#FactCheck - Deepfake Alert: Virat Kohli's Alleged Betting App Endorsement Exposed

According to Statista, the number of users in India's digital assets market is expected to reach 107.30m users by 2025 (Impacts of Inflation on Financial Markets, August 2023). India's digital asset market has been experiencing exponential growth fueled by the increased adoption of cryptocurrencies and blockchain technology. This furthers the need for its regulation. Digital assets include cryptocurrencies, NFTs, asset-backed tokens, and tokenised real estate. 

India has defined Digital Assets under Section 47(A) of the Income Tax Act, 1961. The Finance Act 2022-23 has added the word 'virtual' to make it “Virtual Digital Assets”. A “virtual digital asset” is any information or code, number, or token, created through cryptographic methods or otherwise, by any name, giving a digital representation of value exchanged with or without consideration. A VDA should contain an inherent value and represent a store of value or unit of account, functional in any financial transaction or investment. These can be stored,  transferred, or traded in electronic format. 

Digital Asset Governance: Update and Future Outlook

Indian regulators have been conservative in their approach towards digital assets, with the Reserve Bank of India first issuing directions against cryptocurrency transactions in 2018. This ban was removed by the Supreme Court through a court order in 2020. The presentation of the Cryptocurrency and Regulation of Official Digital Currency Bill of 2021 is a fairly important milestone in its attempts to lay down the framework for issuing an official digital currency by the Reserve Bank of India. While some digital assets seem to have potential, like the Central Bank Digital Currencies (CBDCs) and blockchain-based financial applications, a blanket prohibition has been enforced on private cryptocurrencies.

However, in more recent trends, the landscape is changing as the RBI's CBDC is to provide a state-backed digital alternative to cash under a more structured regulatory framework. This move seeks to balance state control with innovation on investor safety and compliance, expecting to reduce risk and enhance security for investors by enacting strict anti-money laundering and know-your-customer laws. Highlighting these developments is important to examine how global regulatory trends influence India's digital asset policies.

Impact of Global Development on India’s Approach 

Global regulatory developments have an impact on Indian policies on digital assets. The European Union's Markets in Crypto-assets (MiCA) is to introduce a comprehensive regulatory framework for cryptocurrencies that could act as an inspiration for India. MiCA regulation covers crypto-assets that are not currently regulated by existing financial services legislation. Its particular focus on consumer protection and market integrity resonates with India in terms of investigating needs related to digital assets, including fraud and price volatility. Additionally, evolving policies in the US, such as regulating crypto exchanges and classifying certain tokens as securities, could also form the basis for India's regulatory posture.

Collaboration on the international level is also a chief contributing factor. India’s regular participation in global forums like the G20, facilitates an opportunity to align its regulations on digital assets with other countries, tending toward an even more standardised and predictable framework for cross-border transactions. This can significantly help India given that the nation  has a huge diaspora providing a critical inflow of remuneration.

CyberPeace Outlook

Though digital assets offer many opportunities to India, challenges also exist. Cryptocurrency volatility affects investors, posing concerns over fraud and illicit dealings. A balance between the need for innovation and investor protection is paramount to avoid killing the growth of India's digital asset ecosystem with overly restrictive regulations.

Financial inclusion, efficient cross-border payments with low transaction costs, and the opening of investment opportunities are a few opportunities offered by digital assets. For example, the tokenisation of real estate throws open real estate investment to smaller investors. To strengthen the opportunities while addressing challenges, some policy reforms and new frameworks might prove beneficial. 

CyberPeace Policy Recommendations

• Establish a regulatory sandbox for startups working in the area of blockchain and digital assets. This would allow them to test innovative solutions in a controlled environment with regulatory oversight minimising risks.
• Clear guidelines for the taxation of digital assets should be provided as they will ensure transparency, reduce ambiguity for investors, and promote compliance with tax regulations. Specific guidelines can be drawn from the EU's MiCA regulation.  
• Workshops, online resources, and campaigns are some examples of initiatives aimed at improving consumer awareness about digital assets, benefits and associated risks that should be implemented. Partnerships with global fintech firms will provide a great opportunity  to learn best practices.

