#FactCheck: IAF Shivangi Singh was captured by Pakistan army after her Rafale fighter jet was shot down

Introduction

A 33-year-old MBA graduate and 36-year-old software engineer set up the cybercrime hub in one bedroom. They formed the nameless private enterprise two years ago and hired the two youngsters as employees. The police revealed that the fraudsters moved Rs 854 crore rapidly through 84 bank accounts in the last two years. They were using eight mobile phones active during the day and night for their malicious operations. This bad actors group came in the eyes of the police when a 26-year-old woman filed a complaint, she was lured and cheated for Rs 8.5 lakh on the pretext of making small investments for high returns. It led to cyber crime police on their doorstep. The police discovered that they were operating a massive cyber fraud network from that single room, targeting a large number of people for committing cyber fraud through offering investment schemes and luring innocent people. 

How cybercrime fraudsters lured the victims?

The Bangalore police have busted a cyber fraud scam worth 854 Crore rupees. And police have arrested 6 accused. These bad actors illegally deceived numerous victims on the pretext of investment schemes. The gang used to lure them through WhatsApp and Telegram. Initially, the people were asked to invest small amounts, promising daily profits ranging from 1 thousand to 5 thousand rupees. As the trust grew, thousands of victims indulged in investments ranging from 1 lack to 10 lack rupees. This Money luring modus operandi was used by the fraudsters to attract them and get the victims to invest more and more. The amount invested by the victims was deposited into various bank accounts by the fraudsters. When the victims tried to withdraw their amount after depositing they were unable to do so. Soon after the amount was received, the accused gang would launder the money and divert it to other accounts. 

Be cautious of online investment fraud 

It concerns all of us who used to invest online. The Bangalore police have busted cyber crime or cyber investment fraud of 854 crore rupees. The 6 members of the gang that the police have arrested used to approach victims through WhatsApp and telegram to convince them to invest small amounts, from 1 thousand to 10 thousand at the bare minimum and promising them returns or profit amount per day and later lock this amount and diverting it into different bank accounts, ensuring that those get invested never get access to it again.  Now, this went on in the country receiving a large number of cases that have been registered from various states in the country. 

Advisory and best practices

• It is important to mention that there could be several other cybercrime investment frauds like this that you may not even be aware of. Hence, this incident of massive online investment fraud operated from the IT capital of the country definitely acts as an eye-opener for all of us. We urge people to be cautious and raise the alarm about any such cyber crime or investment fraud that they see in the cyber world today. 
• In the age of the internet, where there is a large number of mobile users in the country, and users look for a source of income on the internet and use it to invest their money, it is important to be aware of such fraud and be cautious and take proper precautions before investing in any such online scheme. It is always advisable to invest only in legitimate sources and after conducting due diligence.
• Be cautious and do your research: Whenever you are investing in any scheme or in digital currency, make sure to verify the authenticity or legitimacy of the person or company who is offering such service. Check the reviews, official website, and feedback from authentic sources. Find out whether the agents or brokers who contact you are licensed to operate in your state and are compliant with regulators or other investors. 
• Verify the credentials: Check the genuineness by checking the licenses, registration and certification of the person or company offering such services, whether he is authorised or not.
• Be Skeptical of offers which seem to be too good: If it sounds too good, be cautious and inquire about its authenticity, such as unsolicited offers. Be especially careful if you receive an unsolicited pitch to invest in a particular company or see it praised online but if you could not find current financial information about it from independent sources. It could be a fraudulent scheme. It is advisable to compare promised yields with current returns on well-known stock indexes.
• Seek Expert Advice: If you are a beginner in online investment, you may seek advice from reliable resources such as financial advisors who can provide more clarity on aspects of investment and guidance to help you make informed decisions.
• Avoid Unreliable Platforms: Be cautious and stick to authorised established agencies. Be cautious when dealing with a person or company lacking sufficient user reviews and credible security measures.
• Protect yourself online: Protect yourself online. Fraudsters target users on online and social marketing sites and commit various online frauds; hence, it's important to be cautious and protect yourself online. So be cautious and make your own sound decision after all analysis while investing in any such services. 
• Report Suspicious Accounts: If you encounter any social media accounts, social media groups or profiles which seem suspicious and engaged in fraudulent services, you must report such profiles to the respective platform immediately.
• Report cyber crimes to law enforcement agencies: A powerful resource available to victims of cybercrime is the National Cyber Crime Reporting Portal, equipped with a 24x7 helpline number, 1930. This portal serves as a centralised platform for reporting cybercrimes, including financial fraud.

Conclusion:

This recent cyber investment fraud worth Rs 854 Crore, orchestrated by a group of fraudsters operating from a single room, serves as a stark reminder of the risks posed by bad actors. This incident underscores the importance of being vigilant when it comes to online investments and financial transactions. As we navigate the vast and interconnected landscape of the internet, it is imperative that we exercise due diligence and employ best practices to protect ourselves. We need to be cautious and protected from falling victim to these fraudulent schemes, actively reporting suspicious accounts and cybercrimes to relevant authorities through resources like the National Cyber Crime Reporting Portal will contribute to helping stop these types of cyber crimes. Knowledge and awareness are some of the biggest factors we have in fighting back against such cyber frauds in this digital age and making a safer digital environment for everyone.

