The Murky Illusion: Online Gambling and Cyber-Security Issues
Introduction
As the world is being "Digitally Interlaced", cyber security has become a continuous wrangle. The “Gambling industry” is considered an incredibly lucrative mark for cybercriminals, principally due to the enormous quantities of cash on hand and the sensitive details it processes day to day. Cybercriminals may use susceptibilities in gambling scaffolds to achieve financial scams or launder unlawful funds. An analysis by Security Scorecard discovered that the online gambling industry was ranked third in the possibility of encountering a cyber attack, following the energy and financial services sectors. Similarly, Online gambling is a bending matter that demands meticulous contemplation by policymakers and nationals. The incredible rise of online gambling has led to a terse acclivity in unlawful activities such as online scams, fraud, etc. Also, online sports gambling has become a thriving endeavour in contemporary years as millions of people are putting stakes and gambles on their electronic devices.
The Challenges
Online gambling has thus become a widespread frolicking for numerous youngsters, with the industry tossed to be worth billions of dollars in the forthcoming decades. The prominent cyber security challenges in the gambling industry are money laundering, financial laundering, ransomware, personal information theft, data breaches, distributed Denial of Service (DDoS), system disruptions and Insider perils and employee malfeasance. Challenges of online gambling also include being properly not regulated and a lack of social interaction with near and dear ones. The spread of Internet gambling has presented many problems affecting consumer behaviour online, motivations to gamble, problem gambling, security of websites, and the righteousness and virtue of the games. The rise of online gambling among young people due to the lack of clear regulations has likewise produced an abundant backdrop for financial ruination.
Web games and betting are among the fastest-evolving areas of the Internet. Over the past several years, there has been an international flare-up in online gambling, permitting customers to play from the convenience of home, work, and public locations. Numerous offshore betting websites and apps usually permit parties to win in the start with sound returns, whereas after the user gets addicted and invests considerable sums, they either keep failing or have the website refuse to cash out the winnings. Also, the information demonstrates that online games have been employed to commit wrongdoings (Child sexual exploitive material, religious conversion, cyberbullying, fraud, betting in virtual online casinos, etc.)
India's laws and regulations surrounding online gambling are complex and constantly evolving. While the legal framework is not entirely clear, a few state in India have their own set of rules.
Recently In April 2023, the Union Ministry of Electronics and Information Technology (“MeitY”), by virtue of the rule-making powers available to the central government under the Information Technology Act, 2000 (“IT Act 2000”), implemented a new central legal framework for online gaming through amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (“IT Rules 2021”). These amendments (“Online Gaming Rules”) propose a light-touch, co-regulatory regime whereby MeitY-recognised, independent self-regulatory bodies (“SRB”) will verify whether an “online real-money game” is to be made available to the general public or not – in accordance with the baseline criteria prescribed by the Online Gaming Rules.
The Online Gaming Rules attempt to regulate online gaming platforms by treating them as an “online gaming intermediary” (“OGI”) and prescribing intermediary due diligence obligations for them under the IT Rules 2021. An OGI has been defined in the Online Gaming Rules as “any intermediary that enables the users of its computer resource to access one or more online games”. Under the Online Gaming Rules, an online game can be a “permissible online game” if (i) it is not an online real-money game, or (ii) it is an online real-money game but is “verified” by an SRB in accordance with the baseline criteria prescribed by the Online Gaming Rules and any additional criteria prescribed by the SRB itself.
Global Perspective
The global gaming industry worth over US$227 billion in 2022 is further projected to grow to US$312 billion by 2027. Several countries have set regulatory frameworks about online gaming, though these are skewed, concentrating mainly on gambling and circumventing numerous of the more typical cyber threats. The US spends about $60 billion annually on online gambling and sports betting. In Europe, gambling is an even larger moneymaker. Also, numerous countries in Europe, like the UK, have legalised gambling. Nevertheless, it is prohibited for a US based company to operate an online gambling site. Yet, sports betting online is permitted in some states.
