#Fact Old image of Hindu Priest with Donald trump at White house goes viral as recent.

What are Decentralised Autonomous Organizations (DAOs)?

A Decentralised Autonomous Organisation or a DAO, is a unique take on democracy on the blockchain. It is a set of rules encoded into a self-executing contract (also known as a smart contract) that operates autonomously on a blockchain system. A DAO imitates a traditional company, although, in its more literal sense, it is a contractually created entity. In theory, DAOs have no centralised authority in making decisions for the system; it is a communally run system whereby all decisions (be it for internal governance or for the development of the blockchain system) are voted upon by the community members. DAOs are primarily characterised by a decentralised form of operation, where there is no one entity, group or individual running the system. They are self-sustaining entities, having their own currency, economy and even governance, that do not depend on a group of individuals to operate. Blockchain systems, especially DAOs are characterised by pure autonomy created to evade external coercion or manipulation from sovereign powers. DAOs follow a mutually created, agreed set of rules created by the community, that dictates all actions, activities, and participation in the system’s governance. There may also be provisions that regulate the decision-making power of the community.

Ethereum’s DAO’s White Paper described DAO as “The first implementation of a [DAO Entity] code to automate organisational governance and decision making.” Can be used by individuals working together collaboratively outside of a traditional corporate form.  It can also be used by a registered corporate entity to automate formal governance rules contained in corporate bylaws or imposed by law.”  The referred white paper proposes an entity that would use smart contracts to solve governance issues inherent in traditional corporations.  DAOs attempt to redesign corporate governance with blockchain such that contractual terms are “formalised, automated and enforced using software.”

Cybersecurity threats under DAOs

While DAOs offer increased transparency and efficiency, they are not immune to cybersecurity threats. Cybersecurity risks in DAO, primarily in governance, stem from vulnerabilities in the underlying blockchain technology and the DAO's smart contracts. Smart contract exploits, code vulnerabilities, and weaknesses in the underlying blockchain protocol can be exploited by malicious actors, leading to unauthorised access, fund manipulations, or disruptions in the governance process. Additionally, DAOs may face challenges related to phishing attacks, where individuals are tricked into revealing sensitive information, such as private keys, compromising the integrity of the governance structure. As DAOs continue to evolve, addressing and mitigating cybersecurity threats is crucial to ensuring the trust and reliability of decentralised governance mechanisms.

Centralisation/Concentration of Power

DAOs today actively try to leverage on-chain governance, where any governance votes or transactions are directly taken on the blockchain. But such governance is often plutocratic in nature, where the wealthy hold influences, rather than democracies, since those who possess the requisite number of tokens are only allowed to vote and each token staked implies that many numbers of votes emerge from the same individual. This concentration of power in the hands of “whales” often creates disadvantages for the newer entrants into the system who may have an in-depth background but lack the funds to cast a vote. Voting, presently in the blockchain sphere, lacks the requisite concept of “one man, one vote” which is critical in democratic societies.

Smart contract vulnerabilities and external threats

Smart contracts, self-executing pieces of code on a blockchain, are integral to decentralised applications and platforms. Despite their potential, smart contracts are susceptible to various vulnerabilities such as coding errors, where mistakes in the code can lead to funds being locked or released erroneously. Some of them have been mentioned as follows;

Smart Contracts are most prone to re-entrance attacks whereby an untrusted external code is allowed to be executed in a smart contract. This scenario occurs when a smart contract invokes an external contract, and the external contract subsequently re-invokes the initial contract. This sequence of events can lead to an infinite loop, and a reentrancy attack is a tactic exploiting this vulnerability in a smart contract. It enables an attacker to repeatedly invoke a function within the contract, potentially creating an endless loop and gaining unauthorised access to funds.