Conclusion

India is positioned at a critical juncture with respect to the debate on digital assets. The challenge which lies ahead is one of balancing innovation with effective regulation. The introduction of the Central Bank Digital Currency (CBDC) and the development of new policies signal a willingness on the part of the regulators to embrace the digital future. In contrast, issues like volatility, fraud, and regulatory compliance continue to pose hurdles. By drawing insights from global frameworks and strengthening ties through international forums, India can pave the way for a secure and dynamic digital asset ecosystem. Embracing strategic measures such as regulatory sandboxes and transparent tax guidelines will not only protect investors but also unlock the immense potential of digital assets, propelling India into a new era of financial innovation and inclusivity.

References

• https://www.weforum.org/agenda/2024/10/different-countries-navigating-uncertainty-digital-asset-regulation-election-year/ 
• https://www.acfcs.org/eu-passes-landmark-crypto-regulation 
• https://www.indiabudget.gov.in/budget2022-23/doc/Finance_Bill.pdf 
• https://www.weforum.org/agenda/2024/10/different-countries-navigating-uncertainty-digital-asset-regulation-election-year/
• https://www3.weforum.org/docs/WEF_Digital_Assets_Regulation_2024.pdf 

‍

Introduction

Generative AI models are significant consumers of computational resources and energy required for training and running models. While AI is being hailed as a game-changer, however underneath the shiny exterior, cracks are present which significantly raises concerns for its environmental impact. The development, maintenance, and disposal of AI technology all come with a large carbon footprint. The energy consumption of AI models, particularly large-scale models or image generation systems, these models rely on data centers powered by electricity, often from non-renewable sources, which exacerbates environmental concerns and contributes to substantial carbon emissions.

As AI adoption grows, improving energy efficiency becomes essential. Optimising algorithms, reducing model complexity, and using more efficient hardware can lower the energy footprint of AI systems. Additionally, transitioning to renewable energy sources for data centers can help mitigate their environmental impact. There is a growing need for sustainable AI development, where environmental considerations are integral to model design and deployment.

A breakdown of how generative AI contributes to environmental risks and the pressing need for energy efficiency:

• Gen AI during the training phase has high power consumption, when vast amounts of computational power which is often utilising extensive GPU clusters for weeks or at times even months, consumes a substantial amount of electricity. Post this phase, the inference phase where the deployment of these models takes place for real-time inference, can be energy-extensive especially when we take into account the millions of users of Gen AI.
• The main source of energy used for training and deploying AI models often comes from non-renewable sources which then contribute to the carbon footprint. The data centers where the computations for Gen AI take place are a significant source of carbon emissions if they rely on the use of fossil fuels for their energy needs for the training and deployment of the models. According to a study by MIT, training an AI can produce emissions that are equivalent to around 300 round-trip flights between New York and San Francisco. According to a report by Goldman Sachs, Data Companies will use 8% of US power by 2030, compared to 3% in 2022 as their energy demand grows by 160%.
• The production and disposal of hardware (GPUs, servers) necessary for AI contribute to environmental degradation. Mining for raw materials and disposing of electronic waste (e-waste) are additional environmental concerns. E-waste contains hazardous chemicals, including lead, mercury, and cadmium, that can contaminate soil and water supplies and endanger both human health and the environment. 

Efforts by the Industry to reduce the environmental risk posed by Gen AI 

There are a few examples of how companies are making efforts to reduce their carbon footprint, reduce energy consumption and overall be more environmentally friendly in the long run. Some of the efforts are as under:

• Google's TPUs in particular the Google Tensor are designed specifically for machine learning tasks and offer a higher performance-per-watt ratio compared to traditional GPUs, leading to more efficient AI computations during the shorter periods requiring peak consumption. 
• Researchers at Microsoft, for instance, have developed a so-called “1 bit” architecture that can make LLMs 10 times more energy efficient than the current leading system. This system simplifies the models’ calculations by reducing the values to 0 or 1, slashing power consumption but without sacrificing its performance.
• OpenAI has been working on optimizing the efficiency of its models and exploring ways to reduce the environmental impact of AI and using renewable energy as much as possible including the research into more efficient training methods and model architectures.