Today, though the gaming market has been overpowered by China and the US, future growth in the sector is anticipated to come from emerging economies like India with increasing populations. The permitted status of online gambling in India is nonetheless imprecise, vamoosing space for exploitation by cyber criminals and disarray for players involved. One of the climactic points that ought to be addressed is the sudden upsurge of online games, which increases gambling. Skill-based games such as poker, rummy etc., have additionally been developed to circumvent the legal definition of gambling in India. The recent instances of the online gaming industry not being properly regulated have also come to light in India. For instance, the Enforcement Directorate (ED) is still investigating the vast Mahadev Online Betting scandal, exposing an unknown money laundering method using Unified Payment Interface (UPI) IDs. Also, the Cyber Cell in Agra has taken proactive action against copyright violations, illegal online gambling and betting activities, shutting down 27 Illegal cricket betting sites in major operations, safeguarding several lakhs of Indians with thousands of crores from being transferred to overseas shores principally China.
Consequently, though India has announced new regulations on online gaming, its contemporary policy framework cannot contend with the problems endangering this sector. The Public Gambling Act of 1867 makes it unlawful to use a public gambling house or to be seen in one. Nevertheless, the act does not explicitly cite online gambling, leading to further interpretation. The Ministry of Home Affairs (MHA) has released a further awareness campaign for offshore illegal gambling apps, notifying users to be mindful of foreign apps as they may be fraudulent and might induce monetary damage to the user. Also, state laws control gambling in India with each state having its own directive on the subject. Yet, the Supreme Court of India has maintained that skilled games are not gambling and are thus legal. Furthermore, the Information Technology (IT) Act, of 2000 does not precisely handle online gambling or games that enable gambling.
Today, developers have strived for new ways to monetise the growing popularity of online gaming, which oversaw the creation of in-game currencies that can be bought using actual money, usually through credit cards. Several nations have prohibited the usage of in-game currency and loot boxes, considering them a kind of online gambling. The in-game currency has thus caused much disagreement about becoming a state of hunting monetisation by developers, especially targeting minor or newbie players. The gambling industry, therefore, faces unique cybersecurity challenges that require a comprehensive and proactive approach to cybersecurity.
Conclusion
Presently, there are approximately 3.09 billion active video game players worldwide, and the number is expected to reach 3.32 billion by 2024 as of 2023. In the contemporary digital era, information is priceless, and encryption acts as a necessary means to safeguard it. Thus, Regulators are working to maintain the swiftness of shift in the industry, as the dearth of transparency in the law has made it challenging to implement regulations. There is also less awareness about cyber security in India due to the following grounds such as the lack of ethical hackers in the country, companies in India lacking focus on cyber security and hiring a team of ethical hackers and cyber security experts. Furthermore, there has been a lack of knowledge among the citizens as well.
It is essential to realise the conceivable social and economic consequences and take measures to handle the online gambling industry. The industry has thus been undersized in the mode of research following online crime and Internet gambling, even though it is an acute emphasis. There is also a pressing necessity to rebuild these regulations to tackle the more unbridled cyber security hazards swarming the gaming industry. Similarly, there is an urgent need for governments and policymakers around the world to start paying more attention to the gaming industry as cyber security threats continue to rise. There should be a further need to strengthen the regulatory framework, establish Self Regulatory Organizations (SROs), create ethical gaming designs and increase awareness among gamers. The Government of India should consider devising its own rating system to rate games so that players under 18 cannot access them.
Eventually, cyber security is a shared commitment, and everyone in the online gambling ecosystem must function jointly to provide a secure and safe setting for all.
References:
- https://truefort.com/gambling-industry-cybersecurity/
- https://www.orfonline.org/research/cybersecurity-threats-in-online-gaming-learnings-for-india
- https://www.hackread.com/chinese-scammers-cloned-websites-gambling-network/
- https://www.civilsdaily.com/news/cybersecurity-threats-from-online-gaming/
- https://www.linkedin.com/pulse/legal-considerations-online-gambling-india-sudden-increase-mathur/
- https://www.jsheld.com/insights/articles/the-importance-of-cybersecurity-in-the-online-sports-betting-industry
- https://www.the420.in/agra-cyber-cell-takes-down-27-illegal-betting-sites/
- https://g2g.news/gaming/ministry-of-home-affairs-releases-new-awareness-campaign-for-online-gaming-in-india/
- https://smestreet.in/technology/kaspersky-warns-of-increased-phishing-scams-and-data-breaches-in-apac-for-2024-2381601
- https://economictimes.indiatimes.com/tech/newsletters/morning-dispatch/govt-bans-mahadev-other-illegal-betting-apps-cyber-attacks-against-india-spike/articleshow/104996017.cms?from=mdr
- https://cipher.com/cybersecurity-for-gambling/
- https://www.mangalorean.com/tightening-the-reins-indian-government-blocks-over-550-illegal-betting-and-gambling-apps/
- https://cybersecurityasean.com/news-press-releases/kaspersky-predicts-rise-cyber-threats-across-apac-2024
- https://www.cnbctv18.com/technology/mahadev-betting-app-scam-ed-money-laundering-upi-celebrities-under-scanner-17815661.htm
- https://iclg.com/practice-areas/gambling-laws-and-regulations/india
Related Blogs
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.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
In today’s digital age, everyone is online, so is the healthcare sector worldwide. The latest victim of a data breach is Hong Kong healthcare provider OT&P Healthcare, which has recently suffered a data loss of 100,000 patients that exposed their medical history, and caused concern to the patients and their families. This breach has highlighted the vulnerability in the healthcare sector /industry and the importance of cybersecurity measures to protect sensitive information. This blog will explore the data breach, its impact on patients and families, and the best practices for safeguarding sensitive data.