References

• https://www.news18.com/india/bengaluru-cyber-crime-rs-854-crore-84-banks-accounts-fraud-network-one-bedroom-house-yelahanka-karnataka-8618426.html
• https://indianexpress.com/article/cities/bangalore/cyber-crime-bengaluru-links-over-5000-cases-india-8982753/lite/

‍

‍

Introduction

In the multifaceted world of international trade and finance, cross-border transactions constitute the heart of economic relationships that span the globe. The threads that intertwine forming the fabric of global commerce are ceaselessly dynamic and exhibit an intricate pattern of complexity especially when it comes to the regulated movement of capital. It's a domain where economies connect, where businesses engage in sublime commerce, and where technology and regulation intersect at critical juncture. These guidelines will play a critical role in the regulation of capital, fortification of financial integrity, and transparency of regulatory and cross-border payments. The key highlights of this regulation include strict pre-authorization for non-bank entities, mandating specific accounts for import and export PA-CBs and a transaction ceiling of 25,00,000 Rupees.

The Vigilance of RBI 

The Reserve Bank of India (RBI), ever vigilant in its shepherding role over the nation's financial stability and integrity, has taken decisive strides to dispel the haze that once clouded this critical sector. With the issuance of a revelatory circular dated October 31, 2023, the RBI has unveiled a groundbreaking framework that redefines the terrain for these pivotal financial entities, aptly christened as Payment Aggregators – Cross Border (PA-CB). In deploying this comprehensive array of regulations, the RBI demonstrates a robust commitment to harmonizing and synchronizing the oversight of payments within the country's financial fabric, extending its meticulous regulatory weave from domestic Payment Aggregators (PAs) to the PA-CBs, a sector previously undistinguished in formal oversight.

The prescriptive measures announced by the RBI are nothing short of a regulatory beacon that cuts through the fog of uncertainty, illuminating a clear path forward for entities dedicated to facilitating cross-border payment transactions pertaining to the import and export of permissible goods and services in India through online modes. Inclusiveness is a hallmark of the RBI’s directive, encompassing a diverse cadre of financial actors, ranging from Authorized Dealer (AD) banks and conventional Payment Aggregators (PAs), to the emergent breed of PA-CBs actively engaged in processing these critical international payment transactions.

Key Aspects of Regulation

One of the most striking aspects of this new regulatory regime is the RBI's insistence on pre-authorization. All non-bank entities providing PA-CB services are impelled to apply to the apex bank for authorisation by April 30, 2024. This is far from a perfunctory gesture; it represents a profound departure from the bygone era when these entities functioned under a patchwork of provisional guidelines and ad-hoc circulars. Indeed, with this resolute move, the RBI signals its intention to embrace these entities within its direct regulatory gambit, an acknowledgement of the shifting tides and progressive intricacies characteristic of cross-border payments.

The tapestry of new rules is complex, setting forth an array of prerequisites for entities aspiring for authorization. For instance, non-bank PA-CBs are obliged to register with the Financial Intelligence Unit-India (FIU-IND) as a preliminary step before commencing the application process. Moreover, the financial benchmarks set are notably rigorous. Non-banks must boast a minimum net worth of ₹15 crores at the time of the application—a figure that escalates to a robust ₹25 crores by the fiscal deadline of March 31, 2026.

Way Forward

As if these requirements weren't indicative enough of the RBI’s penchant for detail and precision, the guidelines become yet more granular when addressing specific types of PA-CBs. Import-only PA-CBs are mandatorily obliged to maintain an Import Collection Account (ICA) with an AD Category-I scheduled commercial bank, while export-only PA-CBs are instructed to maintain an Export Collection Account (ECA), which can be maintained in Indian Rupees (INR) or any permissible foreign currency. The nuance here is palpable; payments for import transactions must be received in a meticulously managed escrow account of the PA, prior to being funneled into the ICA for smooth settlement with overseas merchants.

Conversely, export-only PA-CBs' proceeds from international sales must be swiftly credited to the relevant currency ECA. This meticulous accounting ensures that the flow of funds is both transparent and traceable, adhering to the utmost standards of financial probity.

Yet, perhaps the most emphatic of the RBI's pronouncements is the establishment of a transaction ceiling. PA-CBs have their per-transaction limit capped at ₹25,00,000 for each unit of goods or services exchanged. This calculated move is transparent in its objective to mitigate risk—a crucial aspect when one considers the potential implications of these transactions on the country’s fiscal health and the integrity of its financial systems.

It is no exaggeration to declare that with these guidelines, the RBI is effectuating a seismic shift in the regulation of cross-border payment transactions. There's a fundamental transformation taking place—a metamorphosis—from a loosely defined existence of PA-CBs to one of distinct clarity, under the direct and unswerving supervisory gaze of the regulator. The compliance burden, indeed, has become heavier, yet the return is a compass that points decisively towards secure harbours.