Policy Recommendations

We advocate for the sustainable product development process and press the need for Energy Efficiency in AI Models to counter the environmental impact that they have. These improvements would not only be better for the environment but also contribute to the greater and sustainable development of Gen AI.  Some suggestions are as follows:

• AI needs to adopt a Climate justice framework which has been informed by a diverse context and perspectives while working in tandem with the UN’s (Sustainable Development Goals) SDGs.
• Working and developing more efficient algorithms that would require less computational power for both training and inference can reduce energy consumption. Designing more energy-efficient hardware, such as specialized AI accelerators and next-generation GPUs, can help mitigate the environmental impact. 
• Transitioning to renewable energy sources (solar, wind, hydro) can significantly reduce the carbon footprint associated with AI. The World Economic Forum (WEF) projects that by 2050, the total amount of e-waste generated will have surpassed 120 million metric tonnes.
• Employing techniques like model compression, which reduces the size of AI models without sacrificing performance, can lead to less energy-intensive computations. Optimized models are faster and require less hardware, thus consuming less energy.
• Implementing scattered learning approaches, where models are trained across decentralized devices rather than centralized data centers, can lead to a better distribution of energy load evenly and reduce the overall environmental impact.
• Enhancing the energy efficiency of data centers through better cooling systems, improved energy management practices, and the use of AI for optimizing data center operations can contribute to reduced energy consumption.

Final Words

The UN Sustainable Development Goals (SDGs) are crucial for the AI industry just as other industries as they guide responsible innovation. Aligning AI development with the SDGs will ensure ethical practices, promoting sustainability, equity, and inclusivity. This alignment fosters global trust in AI technologies, encourages investment, and drives solutions to pressing global challenges, such as poverty, education, and climate change, ultimately creating a positive impact on society and the environment. The current state of AI is that it is essentially utilizing enormous power and producing a product not efficiently utilizing the power it gets. AI and its derivatives are stressing the environment in such a manner which if it continues will affect the clean water resources and other non-renewable power generation sources which contributed to the huge carbon footprint of the AI industry as a whole.  

References

• https://cio.economictimes.indiatimes.com/news/artificial-intelligence/ais-hunger-for-power-can-be-tamed/111302991
• https://earth.org/the-green-dilemma-can-ai-fulfil-its-potential-without-harming-the-environment/ 
• https://www.technologyreview.com/2019/06/06/239031/training-a-single-ai-model-can-emit-as-much-carbon-as-five-cars-in-their-lifetimes/
• https://www.scientificamerican.com/article/ais-climate-impact-goes-beyond-its-emissions/ ‍
• https://insights.grcglobalgroup.com/the-environmental-impact-of-ai/

Executive Summary:

This report deals with a recent cyberthreat that took the form of a fake message carrying a title of India Post which is one of the country’s top postal services. The scam alerts recipients to the failure of a delivery due to incomplete address information and requests that they click on a link (http://iydc[.]in/u/5c0c5939f) to confirm their address. Privacy of the victims is compromised as they are led through a deceitful process, thereby putting their data at risk and compromising their security. It is highly recommended that users exercise caution and should not click on suspicious hyperlinks or messages.

False Claim:

The fraudsters send an SMS stating the status of delivery of an India Mail package which could not be delivered due to incomplete address information. They provide a deadline of 12 hours for recipients to confirm their address by clicking on the given link (http://iydc[.]in/u/5c0c5939f). This misleading message seeks to fool people into disclosing personal information or compromising the security of their device. 