Background: On 13 March 2023, an incident took place where the Cybercriminals deployed a variety of methods to breach the data, which included phishing attacks, malware, and exploiting software vulnerabilities. OT&P Health Care exploits the sensitive data of the patients. According to OT&P Healthcare, it is working together with law enforcement and has hired a cybersecurity firm to investigate the incident and tighten its security procedures. Like other data breaches, the inquiry will most certainly take some time to uncover the actual source and scope of the intrusion. Regardless of the cause of the breach, this event emphasises the significance of frequent cybersecurity assessments, vulnerability testing, and proactive data protection measures. Considering the dangers in the healthcare sector must be cautious in preserving the personal and medical records of the patients as they are sensitive in nature.
Is confidentiality at stake due to data breaches?
Medical data breaches represent a huge danger to patients, with serious ramifications for their privacy, financial security, and physical health. Some of the potential hazards and effects of medical data breaches are as follows:
- Compromise of patient data: Medical data breaches can expose patients’ sensitive information, such as their medical history, diagnoses, treatment, and medication regimens. If history is highly personal and reaches the wrong hands, it could harm someone’s reputation.
- Identity theft: the data stolen by the cybercriminals may be used by them to open credit accounts and apply for loans, Patients can suffer severe financial and psychological stress because of identity theft since they may spend years attempting to rebuild their credit and regain their good name.
- Medical Fraud: Medical data breaches can also result in medical fraud, which occurs when hackers use stolen medical information to charge insurance companies for services that were not performed or for bogus treatments or procedures. Medical fraud may result in financial losses for patients, insurance companies, and individuals obtaining ineffective or risky medical care.
Impact on patients
Data breach does not cause financial loss but may also profoundly impact their mental health and emotional well-being. let’s understand some psychological impacts:
- Anxiety and Stress: Patients whose medical data has been affected may experience feelings of stress and anxiety as they worry about the potential consequences of the data loss can be misused.
- Loss of faith: Patients may lose faith in their healthcare providers if they believe their personal and medical information needs to be properly As a result, patients may be reluctant to disclose sensitive information to their healthcare professionals, compromising the quality of their medical care.
- Sense of Embarrassment: Patients may feel disregarded or ashamed if their sensitive medical information is revealed, particularly if it relates to a sensitive or stigmatised This might lead to social isolation and a reluctance to seek further medical treatment.
- Post-Traumatic Stress Disorder (PTSD): Patients who have experienced a data breach may have PTSD symptoms such as nightmares, flashbacks, and avoidance behaviour. This can have long-term consequences for their mental health and quality of life.
Legal Implications of Data Breach
Patients have certain legal rights and compensations when a healthcare data breach occurs. Let’s have a look at them: –
- Legal Liability: Healthcare providers have a legal obligation to protect data under various privacy and security laws if they fail to take appropriate measures to protect patient data, they may be held legally liable for resulting harm.
- Legal recourse: Patients whose healthcare data leak has impacted them have the legal right to seek compensation and hold healthcare providers and organisations This could involve suing the healthcare practitioner or organisationresponsible for the breach.
- Right to seek compensation: the patients who have suffered from the data loss are liable to seek compensation.
- Notifications: As soon as a data breach takes place, it impacts the organisation and its customers. In this case, it is the responsibility of the OT&P to
- notify their patients about the data breach and inform them about the consequences.
- Take Away from OT &P Healthcare Data Breach: with the growing data breaches in the healthcare industry, here are some lessons that can be learned from the Hong Kong data breach.
