instances of non-compliance, and take necessary actions to safeguard online gaming users.

Introduction

Data Breaches have taken over cyberspace as one of the rising issues, these data breaches result in personal data making its way toward cybercriminals who use this data for no good. As netizens, it's our digital responsibility to be cognizant of our data and the data of one's organization. The increase in internet and technology penetration has made people move to cyberspace at a rapid pace, however, awareness regarding the same needs to be inculcated to maximise the data safety of netizens. The recent AIIMS cyber breach has got many organisations worried about their cyber safety and security. According to the HIPPA Journal, 66% of healthcare organizations reported ransomware attacks on them. Data management and security is the prime aspect of clients all across the industry and is now growing into a concern for many. The data is primarily classified into three broad terms-

• Personal Identified Information (PII) - Any representation of information that permits the identity of an individual to whom the information applies to be reasonably inferred by either direct or indirect means.
• Non-Public Information (NPI) - The personal information of an individual that is not and should not be available to the public. This includes Social Security Numbers, bank information, other personal identifiable financial information, and certain transactions with financial institutions.
• Material Non-Public Information (MNPI) - Data relating to a company that has not been made public but could have an impact on its share price. It is against the law for holders of nonpublic material information to use the information to their advantage in trading stocks.

This classification of data allows the industry to manage and secure data effectively and efficiently and at the same time, this allows the user to understand the uses of their data and its intensity in case of breach of data. Organisations process data that is a combination of the above-mentioned classifications and hence in instances of data breach this becomes a critical aspect. Coming back to the AIIMS data breach, it is a known fact that AIIMS is also an educational and research institution. So, one might assume that the reason for any attack on AIIMS could be either to exfiltrate patient data or could be to obtain hands-on the R & D data including research-related intellectual properties. If we postulate the latter, we could also imagine that other educational institutes of higher learning such as IITs, IISc, ISI, IISERs, IIITs, NITs, and some of the significant state universities could also be targeted. In 2021, the Ministry of Home Affairs through the Ministry of Education sent a directive to IITs and many other institutes to take certain steps related to cyber security measures and to create SoPs to establish efficient data management practices. The following sectors are critical in terms of data protection-

• Health sector
• Financial sector
• Education sector
• Automobile sector

These sectors are generally targeted by bad actors and often data breach from these sectors result in cyber crimes as the data is soon made available on Darkweb. These institutions need to practice compliance like any other corporate house as the end user here is the netizen and his/her data is of utmost importance in terms of protection.Organisations in today's time need to be in coherence to the advancement in cyberspace to find out keen shortcomings and vulnerabilities they may face and subsequently create safeguards for the same. The AIIMS breach is an example to learn from so that we can protect other organisations from such cyber attacks. To showcase strong and impenetrable cyber security every organisation should be able to answer these questions-

• Do you have a centralized cyber asset inventory?
• Do you have human resources that are trained to model possible cyber threats and cyber risk assessment?
• Have you ever undertaken a business continuity and resilience study of your institutional digitalized business processes?
• Do you have a formal vulnerability management system that enumerates vulnerabilities in your cyber assets and a patch management system that patches freshly discovered vulnerabilities?
• Do you have a formal configuration assessment and management system that checks the configuration of all your cyber assets and security tools (firewalls, antivirus management, proxy services) regularly to ensure they are most securely configured?
• Do have a segmented network such that your most critical assets (servers, databases, HPC resources, etc.) are in a separate network that is access-controlled and only people with proper permission can access?
• Do you have a cyber security policy that spells out the policies regarding the usage of cyber assets, protection of cyber assets, monitoring of cyber assets, authentication and access control policies, and asset lifecycle management strategies?
• Do you have a business continuity and cyber crisis management plan in place which is regularly exercised like fire drills so that in cases of exigencies such plans can easily be followed, and all stakeholders are properly trained to do their part during such emergencies?
• Do you have multi-factor authentication for all users implemented?
• Do you have a supply chain security policy for applications that are supplied by vendors? Do you have a vendor access policy that disallows providing network access to vendors for configuration, updates, etc?
• Do you have regular penetration testing of the cyberinfrastructure of the organization with proper red-teaming?
• Do you have a bug-bounty program for students who could report vulnerabilities they discover in your cyber infrastructure and get rewarded?
• Do you have an endpoint security monitoring tool mandatory for all critical endpoints such as database servers, application servers, and other important cyber assets?
• Do have a continuous network monitoring and alert generation tool installed?
• Do you have a comprehensive cyber security strategy that is reflected in your cyber security policy document?
• Do you regularly receive cyber security incidents (including small, medium, or high severity incidents, network scanning, etc) updates from your cyber security team in order to ensure that top management is aware of the situation on the ground?
• Do you have regular cyber security skills training for your cyber security team and your IT/OT engineers and employees?
• Do your top management show adequate support, and hold the cyber security team accountable on a regular basis?
• Do you have a proper and vetted backup and restoration policy and practice?

If any organisation has definite answers to these questions, it is safe to say that they have strong cyber security, these questions should not be taken as a comparison but as a checklist by various organisations to be up to date in regard to the technical measures and policies related to cyber security. Having a strong cyber security posture does not drive the cyber security risk to zero but it helps to reduce the risk and improves the fighting chance. Further, if a proper risk assessment is regularly carried out and high-risk cyber assets are properly protected, then the damages resulting from cyber attacks can be contained to a large extent.

Overview:

The National Payments Corporation of India (NPCI) officially revealed on the 31st of July 2024 that its client C-Edge Technologies had been subject to a ransomware attack. These circumstances have caused C-Edge to be separated from retail payment systems to  eliminate more threats to the national payment systems. More than 200 cooperative and regional rural banks have been affected leading to disruptions in normal services including ATM withdrawals and UPI transactions.