‍

‍

The Deceptive Journey:

• First Contact: The SMS is sent and is claimed to be from India Post, informs users that due to incomplete address information the package could not be delivered.

• Recipients are then expected to take action by clicking on the given link (http://iydc[.]in/u/5c0c5939f) to update the address. The message creates a panic within the recipient as they have only 12 hours to confirm their address on the suspicious link.

• Click the Link: Inquiring or worried recipients click on the link.

• User Data: When the link is clicked, it is suspected to  launch possible remote scripts in the background and collect personal information from users.

• Device Compromise: Occasionally, the website might also try to infect the device with malware or take advantage of security flaws.

The Analysis:

• Phishing Technique: The scam allures its victims with a phishing technique and poses itself as the India Post Team, telling the recipients to click on a suspicious link to confirm the address as the delivery package can’t be delivered due to incomplete address. 
• Fake Website Creation: Victims are redirected to a fraudulent website when they click on the link (http://iydc[.]in/u/5c0c5939f) to update their address.
• Background Scripts: Scripts performing malicious operations such as stealing the visitor information, distributing viruses are suspected to be running in the background. This script can make use of any vulnerability in the device/browser of the user to extract more info or harm the system security.
• Risk of Data Theft: This type of fraud has the potential to steal the data involved because it lures the victims into giving their personal details by creating fake urgency. The threat actors  can use it for various illegal purposes such as financial fraud, identity theft and other criminal purposes in future.
• Domain Analysis: The iydc.in domain was registered on the 5th of April, 2024, just a short time ago. Most of the fraud domains that are put up quickly and utilized in criminal activities are usually registered in a short time.
• Registrar: GoDaddy.com, LLC, a reputable registrar, through which  the domain is registered. 
• DNS: Chase.ns.cloudflare.com and delilah.ns.cloudflare.com are the name servers used by Cloudflare to manage domain name resolution. 
• Registrant: Apart from the fact that it is in Thailand, not much is known about the registrant probably because of using the privacy reduction plugins. 

• Domain Name: iydc.in
• Registry Domain ID: DB3669B210FB24236BF5CF33E4FEA57E9-IN
• Registrar URL: www.godaddy.com
• Registrar: GoDaddy.com, LLC
• Registrar IANA ID: 146
• Updated Date: 2024-04-10T02:37:06Z
• Creation Date: 2024-04-05T02:37:05Z (Registered in very recent time)
• Registry Expiry Date: 2025-04-05T02:37:05Z
• Registrant State/Province: errww
• Registrant Country: TH (Thailand)
• Name Server: delilah.ns.cloudflare.com
• Name Server: chase.ns.cloudflare.com

Note: Cybercriminals used Cloudflare technology to mask the actual IP address of the fraudulent website.

CyberPeace Advisory:

• Do not open the messages received from social platforms in which you think that such messages are suspicious or unsolicited. In the beginning, your own discretion can become your best weapon.
• Falling prey to such scams could compromise your entire system, potentially granting unauthorized access to your microphone, camera, text messages, contacts, pictures, videos, banking applications, and more. Keep your cyber world safe against any attacks.
• Never reveal sensitive data such as your login credentials and banking details to entities where you haven't validated as reliable ones.
• Before sharing any content or clicking on links within messages, always verify the legitimacy of the source. Protect not only yourself but also those in your digital circle.
• Verify the authenticity of alluring offers before taking any action.
  

Conclusion:

The India Post delivery scam is an example of fraudulent activity that uses the name of trusted postal services to trick people. The campaign is initiated by using deceptive texts and fake websites that will trick the recipients into giving out their personal information which can later be used for identity theft, financial losses or device security compromise. Technical analysis shows the sophisticated tactics used by fraudsters through various techniques such as phishing, data harvesting scripts and the creation of fraudulent domains with less registration history etc.  While encountering such messages, it's important to verify their authenticity from official sources and take proactive measures to protect both your personal information and devices from cyber threats. People can reduce the risk of falling for online scams by staying informed and following cybersecurity best practices.

‍