As we embark upon the fresh horizons that these rules bring into view, it is imperative to acknowledge that the RBI's regulatory innovations represent far more than a mere codification of dos and don'ts. They embody a visionary stride towards safeguarding and fortifying the architecture of international payments, a critical component of India's burgeoning presence on the world economic stage.

Conclusion 

The journey ahead, as we navigate these newly charted waters with the RBI's guidelines as our steadfast North Star, will no doubt be replete with challenges, adaptations and learning curves for the array of operational entities. But it is with confidence we can say, the path is set; the map is clear. The complex labyrinth of cross-border financial transactions is now demystified, and the RBI's clarion call beckons us towards a future marked by regulation, security, and above all else, reliability in the cosmopolitan tapestry of global trade. RBI’s guidelines provide a comprehensive framework for standardizing cross-border financial transactions in India. This decision is a monumental step towards maintaining cyber peace in cyberspace. 

References:

• https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12561&Mode=0
• https://www2.deloitte.com/in/en/pages/tax/articles/tax-alert-Regulation-of-payment-aggregator-cross-border-pa-cb.html
• https://www.jsalaw.com/newsletters-and-updates/rbis-new-guidelines-to-govern-payment-aggregators-in-cross-border-transactions/ 

‍

Introduction

Misinformation and disinformation are significant issues in today's digital age. The challenge is not limited to any one sector or industry, and has been seen to affect everyone that deals with data of any sort. In recent times, we have seen a rise in misinformation about all manner of subjects, from product and corporate misinformation to manipulated content about regulatory or policy developments.  

Micro, Small, and Medium Enterprises (MSMEs) play an important role in economies, particularly in developing nations, by promoting employment, innovation, and growth. However, in the evolving digital landscape, they also confront tremendous hurdles, such as the dissemination of mis/disinformation which may harm reputations, disrupt businesses, and reduce consumer trust. MSMEs are particularly susceptible since they have minimal resources at their disposal and cannot afford to invest in the kind of talent, technology and training that is needed for a business to be able to protect itself in today’s digital-first ecosystem. Mis/disinformation for MSMEs can arise from internal communications, supply chain partners, social media, competitors, etc. To address these dangers, MSMEs must take proactive steps such as adopting frameworks to counter misinformation and prioritising best practices like digital literacy and training, monitoring and social listening, transparency protocols and robust communication practices.

Assessing the Impact of Misinformation on MSMEs

To assess the impact of misinformation on MSMEs, it is essential to get a full sense of the challenges. To begin with, one must consider the categories of damage which can include financial loss, reputational damage, operational damages, and regulatory noncompliance. Various assessment methodologies can be used to analyze the impact of misinformation, including surveys, interviews, case studies, social media and news data analysis, and risk analysis practices.

Policy Framework and Gaps in Addressing Misinformation

The Digital India Initiative, a flagship program of the Government of India, aims to transform India into a digitally empowered society and knowledge economy. The Information Technology Act, 2000 and the rules made therein govern the technology space and serve as the legal framework for cyber security and data protection. The Bhartiya Nyay Sanhita, 2023 also contains provisions regarding ‘fake news’. The Digital Personal Data Protection Act, 2023 is a brand new law aimed at protecting personal data. Fact-check units (FCUs) are government and private independent bodies that verify claims about government policies, regulations, announcements, and measures. However, these policy measures are not sector-specific and lack specific guidelines, which have limited impact on their awareness initiatives on misinformation and insufficient support structure for MSMEs to verify information and protect themselves.

Recommendations for Countering Misinformation in the MSME Sector

To counter misinformation for MSMEs, recommendations include creating a dedicated Misinformation Helpline, promoting awareness campaigns, creating regulatory support and guidelines, and collaborating with tech platforms and expert organisations for the identification and curbing of misinformation. 

Organisational recommendations include the Information Verification Protocols for the consumers of Information for the verification of critical information before acting upon it, engaging in employee training for regular training on the identification and management of misinformation, creating a crisis management plan to deal with misinformation crisis, form collaboration networks with other MSMEs to share verified information and best practices. 

Engage with technological solutions like AI and ML tools for the detection and flagging of potential misinformation along with fact-checking tools and engaging with cyber security measures to prevent misinformation via digital channels.

Conclusion: Developing a Vulnerability Assessment Framework for MSMEs

Creating a vulnerability assessment framework for misinformation in Micro, Small, and Medium Enterprises (MSMEs) in India involves several key components which include the understanding of the sources and types of misinformation, assessing the impact on MSMEs, identifying the current policies and gaps, and providing actionable recommendations. The implementation strategy for policies to counter misinformation in the MSME sector can be by starting with pilot programs in key MSME clusters, and stakeholder engagement by involving industry associations, tech companies and government bodies. Initiating a feedback mechanism for constant improvement of the framework and finally, developing a plan to scale successful initiatives across the country.

References

• https://publications.ut-capitole.fr/id/eprint/48849/1/wp_tse_1516.pdf 
• https://techinformed.com/how-misinformation-can-impact-businesses/ 
• https://pib.gov.in/aboutfactchecke.aspx 

‍