Additionally, smart contracts are also prone to oracle problems. Oracles refer to third-party services or mechanisms that provide smart contracts with real-world data. Since smart contracts on blockchain networks operate in a decentralised, isolated environment, they do not have direct access to external information, such as market prices, weather conditions, or sports scores. Oracles bridge this gap by acting as intermediaries, fetching and delivering off-chain data to smart contracts, enabling them to execute based on real-world conditions. The oracle problem within blockchain pertains to the difficulty of securely incorporating external data into smart contracts. The reliability of external data poses a potential vulnerability, as oracles may be manipulated or provide inaccurate information. This challenge jeopardises the credibility of blockchain applications that rely on precise and timely external data.

Sybil Attack: A Sybil attack involves a single node managing multiple active fake identities, known as Sybil identities, concurrently within a peer-to-peer network. The objective of such an attack is to weaken the authority or influence within a trustworthy system by acquiring the majority of control in the network. The fake identities are utilised to establish and exert this influence. A successful Sybil attack allows threat actors to perform unauthorised actions in the system.

Distributed Denial of Service Attacks: A Distributed Denial of Service (DDoS) attack is a malicious attempt to disrupt the regular functioning of a network, service, or website by overwhelming it with a flood of traffic. In a typical DDoS attack, multiple compromised computers or devices, often part of a botnet (a network of infected machines controlled by a single entity), are used to generate a massive volume of requests or data traffic. The targeted system becomes unable to respond to legitimate user requests due to the excessive traffic, leading to a denial of service.

Conclusion

Decentralised Autonomous Organisations (DAOs) represent a pioneering approach to governance on the blockchain, relying on smart contracts and community-driven decision-making. Despite their potential for increased transparency and efficiency, DAOs are not immune to cybersecurity threats. Vulnerabilities in smart contracts, such as reentrancy attacks and oracle problems, pose significant risks, and the concentration of voting power among wealthy token holders raises concerns about democratic principles. As DAOs continue to evolve, addressing these challenges is essential to ensuring the resilience and trustworthiness of decentralised governance mechanisms. Efforts to enhance security measures, promote inclusivity, and refine governance models will be crucial in establishing DAOs as robust and reliable entities in the broader landscape of blockchain technology.

References:

‍https://www.imperva.com/learn/application-security/sybil-attack/

‍https://www.tripwire.com/state-of-security/blockchain-security-understanding-vulnerabilities-and-mitigating-risks

‍https://medium.com/@RedStone_Finance/the-oracle-problem-and-its-implications-for-blockchains-c0c0ad9cf5a7

‍https://www.linkedin.com/posts/satish-kulkarni-bb96193_what-are-cybersecurity-risk-to-dao-and-how-activity-7048286955645677568-B3pV/ https://www.geeksforgeeks.org/what-is-ddosdistributed-denial-of-service/ Report of Investigation Pursuant to Section 21 (a) of the Securities Exchange Act of 1934: The DAO, Securities and Exchange Board, Release No. 81207/ July 25, 2017

‍https://www.sec.gov/litigation/investreport/34-81207.pdf https://www.legalserviceindia.com/legal/article-10921-blockchain-based-decentralized-autonomous-organizations-daos-.html

Introduction

The Supreme Court of India recently ruled that telecom companies cannot be debarred from reissuing the deactivated numbers to a new subscriber. Notably, such reallocation of deactivated numbers is allowed only after the expiration of the period of 90 days. The Apex Court of India also mentioned that it is the responsibility of the user to delete their associated data with their number or any WhatsApp account data to ensure privacy. The  Centre has recently also blocked 22 apps which were part of unlawful operations including betting and money laundering. Meanwhile, in the digital landscape, the Intervention of legislature and judiciary is playing a key role in framing policies or coming up with guidelines advocating for a true cyber-safe India.  The government initiatives are encouraging the responsible use of technologies and Internet-availed services. 

