New Criminal Laws to be Effective From 1st July 2024

Introduction

In this ever-evolving world of technology, cybercrimes and criminals continue to explore new and innovative methods to exploit and intimidate their victims. One of the recent shocking incidents has been reported from the city of Bharatpur, Rajasthan, where the cyber crooks organised a mock court session This complex operation, meant to induce fear and force obedience, exemplifies the daring and intelligence of modern hackers. In this blog article, we’ll go deeper into this concerning occurrence, delving into it to offer light on the strategies used and the ramifications for cybersecurity.to frighten their targets.

The Setup

The case was reported from Gopalgarh village in Bharatpur, Rajasthan, and has unfolded with a shocking twist -the father-son duo, Tahir Khan and his son Talim Khano — from Gopalgarh village in Bharatpur, Rajasthan, has been fooling people to gain their monetary gain by staging a mock court setting and recorded the proceedings to intimidate their victims into paying hefty sums. In the recent case, they have gained 2.69 crores through sextortion. the duo uses to trace their targets on social media platforms, blackmail them, and earn a hefty amount.

An official complaint was filed by a 69-year-old victim who was singled out through his social media accounts, his friends, and his posts Initially, they contacted the victim with a pre-recorded video featuring a nude woman, coaxing him into a compromising situation. As officials from the Delhi Crime Branch and the CBI, they threatened the victim, claiming that a girl had approached them intending to file a complaint against him. Later, masquerading as YouTubers, they threatened to release the incriminating video online. Adding to the charade, they impersonated a local MLA and presented the victim with a forged stamp paper alleging molestation charges. Eventually, posing as Delhi Crime Branch officials again, they demanded money to settle the case after falsely stating that they had apprehended the girl. To further manipulate the victim, the accused staged a court proceeding, recording it and subsequently sending it to him, creating the illusion that everything was concluded. This unique case of sextortion stands out as the only instance where the culprits went to such lengths, staging and recording a mock court to extort money.  Furthermore, it was discovered that the accused had fabricated a letter from the Delhi High Court, adding another layer of deception to their scheme.

The Investigation

The complaint was made in a cyber cell. After the complaint was filed, the investigation was made, and it was found that this case stands as one of the most significant sextortion incidents in the country. The father-son pair skillfully assumed five different roles, meticulously executing their plan, which included creating a simulated court environment. “We have also managed to recover Rs 25 lakh from the accused duo—some from their residence in Gopalgarh and the rest from the bank account where it was deposited.

The Tricks used by the duo
The father-son The setup in the fake court scene event was a meticulously built web of deception to inspire fear and weakness in the victim. Let’s look at the tricks the two used to fool the people.

• Social Engineering strategies: Cyber criminals are skilled at using social engineering strategies to acquire the trust of their victims. In this situation, they may have employed phishing emails or phone calls to get personal information about the victim. By appearing as respectable persons or organisations, the crooks tricked the victim into disclosing vital information, giving them weapons they needed to create a sense of trustworthiness.
• Making a False Narrative: To make the fictitious court scenario more credible, the cyber hackers concocted a captivating story based on the victim’s purported legal problems. They might have created plausible papers to give their plan authority, such as forged court summonses, legal notifications, or warrants. They attempted to create a sense of impending danger and an urgent necessity for the victim to comply with their demands by deploying persuasive language and legal jargon.
• Psychological Manipulation: The perpetrators of the fictitious court scenario were well aware of the power of psychological manipulation in coercing their victims. They hoped to emotionally overwhelm the victim by using fear, uncertainty, and the possible implications of legal action. The offenders probably used threats of incarceration, fines, or public exposure to increase the victim’s fear and hinder their capacity to think critically. The idea was to use desperation and anxiety to force the victim to comply.
• Use of Technology to Strengthen Deception: Technological advancements have given cyber thieves tremendous tools to strengthen their misleading methods. The simulated court scenario might have included speech modulation software or deep fake technology to impersonate the voices or appearances of legal experts, judges, or law enforcement personnel. This technology made the deception even more believable, blurring the border between fact and fiction for the victim.

The use of technology in cybercriminals’ misleading techniques has considerably increased their capacity to fool and influence victims. Cybercriminals may develop incredibly realistic and persuasive simulations of judicial processes using speech modulation software, deep fake technology, digital evidence alteration, and real-time communication tools. Individuals must be attentive, gain digital literacy skills, and practice critical thinking when confronting potentially misleading circumstances online as technology advances. Individuals can better protect themselves against the expanding risks posed by cyber thieves by comprehending these technological breakthroughs.

What to do?

