MeitY Issued an Advisory Regulating AI

Introduction

On the precipice of a new domain of existence, the metaverse emerges as a digital cosmos, an expanse where the horizon is not sky, but a limitless scope for innovation and imagination. It is a sophisticated fabric woven from the threads of social interaction, leisure, and an accelerated pace of technological progression. This new reality, a virtual landscape stretching beyond the mundane encumbrances of terrestrial life, heralds an evolutionary leap where the laws of physics yield to the boundless potential inherent in our creativity. Yet, the dawn of such a frontier does not escape the spectre of an age-old adversary—financial crime—the shadow that grows in tandem with newfound opportunity, seeping into the metaverse, where crypto-assets are no longer just an alternative but the currency du jour, dazzling beacons for both legitimate pioneers and shades of illicit intent.

The metaverse, by virtue of its design, is a canvas for the digital repaint of society—a three-dimensional realm where the lines between immersive experiences and entertainment blur, intertwining with surreal intimacy within this virtual microcosm. Donning headsets like armor against the banal, individuals become avatars; digital proxies that acquire the ability to move, speak, and perform an array of actions with an ease unattainable in the physical world. Within this alternative reality, users navigate digital topographies, with experiences ranging from shopping in pixelated arcades to collaborating in virtual offices; from witnessing concerts that defy sensory limitations to constructing abodes and palaces from mere codes and clicks—an act of creation no longer beholden to physicality but to the breadth of one's ingenuity.

The Crypto Assets

The lifeblood of this virtual economy pulsates through crypto-assets. These digital tokens represent value or rights held on distributed ledgers—a technology like blockchain, which serves as both a vault and a transparent tapestry, chronicling the pathways of each digital asset. To hop onto the carousel of this economy requires a digital wallet—a storeroom and a gateway for acquisition and trade of these virtual valuables. Cryptocurrencies, with NFTs—Non-fungible Tokens—have accelerated from obscure digital curios to precious artifacts. According to blockchain analytics firm Elliptic, an astonishing figure surpassing US$100 million in NFTs were usurped between July 2021 and July 2022. This rampant heist underlines their captivating allure for virtual certificates. Empowers do not just capture art, music, and gaming, but embody their very soul.

Yet, as the metaverse burgeons, so does the complexity and diversity of financial transgressions. From phishing to sophisticated fraud schemes, criminals craft insidious simulacrums of legitimate havens, aiming to drain the crypto-assets of the unwary. In the preceding year, a daunting figure rose to prominence—the vanishing of US$14 billion worth of crypto-assets, lost to the abyss of deception and duplicity. Hence, social engineering emerges from the shadows, a sort of digital chicanery that preys not upon weaknesses of the system, but upon the psychological vulnerabilities of its users—scammers adorned in the guise of authenticity, extracting trust and assets with Machiavellian precision.

The New Wave of Fincrimes 

Extending their tentacles further, perpetrators of cybercrime exploit code vulnerabilities, engage in wash trading, obscuring the trails of money laundering, meander through sanctions evasion, and even dare to fund activities that send ripples of terror across the physical and virtual divide. The intricacies of smart contracts and the decentralized nature of these worlds, designed to be bastions of innovation, morph into paths paved for misuse and exploitation. The openness of blockchain transactions, the transparency that should act as a deterrent, becomes a paradox, a double-edged sword for the law enforcement agencies tasked with delineating the networks of faceless adversaries.

Addressing financial crime in the metaverse is Herculean labour, requiring an orchestra of efforts—harmonious, synchronised—from individual users to mammoth corporations, from astute policymakers to vigilant law enforcement bodies. Users must furnish themselves with critical awareness, fortifying their minds against the siren calls that beckon impetuous decisions, spurred by the anxiety of falling behind. Enterprises, the architects and custodians of this digital realm, are impelled to collaborate with security specialists, to probe their constructs for weak seams, and to reinforce their bulwarks against the sieges of cyber onslaughts. Policymakers venture onto the tightrope walk, balancing the impetus for innovation against the gravitas of robust safeguards—a conundrum played out on the global stage, as epitomised by the European Union's strides to forge cohesive frameworks to safeguard this new vessel of human endeavour.