Supreme Court stated that  telecom companies cannot be barred from reissuing deactivated numbers

Taking note of a petition before the Supreme Court of India, seeking direction from the Telecom Regulatory Authority of India (TRAI) to instruct mobile service providers to stop issuing deactivated mobile numbers, the Apex Court dismissed it by stating that mobile service providers in India are allowed to allocate the deactivated numbers to new users or subscribers but only after 90 days from the deactivation of the number. 

A concern of Breach of Confidential Data

The Court further stated, “It is for the earlier subscriber to take adequate steps to ensure that privacy is maintained.” stating that it is the responsibility of the user to delete their WhatsApp account attached to the previous phone number and erase their data. The Court further added that users need to be aware of the Supreme Court ruling that once the number is deactivated for non-use and disconnection, it can not be reallocated before the expiry of the 90-day period of such deactivation. However, after the allotted time passes, such reallocation of numbers to a new user is allowed.   

MEITY issued blocking orders against 22 illegal betting apps & websites

The government of India has been very critical in safeguarding Indian cyberspace by banning and blocking various websites and apps that have been operating illegally by scamming/dupping people of huge sums of money and also committing cyber crimes like data breaches. In recent developments, the Ministry of Electronic and Information Technology (Meity), on November 5, 2023, banned 22 apps including Mahadev Book and Reddyannaprestopro. The Centre has taken this decision on recommendations from the Enforcement Directorate (ED). ED raids on the Mahadev book app in Chattisgarh also revealed unlawful operations. This investigation has been underway for the past few months by the ED.

Applicable laws to prevent money laundering and the power of government to block such websites and apps

On the other hand, the Prevention of Money Laundering Act (PMLA) 2002 is a legislation already in place which aims to prevent and prosecute cases of money laundering. The government also has the power to block or recommend shutting down websites and apps under section 69A of the Information and Technology Act, 2000, under some specific condition as enumerated in the same.

Conclusion

In the evolving digital landscape, cyberspace covers several aspects while certain regulations or guidelines are required for smooth and secure functioning.  We sometimes change our phone numbers or deactivate them, hence, it is significantly important to delete the data associated with the phone number or any such social media account data attached to it. Hence, such a number is eligible for reallocation to a new or early subscriber after the expiration of a period of 90 days from such deactivation. On the other hand, the centre has also blocked the websites or apps that were found to be part of illegal operations including betting and money laundering. Users have also been advised not to misuse the Internet-availed services. Hence, trying to create a lawful and safe Internet environment for all. 

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References:

• https://timesofindia.indiatimes.com/india/cant-bar-telecom-companies-from-reissuing-deactivated-numbers-says-supreme-court/articleshow/104993401.cms
• https://pib.gov.in/PressReleseDetailm.aspx?PRID=1974901#:~:text=Ministry%20of%20Electronics%20and%20Information,including%20Mahadev%20Book%20and%20Reddyannaprestopro 

Executive Summary:

Microsoft rolled out a set of major security updates in August, 2024 that fixed 90 cracks in the MS operating systems and the office suite; 10 of these had been exploited in actual hacker attacks and were zero-days. In the following discussion, these vulnerabilities are first outlined and then a general analysis of the contemporary cyber security threats is also undertaken in this blog. This blog seeks to give an acquainted and non-acquainted audience about these updates, the threat that these exploits pose, and prevent measures concerning such dangers. 

1. Introduction

Nowadays, people and organisations face the problem of cybersecurity as technologies develop and more and more actions take place online. These cyber threats have not ceased to mutate and hence safeguarding organisations’ digital assets requires a proactive stand. This report is concerned with the vulnerabilities fixed by Microsoft in August 2024 that comprised a cumulative of 90 security weaknesses where six of them were zero-day exploits. All these make a terrible risk pose and thus, it is important to understand them as we seek to safeguard virtual properties. 

2. Overview of Microsoft’s August 2024 Security Updates

August 2024 security update provided by Microsoft to its products involved 90 vulnerabilities for Windows, Office, and well known programs and applications. These updates are of the latest type which are released by Microsoft under its Patch Tuesday program, a regular cum monthly release of all Patch updates. 