Seeking Help and Reporting Incidents: If you or anyone you know is the victim of cybercrime or is fooled by cybercrooks. When confronted with disturbing scenarios such as the imitation court scene staged by cybercrooks, victims must seek help and act quickly by reporting the occurrence. Prompt reporting serves various reasons, including increasing awareness, assisting with investigations, and preventing similar crimes from occurring again. Victims should take the following steps:

• Contact your local law enforcement: Inform local legal enforcement about the cybercrime event. Provide them with pertinent incident facts and proof since they have the experience and resources to investigate cybercrime and catch the offenders involved.
• Seek Assistance from a Cybersecurity specialist: Consult a cybersecurity specialist or respected cybersecurity business to analyse the degree of the breach, safeguard your digital assets, and obtain advice on minimising future risks. Their knowledge and forensic analysis can assist in gathering evidence and mitigating the consequences of the occurrence.
• Preserve Evidence: Keep any evidence relating to the event, including emails, texts, and suspicious actions. Avoid erasing digital evidence, and consider capturing screenshots or creating copies of pertinent exchanges. Evidence preservation is critical for investigations and possible legal procedures.

Conclusion

The setting fake court scene event shows how cybercriminals would deceive and abuse their victims. These criminals tried to use fear and weakness in the victim through social engineering methods, the fabrication of a false narrative, the manipulation of personal information, psychological manipulation, and the use of technology. Individuals can better defend themselves against cybercrooks by remaining watchful and sceptical.

Introduction

In the labyrinthine world of digital currencies, a new chapter unfolds as India intensifies its scrutiny over the ethereal realm of offshore cryptocurrency exchanges. With nuance and determination that virtually mirrors the Byzantine complexities of the very currencies they seek to regulate, Indian authorities embark on a course of stringent oversight, bringing to the fore an ever-evolving narrative of control and compliance in the fintech sector. The government's latest manoeuvre—a directive to Apple Inc. to excise the apps of certain platforms, including the colossus Binance, from its App Store in India—signals a crescendo in the nation's efforts to rein in the unbridled digital bazaar that had hitherto thrived in a semi-autonomous expanse of cyberspace.

The directive, with ramifications as significant and intricate as the cryptographic algorithms that underpin the blockchain, stems from the Ministry of Electronics and Information Technology, which has cast eight exchanges, including Bitfinex, HTX, and Kucoin, into the shadows, rendering their apps as elusive as the Higgs boson in the vast App Store universe. The movement of these exchanges from visibility to obscurity in the digital storefront is cloaked in secrecy, with sources privy to this development remaining cloaked in anonymity, their identities as guarded as the cryptographic keys that secure blockchain transactions.

The Contention 

This escalation, however, did not manifest from the vacuum of the ether; it is the culmination of a series of precipitating actions that began unfolding on December 28th, when the Indian authorities unfurled a net over nine exchanges, ensnaring them with suspicions of malfeasance. The spectre of inaccessible funds, a byproduct of this entanglement, has since haunted Indian crypto traders, prompting a migration of deposits to local exchanges that operate within the nation's regulatory framework—a fortress against the uncertainties of the offshore crypto tempest.

The extent of the authorities' reach manifests further, beckoning Alphabet Inc.'s Google to follow in Apple's footsteps. Yet, in a display of the unpredictable nature of enforcement, the Google Play Store in India still played host to the very apps that Apple's digital Eden had forsaken as of a nondescript Wednesday afternoon, marked by the relentless march of time. The triad of power-brokers—Apple, Google, and India's technology ministry—has maintained a stance as enigmatic as the Sphinx, their communications as impenetrable as the vaults that secure the nation's precious monetary reserves.

Compounding the tightening of this digital noose, the Financial Intelligence Unit of India, a sentinel ever vigilant at the gates of financial propriety, unfurled a compliance show-cause notice to the nine offshore platforms, an ultimatum demanding they justify their elusive presence in Indian cyberspace. The FIU's decree echoed with clarity amidst the cacophony of regulatory overtures: these digital entities were tethered to operations sequestered in the shadows, skirting the reach of India's anti-money laundering edicts, their websites lingering in cyberspace like forbidden fruit, tantalisingly within reach yet potentially laced with the cyanide of non-compliance.

In this chaotic tableau of constraint and control, a glimmer of presence remains—only Bitstamp has managed to brave the regulatory storm, maintaining its presence on the Indian App Store, a lone beacon amid the turbulent sea of regimentation. Kraken, another leviathan of crypto depths, presented only its Pro version to the Indian connoisseurs of the digital marketplace. An aura of silence envelops industry giants such as Binance, Bitfinex, and KuCoin, their absence forming a void as profound as the dark side of the moon in the consciousness of Indian users. HTX, formerly known as Huobi, has announced a departure from Indian operations with the detached finality of a distant celestial body, cold and indifferent to the gravitational pull of India's regulatory orbit.

Compliances

In compliance with the provisions of the Money Laundering Act (PMLA) 2002 and the recent uproar on crypto assessment apps, Apple store finally removed these apps namely Binance and Kucoin from the store after receiving show cause notice. The alleged illegal operation and failure to comply with existing money laundering laws are major reasons for their removal. 

