Be Aware of Lottery Scams
Introduction
The Online Lottery Scam involves a scammer reaching out through email, phone or SMS to inform you that you have won a significant amount of money in a lottery, instructing you to contact an agent at a specific phone number or email address that actually belongs to the fraudster. Once the agent is reached out to, the recipient will need to cover processing charges in order to claim the lottery reward. Upfront Paying is required in order to receive your reward. However, actual rewards come at no cost. Additionally, such defective 'offers’ often contain phishing attacks, tricking users into clicking on malicious links.
Modus Operandi
The common lottery fraud starts with a message stating that the receiver has won a large lottery prize. These messages are frequently crafted to imitate official correspondence from reputable institutions, sweepstakes, or foreign administrations. The scammers request the receiver to give personal information like name, address, and banking details, or to make a payment for taxes, processing fees, or legal procedures. After the victim sends the money or discloses their personal details, the scammers may vanish or persist in requesting more payments for different reasons.
Tactics and Psychological Manipulation
These fraudulent techniques mostly rely on psychological manipulation to work. Fraudsters by persuading the victims create the fake sense of emergency that they must act quickly in order to get the lottery prize. Additionally, they prey on people's hopes for a better life by convincing them that this unanticipated gain has the power to change their destiny. Many people fall prey to the scam because they are driven by the desire to get wealthy and fail to recognize the warning indications. Additionally, fraudsters frequently use convincing language and fictitious documentation that appears authentic, hence users need to be extra cautious and recognise the early signs of such online fraudulent activities.
Festive Season and Uptick in Deceptive Online Scams
As the festive season begins, there is a surge in deceptive online scams that aim at targeting innocent internet users. A few examples of such scams include, free Navratri garba passes, quiz participation opportunities, coupons offering freebies, fake offers of cheap jewellery, counterfeit product sales, festival lotteries, fake lucky draws and charity appeals. Most of these scams are targeted to lure the victims for financial gain.
In 2023, CyberPeace released a research report on the Navratri festivities scam where we highlighted the ‘Tanishq iPhone 15 Gift’ scam which involved fraudsters posing as Tanishq, a well-known jewellery brand, and offering fake iPhone 15 as Navratri gifts. Victims were lured into clicking on malicious links. CyberPeace issued a detailed advisory within the report, highlighting that the public must exercise vigilance, scrutinise the legitimacy of such offers, and take precautionary measures to shield themselves from falling prey to such deceptive cyber schemes.
Preventive Measures for Lottery Scams
To avoid lottery scams ,users should avoid responding to messages or calls about fake lottery wins, verify the source of the lottery, maintain confidentiality by not sharing sensitive personal details, approach unexpected windfalls with scepticism, avoid upfront payment requests, and recognize manipulative tactics by scammers. Ignoring messages or calls about fake lottery wins is a smart move. Verifying the source and asking probing questions is also crucial. Users are also advisednot to click on such unsolicited links of lottery prizes received in emails or messages as such links can be phishing attempts. These best practices can help protect the victims against scammers who pressurise victims to act quickly that led them to fall prey to such scams.
Must-Know Tips to Prevent Lottery Scams
● It is advised to steer clear of any communication that offers lotteries or giveaways, as these are often perceived as too good to be true.
● It is advised to refrain from transferring money to individuals/entities who are unknown without verifying their identity and credibility.
● If you have already given the fraudsters your bank account details, it is crucial to alert your bank immediately.
● Report any such incidents on the National Cyber Crime Reporting Portal at cybercrime.gov.in or Cyber Crime Helpline Number 1930.
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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
The rapid innovation of technology and its resultant proliferation in India has integrated businesses that market technology-based products with commerce. Consumer habits have now shifted from traditional to technology-based products, with many consumers opting for smart devices, online transactions and online services. This migration has increased potential data breaches, product defects, misleading advertisements and unfair trade practices.
The need to regulate technology-based commercial industry is seen in the backdrop of various threats that technologies pose, particularly to data. Most devices track consumer behaviour without the authorisation of the consumer. Additionally, products are often defunct or complex to use and the configuration process may prove to be lengthy with a vague warranty.
It is noted that consumers also face difficulties in the technology service sector, even while attempting to purchase a product. These include vendor lock-ins (whereby a consumer finds it difficult to migrate from one vendor to another), dark patterns (deceptive strategies and design practices that mislead users and violate consumer rights), ethical concerns etc.
Against this backdrop, consumer laws are now playing catch up to adequately cater to new consumer rights that come with technology. Consumer laws now have to evolve to become complimentary with other laws and legislation that govern and safeguard individual rights. This includes emphasising compliance with data privacy regulations, creating rules for ancillary activities such as advertising standards and setting guidelines for both product and product seller/manufacturer.