•  Critical Flaws: As expected, seven of the 90 were categorised as Critical, meaning that these are flaws that could be leveraged by hackers to compromise the targeted systems or bring operations to a halt. 
•  Zero-Day Exploits: A zero-day attack can be defined as exploits, which are as of now being exploited by attackers while the software vendor has not yet developed a patch for the same. It had managed 10 zero-days with the August update, which underlines that Microsoft and its ecosystems remain at risk. 
•  Broader Impact: These are not isolated to the products of Microsoft only They still persist Despite this, these vulnerabilities are not exclusive to the Microsoft products only. Other vendors such as Adobe, Cisco, Google, and others also released security advisories to fix a variety of issues which proves today’s security world is highly connected. 

3. Detailed Analysis of Key Vulnerabilities

This section provides an in-depth analysis of some of the most critical vulnerabilities patched in August 2024. Each vulnerability is explained in layman’s terms to ensure accessibility for all readers.

3. 1 CVE-2024-38189: Microsoft Project Remote Code Execution Vulnerability (CVSS score:8. 8) : 

 The problem is in programs that belong to the Microsoft Project family which is known to be a popular project management system. The vulnerability enables an attacker to produce a file to entice an user into opening it and in the process execute code on the affected system. This could possibly get the attacker full control of the user’s system as mentioned in the following section. 

 Explanation for Non-Technical Readers: Let us assume that one day you received a file which appears to be a normal word document. When it is opened, it is in a format that it secretly downloads a problematic program in the computer and this goes unnoticed. This is what could happen with this vulnerability, that is why it is very dangerous. 

 3. 2 CVE-2024-38178: Windows Scripting Engine Memory Corruption Vulnerability (CVSS score: 7.5):

Some of the risks relate to a feature known as the Windows Scripting Engine, which is an important system allowing a browser or an application to run scripts in a web page or an application. The weak point can result in corruption of memory space and an attacker can perform remote code execution with the possibility to affect the entire system. 

 Explanation for Non-Technical Readers: For the purpose of understanding how your computer memory works, imagine if your computer’s memory is a library. This vulnerability corrupts the structure of the library so that an intruder can inject malicious books (programs) which you may read (execute) on your computer and create havoc. 

 3. 3 CVE-2024-38193: WinSock Elevation of Privilege Vulnerability (CVSS score: 7. 8 )

 It opens up a security weakness in the Windows Ancillary Function Driver for WinSock, which is an essential model that masks the communication between the two. It enables the attacker to gain new privileges on the particular system they have attacked, in this case they gain some more privileges on the attacked system and can access other higher activities or details. 

 Explanation for Non-Technical Readers: This flaw is like somebody gaining access to the key to your house master bedroom. They can also steal all your valuable items that were earlier locked and could only be accessed by you. It lets the attacker cause more havoc as soon as he gets inside your computer. 

3. 4 CVE-2024-38106: Windows Kernel Elevation of Privilege Vulnerability (CVSS score: 7. 0) 

 This vulnerability targets what is known as the Windows Kernel which forms the heart or main frameworks of the operating system that controls and oversees the functions of the computer components. This particular weakness can be exploited and an opponent will be able to get high-level access and ownership of the system. 

 Explanation for Non-Technical Readers: The kernel can be compared to the brain of your computer. It is especially dangerous that if someone can control the brain he can control all the rest, which makes it a severe weakness. 

 3. 5 CVE-2024-38213: Windows Mark of the Web Security Feature Bypass Vulnerability (CVSS score: 6.5). 

 This vulnerability enables the attackers to evade the SmartScreen component of Windows which is used to safeguard users from accessing unsafe files. This weakness can be easily used by the attackers to influence the users to open files that are otherwise malicious. 