The Indian Narrative 

The overarching narrative of India's embrace of rigid oversight aligns with a broader global paradigm shift, where digital financial assets are increasingly subjected to the same degree of scrutiny as their physical analogues. The persistence in imposing anti-money laundering provisions upon the crypto sector reflects this shift, with India positioning its regulatory lens in alignment with the stars of international accountability. The preceding year bore witness to seismic shifts as Indian authorities imposed a tax upon crypto transactions, a move that precipitated a downfall in trading volumes, reminiscent of Icarus's fateful flight—hubris personified as his waxen appendages succumbed to the unrelenting kiss of the sun.

On a local scale, trading powerhouses lament the imposition of a 1% levy, colloquially known as Tax Deducted at Source. This fiscal shackle drove an exodus of Indian crypto traders into the waiting, seemingly benevolent arms of offshore financial Edens, absolved of such taxational rites. As Sumit Gupta, CEO of CoinDCX, recounted, this fiscal migration witnessed the haemorrhaging of revenue. His estimation that a staggering 95% of trading volume abandoned local shores for the tranquil harbours of offshore havens punctuates the magnitude of this phenomenon.

Conclusion 

Ultimately, the story of India's proactive clampdown on offshore crypto exchanges resembles a meticulously woven tapestry of regulatory ardour, financial prudence, and the inexorable progression towards a future where digital incarnations mirror the scrutinised tangibility of physical assets. It is a saga delineating a nation's valiant navigation through the tempestuous, cryptic waters of cryptocurrency, helming its ship with unwavering determination, with eyes keenly trained on the farthest reaches of the horizon. Here, amidst the fusion of digital and corporeal realms, India charts its destiny, setting its sails towards an inextricably linked future that promises to shape the contour of the global financial landscape.

References 

• https://www.business-standard.com/markets/cryptocurrency/govt-escalates-clampdown-on-offshore-crypto-venues-like-binance-report-124011000586_1.html
• https://www.cnbctv18.com/technology/india-escalates-clampdown-on-offshore-crypto-exchanges-like-binance-18763111.htm
• https://economictimes.indiatimes.com/tech/technology/centre-blocks-web-platforms-of-offshore-crypto-apps-binance-kucoin-and-others/articleshow/106783697.cms?from=mdr

Introduction

The role of ‘Small and Medium Enterprises’ (SMEs) in the economic and social development of the country is well established. The SME sector is often driven by individual creativity and innovation. With its contribution at  8% of the country’s GDP, and 45% of the manufactured output and 40% of its exports, SMEs provide employment to about 60 million persons through over 26 million enterprises producing over six thousand products. 

It would be an understatement to say that the SMEs sector in India is highly heterogeneous in terms of the size of the enterprises, variety of products and services produced and the levels of technology employed. With the SME sector booming across the country, these enterprises are contributing significantly to local, state, regional and national growth and feeding into India’s objectives of inclusive, sustainable development. 

As the digital economy expands, SMEs cannot be left behind and must integrate online to be able to grow and prosper. This development is not without its risks and cybersecurity concerns and digital threats like misinformation are fast becoming a pressing pain point for the SME sector. The unique challenge posed to SMEs by cyber threats is that while the negative consequences of digital risks are just as damaging for the SMEs as they are for larger industries, the former’s ability to counter these threats is not at par with the latter, owing to the limited nature of resources at their disposal. The rapid development of emerging technologies like artificial intelligence makes it easier for malicious actors to develop bots, deepfakes, or other forms of manipulated content that can steer customers away from small businesses and the consequences can be devastating. 

Misinformation is the sharing of inaccurate and misleading information, and the act can be both deliberate and unintentional. Malicious actors can use fake reviews, rumours, or false images to promote negative content or create backlash against a business’ brand and reputation. For a fledgling or growing enterprise, its credibility is a critical asset and any threat to the same is as much a cause for concern as any other operational hindrance. 

Relationship Building to Counter Misinformation

We live in a world that is dominated by brands. A brand should ideally inspire trust. It is the single most powerful and unifying characteristic that embodies an organisation's culture and values and once well-established, can create incremental value. Businesses report industry rumours where misinformation resulted in the devaluation of a product, sowing mistrust among customers, and negatively impacting the companies’ revenue. Mitigating strategies to counter these digital downsides can include implementing greater due diligence and basic cyber hygiene practices, like two-factor or multi-factor authentication, as well as open communication of one’s experiences in the larger professional and business networks. 