- Cybersecurity: The OT&P Healthcare data breach points to the vital need to prioritisecybersecurity in healthcare. To secure themselves, hospitals and the healthcare sector must use the latest software to protect their data.
- Regular risk assessments: These assessments help find system vulnerabilities and security issues. This can assist healthcare providers and organisationsin taking the necessary actions to avoid data breaches and boost their cybersecurity defences.
- Staff Training: Healthcare workers should be taught cybersecurity best practices, such as detecting and responding to phishing attempts, handling sensitive data, and reporting suspected security breaches. This training should be continued to keep workers updated on the newest cybersecurity trends and threats.
- Incident Response Strategy: Healthcare providers and organisations should have an incident response policy in place to deal with data breaches and other security concerns. This strategy should include protocols for reporting instances, limiting the breach, and alerting patients and verified authorities.
Conclusion
The recent data breach in Hong Kong healthcare impact not only the patients but also their trust is shaken. As we continue to rely on digital technology for medical records and healthcare delivery, it is essential that healthcare providers and organisations take proactive steps to protect patient data from cyber-attacks and data breaches.
References
Introduction
A message has recently circulated on WhatsApp alleging that voice and video chats made through the app will be recorded, and devices will be linked to the Ministry of Electronics and Information Technology’s system from now on. WhatsApp from now, record the chat activities and forward the details to the Government. The Anti-Government News has been shared on social media.
Message claims
- The fake WhatsApp message claims that an 11-point new communication guideline has been established and that voice and video calls will be recorded and saved. It goes on to say that WhatsApp devices will be linked to the Ministry’s system and that Facebook, Twitter, Instagram, and all other social media platforms will be monitored in the future.
- The fake WhatsApp message further advises individuals not to transmit ‘any nasty post or video against the government or the Prime Minister regarding politics or the current situation’. The bogus message goes on to say that it is a “crime” to write or transmit a negative message on any political or religious subject and that doing so could result in “arrest without a warrant.”
- The false message claims that any message in a WhatsApp group with three blue ticks indicates that the message has been noted by the government. It also notifies Group members that if a message has 1 Blue tick and 2 Red ticks, the government is checking their information, and if a member has 3 Red ticks, the government has begun procedures against the user, and they will receive a court summons shortly.
WhatsApp does not record voice and video calls
There has been news which is spreading that WhatsApp records voice calls and video calls of the users. the news is spread through a message that has been recently shared on social media. As per the Government, the news is fake, that WhatsApp cannot record voice and video calls. Only third-party apps can record voice and video calls. Usually, users use third-party Apps to record voice and video calls.
Third-party apps used for recording voice and video calls
- App Call recorder
- Call recorder- Cube ACR
- Video Call Screen recorder for WhatsApp FB
- AZ Screen Recorder
- Video Call Recorder for WhatsApp
Case Study
In 2022 there was a fake message spreading on social media, suggesting that the government might monitor WhatsApp talks and act against users. According to this fake message, a new WhatsApp policy has been released, and it claims that from now on, every message that is regarded as suspicious will have three 3 Blue ticks, indicating that the government has taken note of that message. And the same fake news is spreading nowadays.
WhatsApp Privacy policies against recording voice and video chats
The WhatsApp privacy policies say that voice calls, video calls, and even chats cannot be recorded through WhatsApp because of end-to-end encryption settings. End-to-end encryption ensures that the communication between two people will be kept private and safe.
WhatsApp Brand New Features
- Chat lock feature: WhatsApp Chat Lock allows you to store chats in a folder that can only be viewed using your device’s password or biometrics such as a fingerprint. When you lock a chat, the details of the conversation are automatically hidden in notifications. The motive of WhatsApp behind the cha lock feature is to discover new methods to keep your messages private and safe. The feature allows the protection of most private conversations with an extra degree of security
- Edit chats feature: WhatsApp can now edit your WhatsApp messages up to 15 minutes after they have been sent. With this feature, the users can make the correction in the chat or can add some extra points, users want to add.
Conclusion
The spread of misinformation and fake news is a significant problem in the age of the internet. It can have serious consequences for individuals, communities, and even nations. The news is fake as per the government, as neither WhatsApp nor the government could have access to WhatsApp chats, voice, and video calls on WhatsApp because of end-to-end encryption. End-to-end encryption ensures to protect of the communications of the users. The government previous year blocked 60 social media platforms because of the spreading of Anti India News. There is a fact check unit which identifies misleading and false online content.