The Austrian Example 

Consider the case of Austria, where the tapestry of laws entwining crypto-assets spans a gamut of criminal offences, from data breaches to the complex webs of money laundering and the financing of dark enterprises. Users and corporations alike must become cartographers of local legislation, charting their ventures and vigilances within the volatile seas of the metaverse.

Upon the sands of this virtual frontier, we must not forget: that the metaverse is more than a hive of bits and bandwidth. It crystallises our collective dreams, echoes our unspoken fears, and reflects the range of our ambitions and failings. It stands as a citadel where the ever-evolving quest for progress should never stray from the compass of ethical pursuit. The cross-pollination of best practices, and the solidarity of international collaboration, are not simply tactics—they are imperatives engraved with the moral codes of stewardship, guiding us to preserve the unblemished spirit of the metaverse.

Conclusion

The clarion call of the metaverse invites us to venture into its boundless expanse, to savour its gifts of connection and innovation. Yet, on this odyssey through the pixelated constellations, we harness vigilance as our star chart, mindful of the mirage of morality that can obfuscate and lead astray. In our collective pursuit to curtail financial crime, we deploy our most formidable resource—our unity—conjuring a bastion for human ingenuity and integrity. In this, we ensure that the metaverse remains a beacon of awe, safeguarded against the shadows of transgression, and celebrated as a testament to our shared aspiration to venture beyond the realm of the possible, into the extraordinary.

References 

• https://www.wolftheiss.com/insights/financial-crime-in-the-metaverse-is-real/ 
• https://gnet-research.org/2023/08/16/meta-terror-the-threats-and-challenges-of-the-metaverse/
• https://shuftipro.com/blog/the-rising-concern-of-financial-crimes-in-the-metaverse-aml-screening-as-a-solution/

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Introduction

Romance scams have been rised in India. A staggering 66 percent of individuals in India have been ensnared by the siren songs of deceitful online dating schemes. These are not the attempts of yesteryears but rather a new breed of scams, seamlessly weaving the threads of traditional deceit with the sinew of cutting-edge technologies such as generative AI and deep fakes. A report by Tenable highlights the rise of romance scams in India, which now combine traditional tactics with advanced technologies like generative AI and deepfakes. Over 69% of Indians struggle to distinguish between artificial and authentic human voices. Scammers are using celebrity impersonations and platforms like Facebook to lure victims into a false sense of security.

The Romance Scam

A report by Tenable, the exposure management company, illuminates the disturbing evolution of these romance scams. It reveals a reality: AI-generated deep lakes have attained a level of sophistication where an astonishing 69 percent of Indians confess to struggling to discern between artificial and authentic human voices. This technological prowess has armed scammers with the tools to craft increasingly convincing personas, enabling them to perpetrate their nefarious acts with alarming success.

In 2023 alone, 43 percent of Indians reported falling victim to AI voice scams, with a staggering 83 percent of those targeted suffering financial loss. The scammers, like puppeteers, manipulate their digital marionettes with a deftness that is both awe-inspiring and horrifying. They have mastered the art of impersonating celebrities and fabricating personas that resonate with their targets, particularly preying on older demographics who may be more susceptible to their charms.

Social media platforms, which were once heralded as the town squares of the 21st century, have unwittingly become fertile grounds for these fraudulent activities. They lure victims into a false sense of security before the scammers orchestrate their deceitful symphonies. Chris Boyd, a staff research engineer at Tenable, issues a stern warning against the lure of private conversations, where the protective layers of security are peeled away, leaving individuals exposed to the machinations of these digital charlatans.

The Vulnerability of Individuals 

The report highlights the vulnerability of certain individuals, especially those who are older, widowed, or experiencing memory loss. These individuals are systematically targeted by heartless criminals who exploit their longing for connection and companionship. The importance of scrutinising requests for money from newfound connections is underscored, as is the need for meticulous examination of photographs and videos for any signs of manipulation or deceit.

'Increasing awareness and maintaining vigilance are our strongest weapons against these heartless manipulations, 'safeguarding love seekers from the treacherous web of AI-enhanced deception.'

The landscape of love has been irrevocably altered by the prevalence of smartphones and the deep proliferation of mobile internet. Finding love has morphed into a digital odyssey, with more and more Indians turning to dating apps like Tinder, Bumble, and Hinge. Yet, as with all technological advancements, there lurks a shadowy underbelly. The rapid adoption of dating sites has provided potential scammers with a veritable goldmine of opportunity.