About C-Edge Technologies:

C-Edge Technologies was founded in the year 2010 especially to meet the specific requirements of the Indian banking and other allied sectors accentuating more on the cooperative and the regional rural banks. The company offers a range of services such as Core Banking Solutions by functioning as the center of a bank where customers’ records are managed and accounting of transactions takes place, Payment Solutions through the implementation of payment gateways and mobile banking facilities, cybersecurity through threat detection and incident response to protect banking organizations, data analytics and AI through the analytics of big banking data to reduce risks and detect frauds.

Details of Ransomware attack:

Reports say, this ransomware attack has been attributed by the RansomEXX group which primarily targeted Brontoo Technology Solutions, a key collaborator with  C-Edge, through a misconfigured Jenkins server, which allowed unauthorized access to the systems.

The RansomExx group also known as Defray777 or Ransom X utilized a sophisticated variant known as RansomEXX v2.0 to execute the attack. This group often targets large organizations and demands substantial ransoms.  RansomEXX uses various malware tools such as IcedID, Vatet Loader, and PyXie RAT. It typically infiltrates systems through phishing emails, exploiting vulnerabilities in applications and services, including Remote Desktop Protocol (RDP).  The ransomware encrypts files using the Advanced Encryption Standard (AES), with the encryption key further secured using RSA encryption. This dual-layer encryption complicates recovery efforts for victims. RansomEXX operates on a ransomware-as-a-service model, allowing affiliates to conduct attacks using its infrastructure. Earlier in 2021,  it attacked StarHub and Gigabyte’s servers for ransome.

Impact due to the attack:

The immediate consequences of the ransomware attack include:

• Service Disruption: This has negative implications to consumers especially the citizens who use the banks to do their day to day banking activities such as withdrawals and online transactions. Among the complaints some of them relate to cases where the sender’s account has been debited without the corresponding credit to the receiver account.

• Isolation Measures: Likely, NPCI is already following the right measures as it had disconnected C-Edge from its networks to contain the proliferation of the ransomware. This decision was made as a precautionary measure so that all functional aspects in a larger financial system are safeguarded.

Operations resumed:

The National Payments Corporation of India (NPCI) said it has restored connectivity with C-Edge Technologies Ltd after the latter’s network connection was severed by NPCI over security concerns that were evaluated by an external forensic auditing firm. The audit affirmed that all affected systems were contained in order to avoid the occurrence of ransomware attack contagion. All the affected systems were localized in C-Edge’s data center and no repercussion was evidenced regarding the infrastructure of the cooperative banks or the regional rural banks that are involved in the business. Both NPCI and C-Edge Technologies have resumed normalcy so that the banking and financial services being offered by these banks remain safe and secure.

Major Implications for Banking Sector:

The attack on C-Edge Technologies raises several critical concerns for the Indian banking sector:

• Cybersecurity Vulnerabilities: It also shows the weak linkages which are present within the technology system that help smaller sized banks. Nevertheless, the service has been offered by C-Edge regarding their cybersecurity solution, this attack evidence that the securities required should improve in all types of banks and banking applications.

• Financial Inclusion Risks: Co operative and regional rural banks also have its importance in the financial inclusion especially in rural and semi urban areas. Gradually, interruptions to their services pose a risk to signal diminished improvement in financial literacy for the excluded groups contrary to the common year advancement.

• Regulatory Scrutiny: After this event, agencies such as the Reserve Bank of India (RBI) may enhance the examination of the banking sector’s cybersecurity mechanisms. Some of the directives may even require institutions to adhere to higher compliance measures regarding the defense against cyber threats.

Way Forward: Mitigation  

• Strengthening Cybersecurity: It is important to enhance the cyber security to eliminate this kind of attacks in the future. This may include using  better threat detection systems, penetration testing to find the vulnerabilities, system hardening, and network monitoring  from time to time.

• Transition to Cloud-Based Solutions: The application of adaptations in cloud solutions can contribute to the enhancement in operative efficiency as well as optimization in the utilization of resources. The security features of cloud should be implemented for  safety  and protection against cyber threats for SMEs in the banking sector.

• Leveraging AI and Data Analytics: Development of the AI-based solutions for fraud and risk control means that bank organizations get the chance to address threats and to regain clients’ trust.

Conclusion:

This ransomware attack in C-Edge Technologies in the banking sector provides a warning for all the infrastructures. Initial cleanup methodologies and quarantining are effective. The continuous monitoring of cyber security features in the infrastructure and awareness between employees helps to avoid these kinds of attacks.  Building up cyber security areas will also effectively safeguard the institution against other cyber risks in the future and fortify the confidence and reliability of the financial system, especially the regional rural banks.

Reference:

• https://www.businesstoday.in/technology/news/story/c-edge-technologies-a-deep-dive-into-the-indian-fintech-powerhouse-hit-by-major-cyberattack-439657-2024-08-01
• https://www.thehindu.com/sci-tech/technology/customers-at-several-small-sized-banks-affected-as-tech-provider-c-edge-suffers-ransomware-attack/article68470198.ece
• https://www.cnbctv18.com/technology/ransomware-attack-disrupts-over-200-co-operative-banks-regional-rural-banks-19452521.htm
• https://timesofindia.indiatimes.com/city/ahmedabad/ransomware-breach-at-c-edge-impacts-transactions-for-cooperative-banks/articleshow/112180914.cms
• https://www.emsisoft.com/en/blog/41027/ransomware-profile-ransomexx/

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