The loss of customer trust can be fatal for a business, and for an SME, the access to the scale of digital and other resources required to restore reputations may simply not be a feasible option. Creating your brand story is not just the selling pitch you give to customers and investors, but is also about larger qualitative factors such as your own motivation for starting the enterprise or the emotional connection your audience base enjoys with your organisation. The brand story is a mosaic of multiple tangible and intangible elements that all come together to determine how the brand is perceived by its various stakeholders. Building a compelling and fortified brand story which resonates deeply with people is an important step in developing a robust reputation. It can help innoculate against several degrees of misinformation and malicious attempts and ensure that customers continue to place their faith in the brand despite attempts to hurt this dynamic.

Engaging with the target audience, ie, the customer base is part of an effective marketing tool and misinformation inoculation strategy. SMEs should also continuously assess their strategies, adapt to market changes, and remain agile in their approach to stay competitive and relevant in today's dynamic business environment. These strategies will lead to greater customer engagement through the means of feedback, reviews and surveys which help in building trust and loyalty. Innovative and dynamic customer service engages the target audience and helps in staying in the competition and being relevant.

Crisis Management and Response

Having a crisis management strategy is an important practice for all SMEs and should be mandated for better policy implementation. Businesses need greater due diligence and basic cyber hygiene practices, like two-factor authentication, essential compliances, strong password protocols, transparent disclosure, etc. 

The following steps should form part of a crisis management and response strategy:

• Assessing the damage by identifying the misinformation spread and its impact is the first step.  
• Issuing a response in the form of a public statement by engaging the media should precede legal action. 
• Two levels of communication need to take place in response to a misinformation attack. The first tier is internal, to the employees and it should clarify the implications of the incident and the organisation’s response plan. The other is aimed at customers via direct outreach to clarify the situation and provide accurate information in regard to the matter.  If required the employees can be provided training related to the handling of the customer enquiries regarding the misinformation.
• The digital engagement of the enterprise should be promptly updated and social media platforms and online communications must address the issue and provide clarity and factual information. 
• Immediate action must include a plan to rebuild reputations and trust by ensuring customers of the high quality of products and services. The management should seek customer feedback and show commitment to improving processes and transparency. Sharing positive testimonials and stories of satisfied customers can also help at this stage. 
• Engaging with the community and collaborating with organisations is also an important part of crisis management.

While these steps are for rebuilding and crisis management, further steps also need to be taken:

• Monitoring customer sentiment and gauging the effectiveness of the efforts taken is also necessary. And if required, strategic adjustments can be made in response to the evolving circumstances. 
• Depending on the severity of the impact, management may choose to engage the professional help of PR consultants and crisis management experts to develop comprehensive recovery plans and help navigate the situation.
• A long-term strategy which focuses on building resilience against future attacks is important. Along with this, engaging in transparency and proactive communication with stakeholders is a must.

Legal and Ethical Considerations

SMEs administrators must prioritise ethical market practices and appreciate that SMEs are subject to laws which deal with defamation, intellectual property rights- trademark and copyright infringement in particular, data protection and privacy laws and consumer protection laws. Having the knowledge of these laws and ensuring that there is no infringement upon the rights of other enterprises or their consumers is integral in order to continue engaging in business legally. 

Ethical and transparent business conduct includes clear and honest communication and proactive public redressal mechanisms in the event of misinformation or mistakes. These efforts go a long way towards building trust and accountability. 

Proactive public engagement is an important step in building relationships. SMEs can engage with the community where they conduct their business through outreach programs and social media engagement. Efforts to counter misinformation through public education campaigns that alert customers and other stakeholders about misinformation serve the dual purpose of countering misinformation and creating deep community ties. SME administrators should monitor content and developments in their markets and sectors to ensure that their marketing practices are ethical and not creating or spreading misinformation, be it in the form of active sensationalising of existing content or passive dissemination of misinformation created by others. Fact-checking tools and expert consultations can help address and prevent a myriad of problems and should be incorporated into everyday operations.

Conclusion

Developing strong cybersecurity protocols, practising basic digital hygiene and ensuring regulatory compliances are crucial to ensure that a business not only survives but also thrives. Therefore, a crisis management plan and trust-building along with ethical business and legal practices go a long way in ensuring the future of SMEs.  In today's digital landscape, misinformation is pervasive, and trust has become a cornerstone of successful business operations. It is the bedrock of a resilient and successful SME. By implementing and continuously improving trust-building efforts, businesses can not only navigate the challenges of misinformation but also create lasting value for their customers and stakeholders. Prioritising trust ensures long-term growth and sustainability in an ever-evolving digital landscape.

References 

• https://SME.gov.in/sites/default/files/SME-Strategic-Action-Plan.pdf 
• https://carnegieendowment.org/research/2024/01/countering-disinformation-effectively-an-evidence-based-policy-guide?lang=en 
• https://dcSME.gov.in/Report%20of%20Expert%20Committee%20on%20SMEs%20-%20The%20U%20K%20Sinha%20Committee%20constitutes%20by%20RBI.pdf 

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