It is not uncommon these days to hear tales of individuals who have lost their life savings to a person they met on a dating site or who have been honey-trapped and extorted by scammers on such platforms. A new study, titled 'Modern Love' and published by McAfee ahead of Valentine's Day 2024, reveals that such scams are rampant in India, with 39 percent of users reporting that their conversations with a potential love interest online turned out to be with a scammer.

The study also found that 77 percent of Indians have encountered fake profiles and photos that appear AI-generated on dating websites or apps or on social media, while 26 percent later discovered that they were engaging with AI-generated bots rather than real people. 'The possibilities of AI are endless, and unfortunately, so are the perils,' says Steve Grobman, McAfee’s Chief Technology Officer.

Steps to Safeguard 

Scammers have not limited their hunting grounds to dating sites alone. A staggering 91 percent of Indians surveyed for the study reported that they, or someone they know, have been contacted by a stranger through social media or text message and began to 'chat' with them regularly. Cybercriminals exploit the vulnerability of those seeking love, engaging in long and sophisticated attempts to defraud their victims.

McAfee offers some steps to protect oneself from online romance and AI scams:

• Scrutinise any direct messages you receive from a love interest via a dating app or social media.
• Be on the lookout for consistent, AI-generated messages which often lack substance or feel generic.
• Avoid clicking on any links in messages from someone you have not met in person.
• Perform a reverse image search of any profile pictures used by the person.
• Refrain from sending money or gifts to someone you haven’t met in person, even if they send you money first.
• Discuss your new love interest with your trusted friend. It can be easy to overlook red flags when you are hopeful and excited.

Conclusion

The path is fraught with illusions, and only by arming oneself with knowledge and scepticism can one hope to find true connection without falling prey to the mirage of deceit. As we navigate this treacherous terrain, let us remember that the most profound connections are often those that withstand the test of time and the scrutiny of truth.

References 

• https://www.businesstoday.in/technology/news/story/valentine-day-alert-deepfakes-genai-amplifying-romance-scams-in-india-warn-researchers-417245-2024-02-13
• https://www.indiatimes.com/amp/news/india/valentines-day-around-40-per-cent-indians-have-been-scammed-while-looking-for-love-online-627324.html
• https://zeenews.india.com/technology/valentine-day-deepfakes-in-romance-scams-generative-ai-in-scams-romance-scams-in-india-online-dating-scams-in-india-ai-voice-scams-in-india-cyber-security-in-india-2720589.html
• https://www.mcafee.com/en-us/consumer-corporate/newsroom/press-releases/2023/20230209.html

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About Global Commission on Internet Governance 

The Global Commission on Internet Governance was established in January 2014 with the goal of formulating and advancing a strategic vision for Internet governance going forward. Independent research on Internet-related issues of international public policy is carried out and supported over the two-year initiative. An official commission report with particular policy recommendations for the future of Internet governance will be made available as a result of this initiative.

There are two goals for the Global Commission on Internet Governance. First, it will encourage a broad and inclusive public discussion on how Internet governance will develop globally. Second, through its comprehensive policy-oriented report and the subsequent marketing of this final report, the Global Commission on Internet Governance will present its findings to key stakeholders at major Internet governance events.‍

‍The Internet: exploring the world wide web and the deep web

The Internet can be thought of as a vast networking infrastructure, or network of networks. By linking millions of computers worldwide, it creates a network that allows any two computers, provided they are both online, to speak with one another.

The Hypertext Transfer Protocol is the only language spoken over the Internet and is used by the Web to transfer data. Email, which depends on File Transfer Protocol, Usenet newsgroups, Simple Mail Transfer Protocol, and instant messaging, is also used on the Internet—not the Web. Thus, even though it's a sizable chunk, the Web is only a part of the Internet [1]. In summary, the deep Web is the portion of the Internet that is not visible to the naked eye. It is stuff from the World Wide Web that isn't available on the main Web. Standard search engines cannot reach it. More than 500 times larger than the visible Web is this enormous subset of the Internet [1-2].

