Broadcasting Services (Regulation) Bill, 2024

Introduction

According to a shocking report, there are multiple scam loan apps on the App Store in India that charge excessive interest rates and force users to pay by blackmailing and harassing them. Apple has prohibited and removed these apps from the App Store, but they may still be installed on your iPhone and running. You must delete any of these apps if you have downloaded them. Learn the names of these apps and how they operated the fraud.

Why Apple banned these apps?

• Apple has taken action to remove certain apps from the Indian App Store. These apps were engaging in unethical behaviour, such as impersonating financial institutions, demanding high fees, and threatening borrowers. Here are the titles of these apps, as well as what Apple has said about their suspension.
• Following user concerns, Apple removed six loan apps from the Indian App Store. Loan apps include White Kash, Pocket Kash, Golden Kash, Ok Rupee, and others.
• According to multiple user reviews, certain apps seek unjustified access to users’ contact lists and media. These apps also charge exorbitant fees that are not necessitated. Furthermore, companies have been found to engage in unethical tactics such as charging high-interest rates and “processing fees” equal to half the loan amount.
• Some lending app users have reported being harassed and threatened for failing to return their loans on time. In some circumstances, the apps threatened the user’s contacts if payment was not completed by the deadline. According to one user, the app company threatened to produce and send false photographs of her to her contacts.
• These loan apps were removed from the App Store, according to Apple, because they broke the norms and standards of the Apple Developer Program License Agreement. These apps were discovered to be falsely claiming financial institution connections.

Issue of Fake loan apps on the App Store

• The App Store and our App Review Guidelines are designed to ensure we provide our users with the safest experience possible,” Apple explained. “We do not tolerate fraudulent activity on the App Store and have strict rules against apps and developers who attempt to game the system.
• In 2022, Apple blocked nearly $2 billion in fraudulent App Store sales. Furthermore, it rejected nearly 1.7 million software submissions that did not match Apple’s quality and safety criteria and cancelled 428,000 developer accounts due to suspected fraudulent activities.
• The scammers also used heinous tactics to force the loanees to pay. According to reports, the scammers behind the apps gained access to the user’s contact list as well as their images. They would morph the images and then scare the individual by sharing their fake nude photos with their whole contact list.

Dangerous financial fraud apps have surfaced on the App Store

• TechCrunch acquired a user review from one of these apps. “I borrowed an amount in a helpless situation, and a day before the repayment due date, I got some messages with my picture and my contacts in my phone saying that repay your loan or they will inform our contacts that you are not paying the loan,” it said.
• Sandhya Ramesh, a journalist from The Print, recently tweeted a screenshot of a direct message she got. A victim’s friend told a similar story in the message.
• TechCrunch contacted Apple, who confirmed that the apps had been removed from the App Store for breaking the Apple Developer Program License Agreement and guidelines.

Conclusion

Recently, some users have claimed that some quick-loan applications, such as White Kash, Pocket Kash, and Golden Kash, have appeared on the Top Finance applications chart in recent days. These apps necessitate unauthorised and intrusive access to users’ contact lists and media. According to hundreds of user evaluations, these apps charged exorbitantly high and useless fees. They used unscrupulous techniques such as demanding “processing fees” equal to half the loan amount and charging high-interest rates. Users were also harassed and threatened with restitution. If payments were not made by the due date, the lending applications threatened to notify users’ contacts. According to one user, the app provider even threatened to generate phoney nude images of her and send them to her contacts.

Introduction

In India, the rights of children with regard to protection of their personal data are enshrined under the Digital Personal Data Protection Act, 2023 which is the newly enacted digital personal data protection law of India. The DPDP Act requires that for the processing of children's personal data, verifiable consent of parents or legal guardians is a necessary requirement. If the consent of parents or legal guardians is not obtained then it constitutes a violation under the DPDP Act. Under section 2(f) of the DPDP act, a “child” means an individual who has not completed the age of eighteen years. 

Section 9 under the DPDP Act, 2023

With reference to the collection of children's data section 9 of the DPDP Act, 2023 provides that for children below 18 years of age, consent from Parents/Legal Guardians is required. The Data Fiduciary shall, before processing any personal data of a child or a person with a disability who has a lawful guardian, obtain verifiable consent from the parent or the lawful guardian. Section 9 aims to create a safer online environment for children by limiting the exploitation of their data for commercial purposes or otherwise. By virtue of this section, the parents and guardians will have more control over their children's data and privacy and they are empowered to make choices as to how they manage their children's online activities and the permissions they grant to various online services. 

Section 9 sub-section (3) specifies that a Data Fiduciary shall not undertake tracking or behavioural monitoring of children or targeted advertising directed at children. However, section 9 sub-section (5) further provides room for exemption from this prohibition by empowering the Central Government which may notify exemption to specific data fiduciaries or data processors from the behavioural tracking or target advertising prohibition under the future DPDP Rules which are yet to be announced or released. 

