Fake Video Uses AI Voice to Falsely Attribute Remarks on Prasidh Krishna to Virat Kohli

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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Executive Summary:

‍The internet has become a hub for fraudsters, and a new fraudulent scheme has been circulating, stating a free 84-day recharge of ₹719 given by the Honourable Prime Minister Narendra Modi  in celebration of the BJP Government formation in 2024. This is yet another scam that uses tricks to lure the users, for instance by fake questionnaires, fake promises and the use of the Honourable Prime Minister Narendra Modi’s image to give a fake impression of legitimacy. The following blog post analyzes the scam and offers recommendations on how to recognize similar frauds and avoid them.

False Claim:

A viral link trending on various social media platforms states that Narendra Modi, the Honourable Prime Minister of India, is giving a free 84-day free recharge worth ₹719 to all users in India and this is an Election Bonus  in celebration of the BJP government formation in 2024.  The claim insists the users are required to click on the link (https://offerraj.in/Congress2024-Recharge/id=9jMiaeN1) and complete a questionnaire to get the offer.

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The Deceptive Scheme:

1. Mobile-Only Access:  The malicious link (https://offerraj.in/Congress2024-Recharge/id=9jMiaeN1) is designed to open only on mobile devices; this makes it easier for more people to be affected. 
2. Multiple Redirects: After clicking the link, the users are led through a sequence of other links in order to conceal the actual source of the deception, and probably a try of making it difficult to track the notorious activity.
3. Fake Comments & Images: First, the landing page contains a banner with the photo of India’s Honourable Prime-Minister Narendra Modi which gives the site’s visitors the impression of the official source. Also, fake comments can be made for the same reason, stating that the author has received a free recharge and supporting the so-called initiative.
4. Fake Prize Notifications: For instance, after responding to the questions in the questionnaire, users may be presented with messages such as ‘Congratulations, you have won a free recharge’; this further creates an impression of a genuine offer.
5. Social Sharing Requirement: To collect the so-called ‘prize’, the users are requested to share the link in the WhatsApp or other social networks, thus contributing to the spread of the scam.

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Analyzing the Fraudulent Campaign:

1. No Official Announcement: The internet and other social platforms are the only places where such an offer has been mentioned, and there is no official announcement from the Government or any other authorized body.
2. Multiple Redirects: After clicking the link, users are taken through multiple redirects to obfuscating the source of the deception and to trace the malicious activity. 
3. Suspicious Domain and Hosting: The campaign is hosted on a third-party domain (offerraj.in) instead of any official government website, raising suspicion about its authenticity.
4. Personal Data Collection: The questionnaire prompts users to provide personal information, which legitimate Government initiatives would not typically request through unofficial channels.
5. Insecure HTTP Link: The link provided is an insecure HTTP link, whereas legitimate government websites employ secure HTTPS encryption.

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Domain Analysis:

The actual url is hosted on a third party domain instead of the official website of the BJP or any Government website. This is the common way to deceive users into falling for a Phishing scam. Whois information reveals that the domain has been registered recently i.e on 28-03-2023 and the domain is registered with godaddy.com and state is from Rajasthan, India. Cybercriminals used Cloudflare technology to mask the actual IP address of the fraudulent website.

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• Domain Name: offerraj.in
• Registry Domain ID: D9483D0EB38264263958C9609D2DCEA70-IN
• Registrar WHOIS Server:
• Registrar URL: www.godaddy.com
• Updated Date: 2024-05-03T07:30:03Z
• Creation Date: 2023-03-28T04:33:12Z
• Registry Expiry Date: 2026-03-28T04:33:12Z
• Registrar: GoDaddy.com, LLC
• Registrar IANA ID: 146
• Registrant State/Province: Rajasthan
• Registrant Country: IN
• Name Server: johnathan.ns.cloudflare.com
• Name Server: braelyn.ns.cloudflare.com

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Similar offer surfing with different links: Several similar kind of offers through various links such as https://offerintro.com/BJP2024-Recharge/id=QYntPBDU,  https://mahaloot2.xyz, https://mahaloot3.xyz, https://pmoffer4.online,  are available in the social media. All these links are analysed and validated to be malicious or phishing links. 

CyberPeace Advisory and Best Practices:

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1. Stay Informed: Be aware of potential scams and rely on official government channels for verified information.
2. Verify Website Security: Do not click on links that have the ‘http’ at the beginning and focus on sites that have encryption (‘https’).
3. Protect Personal Information: Be careful when there is any request to send some type of personal information, especially if it is done through informal companies.
4. Report Suspicious Activity: When you notice that you have been scammed or a certain activity is fraudulent, ensure to report the incidents to the necessary authorities and the platforms to prevent others from being scammed.