The Global Commission on Internet Governance will concentrate on four principal themes:

• Improving the legitimacy of government, including standards and methods for regulation;

• Promoting economic innovation and expansion, including the development of infrastructure, competition laws, and vital Internet resources; 

• Safeguarding online human rights, including establishing the idea of technological neutrality for rights to privacy, human rights, and freedom of expression;

• Preventing systemic risk includes setting standards for state behaviour, cooperating with law enforcement to combat cybercrime, preventing its spread, fostering confidence, and addressing disarmament-related issues.

Dark Web 

The part of the deep Web that has been purposefully concealed and is unreachable using conventional Web browsers is known as the "dark Web." Dark Web sites are a platform for Internet users who value their anonymity since they shield users from prying eyes and typically utilize encryption to thwart monitoring. The Tor network is a well-known source for content that may be discovered on the dark web. Only a unique Web browser known as the Tor browser is required to access the anonymous Tor network (Tor 2014). It was a technique for anonymous online communication that the US Naval Research Laboratory first introduced as The Onion Routing (Tor) project in 2002. Many of the functionality offered by Tor are also available on I2P, another network. On the other hand, I2P was intended to function as a network inside the Internet, with traffic contained within its boundaries. Better anonymous access to the open Internet is offered by Tor, while a more dependable and stable "network within the network" is provided by I2P [3].

Cybersecurity in the dark web

Cyber crime is not any different than crime in the real world — it is just executed in a new medium: “Virtual criminality’ is basically the same as the terrestrial crime with which we are familiar. To be sure, some of the manifestations are new. But a great deal of crime committed with or against computers differs only in terms of the medium. While the technology of implementation, and particularly its efficiency, may be without precedent, the crime is fundamentally familiar. It is less a question of something completely different than a recognizable crime committed in a completely different way [4].”

Dark web monitoring

The dark Web, in general, and the Tor network, in particular, offer a secure platform for cybercriminals to support a vast amount of illegal activities — from anonymous marketplaces to secure means of communication, to an untraceable and difficult to shut down infrastructure for deploying malware and botnets.

As such, it has become increasingly important for security agencies to track and monitor the activities in the dark Web, focusing today on Tor networks, but possibly extending to other technologies in the near future. Due to its intricate webbing and design, monitoring the dark Web will continue to pose significant challenges. Efforts to address it should be focused on the areas discussed below [5].

Hidden service directory of dark web

A domain database used by both Tor and I2P is based on a distributed system called a "distributed hash table," or DHT. In order for a DHT to function, its nodes must cooperate to store and manage a portion of the database, which takes the shape of a key-value store. Owing to the distributed character of the domain resolution process for hidden services, nodes inside the DHT can be positioned to track requests originating from a certain domain [6].

Conclusion

The deep Web, and especially dark Web networks like Tor (2004), offer bad actors a practical means of transacting in products anonymously and lawfully.

The absence of discernible activity in non-traditional dark web networks is not evidence of their nonexistence. As per the guiding philosophy of the dark web, the actions are actually harder to identify and monitor. Critical mass is one of the market's driving forces. It seems unlikely that operators on the black Web will require a great degree of stealth until the repercussions are severe enough, should they be caught. It is possible that certain websites might go down, have a short trading window, and then reappear, which would make it harder to look into them.

References

1. Ciancaglini, Vincenzo, Marco Balduzzi, Max Goncharov and Robert McArdle. 2013. “Deepweb and Cybercrime: It’s Not All About TOR.” Trend Micro Research Paper. October. 
2. Coughlin, Con. 2014. “How Social Media Is Helping Islamic State to Spread Its Poison.” The Telegraph, November 5. 
3. Dahl, Julia. 2014. “Identity Theft Ensnares Millions while the Law Plays Catch Up.” CBS News, July 14. 
4. Dean, Matt. 2014. “Digital Currencies Fueling Crime on the Dark Side of the Internet.” Fox Business, December 18.
5. Falconer, Joel. 2012. “A Journey into the Dark Corners of the Deep Web.” The Next Web, October 8. 
6. Gehl, Robert W. 2014. “Power/Freedom on the Dark Web: A Digital Ethnography of the Dark Web Social Network.” New Media & Society, October 15. http://nms.sagepub.com/content/early/2014/ 10/16/1461444814554900.full#ref-38.

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