 Explanation for Non-Technical Readers: Usually, before opening a file your computer would ask you in advance that opening the file may harm your computer. This weak point makes your computer believe that this dangerous file is good and then no warning will be given to you. 

 4. Implications of the Vulnerabilities

These vulnerabilities, importantly the zero-day exploits, have significant implications on all users. 

•  Data Breaches: These weaknesses can therefore be manipulated to cause exposures of various data, occasioning data leaks that put individual and corporate information and wealth. 
•  System Compromise: The bad guys could end up fully compromising the impacted systems meaning that they can put in malware, pilfer data or simply shut down a program. 
•  Financial Loss: The organisations that do not patch these vulnerabilities on the shortest notice may end up experiencing a lot of losses because of having to deal with a lot of downtimes on their systems, having to incur the costs of remediating the systems that have been breached and also dealing with legal repercussions. 
•  Reputation Damage: Security breaches and IT system corruptions can result in loss of customer and partner confidence in an organisation’s ability to protect their information affecting its reputation and its position in the market. 

5. Recommendations for Mitigating Risks

Immediate measures should be taken regarding the risks linked to these issues since such weaknesses pose a rather high threat. The following are recommendations suitable for both technical and non-technical users. 

5. 1 Regular Software Updates 

 Make it a point that all the software, particularly operating systems and all Microsoft applications are updated. Any system out there needs to update it from Microsoft, and its Patch Tuesday release is crucial. 

 For Non-Technical Users: As much as possible, reply ‘yes’ to updates whenever your computer or smartphone prompts for it. These updates correct security matters and secure your instruments. 

 5. 2 Realisation of Phishing Attacks 

 Most of the risks are normally realised through phishing techniques. People should be taught diversifiable actions that come with crazy emails like clicking on links and opening attachments. 

 For Non-Technical Users: Do not respond to emails from unknown people and if they make you follow a link or download a file, do not do it. If it looks like spam, do not click on it. 

 5. 3 Security Software 

 Strong and reliable antivirus and anti-malware software can be used to identify and avoid the attacks that might have high chances of using these vulnerabilities. 

 For Non-Technical Users: Ensure you download a quality antivirus and always update it. This works like a security guard to your computer by preventing bad programs. 

 5. 4  Introduce Multi Factor Authentication (MFA)

 MFA works in a way to enforce a second factor of authentication before the account can be accessed; for instance, a user will be asked to input a text message or an authentication application. 

 For Non-Technical Users: NS is to make use of two-factor authentication on your accounts. It is like increasing the security measures that a man who has to burgle a house has to undergo by having to hammer an additional lock on the door. 

 5. 5 Network segmentations and Privileges management 

 Network segmentation should be adopted by organisations to prevent the spread of attacks while users should only be granted the privileges required to do their activities. 

 For Non- Technical Users: Perform the assessments of user privileges and the networks frequently and alter them in an effort of reducing the extent of the attacks. 

6. Global Cybersecurity Landscape and Vendor Patches

The other major vendors have also released patches to address security vulnerabilities in their products. The interdependent nature of technology has the effect on the entire digital ecosystem.

• Adobe, Cisco, Google, and Others: These companies have released updates to address the weaknesses in their products that are applied in different sectors. These patches should be applied promptly to enhance cybersecurity.
• Collaboration and Information Sharing:Security vendors as well as researchers and experts in the cybersecurity domain, need to remain vigilant and keep on sharing information on emerging threats in cyberspace.

7. Conclusion

The security updates companies such as Microsoft and other vendors illustrate the present day fight between cybersecurity experts and cybercriminals.  All the vulnerabilities addressed in this August 2024 update cycle are a call for prudence and constant protection of digital platforms. These vulnerabilities explain the importance of maintaining up-to-date systems, being aware of potential threats, and implementing robust security practices. Therefore, it is important to fortify our shield in this ever expanding threat domain, in order to be safe from attackers who use this weakness for their malicious purposes.

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