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Conclusion: 

The claim of 84 day free recharge worth ₹719 to all users in India as an “Election Bonus”  is false and similar kinds of various links are consistently surfing through the internet. The deceptive practices employed in these kinds of links are insecure and it has multiple redirects to false promises which highlights the need for heightened awareness and caution among internet users.  In this digital world, it is important to stay informed, verify the authenticity of resources to protect personal information. Individuals can safeguard themselves against such fraudulent schemes and contribute to a safer online environment.

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Introduction

The Ministry of Electronics and Information Technology recently released the IT Intermediary Guidelines 2023 Amendment for social media and online gaming. The notification is crucial when the Digital India Bill’s drafting is underway. There is no denying that this bill, part of a series of bills focused on amendments and adding new provisions, will significantly improve the dynamics of Cyberspace in India in terms of reporting, grievance redressal, accountability and protection of digital rights and duties.

What is the Amendment?

The amendment comes as a key feature of cyberspace as the bill introduces fact-checking, a crucial aspect of relating information on various platforms prevailing in cyberspace. Misformation and disinformation were seen rising significantly during the Covid-19 pandemic, and fact-checking was more important than ever. This has been taken into consideration by the policymakers and hence has been incorporated as part of the Intermediary guidelines. The key features of the guidelines are as follows –

• The phrase “online game,” which is now defined as “a game that is offered on the Internet and is accessible by a user through a computer resource or an intermediary,” has been added.
• A clause has been added that emphasises that if an online game poses a risk of harm to the user, intermediaries and complaint-handling systems must advise the user not to host, display, upload, modify, publish, transmit, store, update, or share any data related to that risky online game.
• A proviso to Rule 3(1)(f) has been added, which states that if an online gaming intermediary has provided users access to any legal online real money game, it must promptly notify its users of the change, within 24 hours.
• Sub-rules have been added to Rule 4 that focus on any legal online real money game and require large social media intermediaries to exercise further due diligence. In certain situations, online gaming intermediaries:

• Are required to display a demonstrable and obvious mark of verification of such online game by an online gaming self-regulatory organisation on such permitted online real money game
• Will not offer to finance themselves or allow financing to be provided by a third party.
• Verification of real money online gaming has been added to Rule 4-A.

• The Ministry may name as many self-regulatory organisations for online gaming as it deems necessary for confirming an online real-money game.
• Each online gaming self-regulatory body will prominently publish on its website/mobile application the procedure for filing complaints and the appropriate contact information.
• After reviewing an application, the self-regulatory authority may declare a real money online game to be a legal game if it is satisfied that:

• There is no wagering on the outcome of the game.
• Complies with the regulations governing the legal age at which a person can engage into a contract.
• The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 have a new rule 4-B (Applicability of certain obligations after an initial period) that states that the obligations of the rule under rules 3 and 4 will only apply to online games after a three-month period has passed.
• According to Rule 4-C (Obligations in Relation to Online Games Other Than Online Real Money Games), the Central Government may direct the intermediary to make necessary modifications without affecting the main idea if it deems it necessary in the interest of India’s sovereignty and integrity, the security of the State, or friendship with foreign States.
• Intermediaries, such as social media companies or internet service providers, will have to take action against such content identified by this unit or risk losing their “safe harbour” protections under Section 79 of the IT Act, which let intermediaries escape liability for what third parties post on their websites. This is problematic and unacceptable. Additionally, these notified revisions can circumvent the takedown order process described in Section 69A of the IT Act, 2000. They also violated the ruling in Shreya Singhal v. Union of India (2015), which established precise rules for content banning.
• The government cannot decide if any material is “fake” or “false” without a right of appeal or the ability for judicial monitoring since the power to do so could be abused to thwart examination or investigation by media groups. Government takedown orders have been issued for critical remarks or opinions posted on social media sites; most of the platforms have to abide by them, and just a few, like Twitter, have challenged them in court.

Conclusion

The new rules briefly cover the aspects of fact-checking, content takedown by Govt, and the relevance and scope of sections 69A and 79 of the Information Technology Act, 2000. Hence, it is pertinent that the intermediaries maintain compliance with rules to ensure that the regulations are sustainable and efficient for the future. Despite these rules, the responsibility of the netizens cannot be neglected, and hence active civic participation coupled with such efficient regulations will go a long way in safeguarding the Indian cyber ecosystem.