The Legal Framework in India
Currently, Consumer Laws in India while not tech-targeted, are somewhat adequate; The Consumer Protection Act 2019 (“Act”) protects the rights of consumers in India. It places liability on manufacturers, sellers and service providers for any harm caused to a consumer by faulty/defective products. As a result, manufacturers and sellers of ‘Internet & technology-based products’ are brought under the ambit of this Act. The Consumer Protection Act 2019 may also be viewed in light of the Digital Personal Data Protection Act 2023, which mandates the security of the digital personal data of an individual. Envisioned provisions such as those pertaining to mandatory consent, purpose limitation, data minimization, mandatory security measures by organisations, data localisation, accountability and compliance by the DPDP Act can be applied to information generated by and for consumers.
Multiple regulatory authorities and departments have also tasked themselves to issue guidelines that imbibe the principle of caveat venditor. To this effect, the Networks & Technologies (NT) wing of the Department of Telecommunications (DoT) on 2 March 2023, issued the Advisory Guidelines to M2M/IoT stakeholders for securing consumer IoT (“Guidelines”) aiming for M2M/IoT (i.e. Machine to Machine/Internet of things) compliance with the safety and security standards and guidelines in order to protect the users and the networks that connect these devices. The comprehensive Guidelines suggest the removal of universal default passwords and usernames such as “admin” that come preprogrammed with new devices and mandate the password reset process to be done after user authentication. Web services associated with the product are required to use Multi-Factor Authentication and duty is cast on them to not expose any unnecessary user information prior to authentication. Further, M2M/IoT stakeholders are required to provide a public point of contact for reporting vulnerability and security issues. Such stakeholders must also ensure that the software components are updateable in a secure and timely manner. An end-of-life policy is to be published for end-point devices which states the assured duration for which a device will receive software updates.
The involvement of regulatory authorities depends on the nature of technology products; a single product or technical consumer threat may see multiple guidelines. The Advertising Standards Council of India (ASCI) notes that cryptocurrency and related products were considered as the most violative category to commit fraud. In an attempt to protect consumer safety, it introduced guidelines to regulate advertising and promotion of virtual digital assets (VDA) exchange and trading platforms and associated services as a necessary interim measure in February 2022. It mandates that all VDA ads must carry the stipulated disclaimer “Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.” must be made in a prominent and unmissable manner.
Further, authorities such as Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) also issue cautionary notes to consumers and investors against crypto trading and ancillary activities. Even bodies like Bureau of Indian Standards (BIS) act as a complimenting authority, since product quality, including electronic products, is emphasised by mandating compliance to prescribed standards.
It is worth noting that ASCI has proactively responded to new-age technology-induced threats to consumers by attempting to tackle “dark patterns” through its existing Code on Misleading Ads (“Code”), since it is applicable across media to include online advertising on websites and social media handles. It was noted by ASCI that 29% of advertisements were disguised ads by influencers, which is a form of dark pattern. Although the existing Code addressed some issues, a need was felt to encompass other dark patterns.
Perhaps in response, the Central Consumer Protection Authority in November 2023 released guidelines addressing “dark patterns” under the Consumer Protection Act 2019 (“Guidelines”). The Guidelines define dark patterns as deceptive strategies and design practices that mislead users and violate consumer rights. These may include creating false urgency, scarcity or popularity of a product, basket sneaking (whereby additional services are added automatically on purchase of a product or service), confirm shaming (it refers to statements such as “I will stay unsecured” when opting out of travel insurance on booking of transportation tickets), etc. The Guidelines also cater to several data privacy considerations; for example, they stipulate a bar on encouraging consumers from divulging more personal information while making purchases due to difficult language and complex settings of their privacy policies, thereby ensuring compliance of technology product sellers and e-commerce platforms/vendors with data privacy laws in India. It is to be noted that the Guidelines are applicable on all platforms that systematically offer goods and services in India, advertisers and sellers.
Conclusion
Consumer laws for technology-based products in India play a pivotal role in safeguarding the rights and interests of individuals in an era marked by rapid technological advancements. These legislative frameworks, spanning facets such as data protection, electronic transactions, and product liability, assume a pivotal role in establishing a regulatory equilibrium that addresses the nuanced challenges of the digital age. The dynamic evolution of the digital landscape necessitates an adaptive legal infrastructure that ensures ongoing consumer safeguarding amidst technological innovations. As the digital landscape evolves, it is imperative for regulatory frameworks to adapt, ensuring that consumers are protected from potential risks associated with emerging technologies. Striking a balance between innovation and consumer safety requires ongoing collaboration between policymakers, businesses, and consumers. By staying attuned to the evolving needs of the digital age, Indian consumer laws can provide a robust foundation for security and equitable relationships between consumers and technology-based products.
References:
- https://dot.gov.in/circulars/advisory-guidelines-m2miot-stakeholders-securing-consumer-iot
- https://www.mondaq.com/india/advertising-marketing--branding/1169236/asci-releases-guidelines-to-govern-ads-for-cryptocurrency
- https://www.ascionline.in/the-asci-code/#:~:text=Chapter%20I%20(4)%20of%20the,nor%20deceived%20by%20means%20of
- https://www.ascionline.in/wp-content/uploads/2022/11/dark-patterns.pdf
On the occasion of 20th edition of Safer Internet Day 2023, CyberPeace in collaboration with UNICEF, DELNET, NCERT, and The National Book Trust (NBT), India, took steps towards safer cyberspace by launching iSafe Multimedia Resources, CyberPeace TV, and CyberPeace Café in an event held today in Delhi.
CyberPeace also showcased its efforts, in partnership with UNICEF, to create a secure and peaceful online world through its Project iSafe, which aims to bridge the knowledge gap between emerging advancements in cybersecurity and first responders. Through Project iSafe, CyberPeace has successfully raised awareness among law enforcement agencies, education departments, and frontline workers across various fields. The event marked a significant milestone in the efforts of the foundation to create a secure and peaceful online environment for everyone.
Launching the Cyberpeace TV, café and isafe material , National Cybersecurity coordinator of Govt of India, Lt Gen Rajesh Pant interacts with the students by introducing them with the theme of this safer internet day. He launched the coword cyber challenge initiative by the countries. Content is most important in cyberspace. He also assured everyone that the government of India is taking a lot of steps at national level to make cyber space safer. He compliments CPF for their initiatives.
Ms. Zafrin Chaudhry, Chief of Communication, UNICEF addresses students with the facts that children make out 1 out of 3 in cyberspace, so they should have a safe cyberspace. They should be informed and equipped with all the information on how to deal with any kind of issues they face in cyberspace. They should share their experience with everyone to make others aware. UNICEF in partnership with CPF is extending help to children to equip them with the help and information.
Major Vineet Kumar, Founder and Global President of CPF welcomed all and introduced us about the launching of iSafe Multimedia Resources, CyberPeace TV, and CyberPeace Café . With this launch he threw some light on upcoming plans like launching a learning module of metaverse with AR and VR. He wants to make cyberspace safe even in tier 3 cities that’s why he established the first cybercafé in Ranchi.
As the internet plays a crucial role in our lives, CyberPeace has taken action to combat potential cyber threats. They introduced CyberPeace TV, the world’s first multilingual TV Channel on Jio TV focusing on Education and Entertainment, a comprehensive online platform that provides the latest in cybersecurity news, expert analysis, and a community for all stakeholders in the field. CyberPeace also launched its first CyberPeace Café for creators and innovators and released the iSafe Multimedia resource containing Flyers, Posters, E hand book and handbook on digital safety for children developed jointly by CyberPeace, UNICEF and NCERT for the public.
O.P. Singh, Former DGP, UP Police & CEO Kailash Satyarthi foundation, , started with the data of internet users in India. The Internet is used in day-to -day activities nowadays and primarily in social media. Students should have a channelized approach to cyberspace like fixed screen time, information to the right content, and usage of the internet. I really appreciate the initiates that CyberPeace is taking in this direction.
The celebration continued by iSafe Panel Discussion on “Creating Safer Cyberspace for Children.” The discussion was moderated by Dr. Sangeeta Kaul, Director of DELNET, and was attended by panellists Mr. Rakesh Maheshwari from MeitY(Ministry of electronics and information Technology, Govt. of India), Dr. Indu Kumar from CIET-NCERT, Ms. Bindu Sharma from ICMEC, and Major Vineet Kumar from CyberPeace.
The event was also graced by professional artists from the National School of Drama, who performed Nukkad Natak and Qawwali based on cyber security themes. Students from SRDAV school also entertained the audience with their performances. The attendees were also given a platform to share their experiences with online security issues, and ICT Awardees, Parents and iSafe Champions shared their insights with the guests. The event also had stalls by CyberPeace Corps, a Global volunteer initiative, and CIET-NCERT for students to explore and join the cause. The event’s highlight was the 360 Selfie Booth, where attendees lined up to have their turn.