Impact on social media platforms

Social media companies are raising concerns about Section 9 of the DPDP Act and upcoming Rules for the DPDP Act. Section 9 prohibits behavioural tracking or targeted advertising directed at children on digital platforms. By prohibiting intermediaries from tracking a ‘child's internet activities’ and ‘targeted advertising’ - this law aims to preserve children's privacy. However, social media corporations contended that this limitation adversely affects the efficacy of safety measures intended to safeguard young users, highlighting the necessity of monitoring specific user signals, including from minors, to guarantee the efficacy of safety measures designed for them.

Social media companies assert that tracking teenagers' behaviour is essential for safeguarding them from predators and harmful interactions. They believe that a complete ban on behavioural tracking is counterproductive to the government's objectives of protecting children. The scope to grant exemption leaves the door open for further advocacy on this issue. Hence it necessitates coordination with the concerned ministry and relevant stakeholders to find a balanced approach that maintains both privacy and safety for young users.

Furthermore, the impact on social media platforms also extends to the user experience and the operational costs required to implement the functioning of the changes created by regulations. This also involves significant changes to their algorithms and data-handling processes. Implementing robust age verification systems to identify young users and protect their data will also be a technically challenging step for the various scales of platforms. Ensuring that children’s data is not used for targeted advertising or behavioural monitoring also requires sophisticated data management systems. The blanket ban on targeted advertising and behavioural tracking may also affect the personalisation of content for young users, which may reduce their engagement with the platform.

For globally operating platforms, aligning their practices with the DPDP Act in India while also complying with data protection laws in other countries (such as GDPR in Europe or COPPA in the US) can be complex and resource-intensive. Platforms might choose to implement uniform global policies for simplicity, which could impact their operations in regions not governed by similar laws. On the same page, competitive dynamics such as market shifts where smaller or niche platforms that cater specifically to children and comply with these regulations may gain a competitive edge. There may be a drive towards developing new, compliant ways of monetizing user interactions that do not rely on behavioural tracking.

CyberPeace Policy Recommendations

A balanced strategy should be taken into account which gives weightage to the contentions of social media companies as well as to the protection of children's personal information. Instead of a blanket ban, platforms can be obliged to follow and encourage openness in advertising practices, ensuring that children are not exposed to any misleading or manipulative marketing techniques. Self-regulation techniques can be implemented to support ethical behaviour, responsibility, and the safety of young users’ online personal information through the platform’s practices. Additionally, verifiable consent should be examined and put forward in a manner which is practical and the platforms have a say in designing the said verification. Ultimately, this should be dealt with in a manner that behavioural tracking and targeted advertising are not affecting the children's well-being, safety and data protection in any way. 

Final Words

Under section 9 of the DPDP Act, the prohibition of behavioural tracking and targeted advertising in case of processing children's personal data - will compel social media platforms to overhaul their data collection and advertising practices, ensuring compliance with stricter privacy regulations. The legislative intent behind this provision is to enhance and strengthen the protection of children's digital personal data security and privacy. As children are particularly vulnerable to digital threats due to their still-evolving maturity and cognitive capacities, the protection of their privacy stands as a priority. The innocence of children is a major cause for concern when it comes to digital access because children simply do not possess the discernment and caution required to be able to navigate the Internet safely. Furthermore, a balanced approach needs to be adopted which maintains both ‘privacy’ and ‘safety’ for young users.

References

• https://www.meity.gov.in/writereaddata/files/Digital%20Personal%20Data%20Protection%20Act%202023.pdf 
• https://www.firstpost.com/tech/as-govt-of-india-starts-preparing-rules-for-dpdp-act-social-media-platforms-worried-13789134.html#google_vignette
• https://www.business-standard.com/industry/news/social-media-platforms-worry-new-data-law-could-affect-child-safety-ads-124070400673_1.html

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Introduction

The scam involving "drugs in parcels' has resurfaced again with a new face. Cybercriminals impersonating and acting as FedEx, Police and various other authorities and in actuality, they are the perpetrators or bad actors behind the renewed "drugs in parcel" scam, which entails pressuring victims into sending money and divulging private information in order to escape fictitious legal repercussions. 

Modus operandi  

The modus operandi followed in this scam usually begins with a hacker calling someone on their cell phone posing as FedEx. They say that they are the recipients of a package under their name that includes illegal goods like jewellery, narcotics, or other items. The victim would feel afraid and apprehensive by now. Then there will be a video call with someone else who is posing as a police officer. The victim will be asked to keep the matter confidential while it is being investigated by this "fake officer."

After the call, they would get falsified paperwork from the CBI and RBI stating that an arrest warrant had been issued. Once the victim has fallen entirely under their sway, they would claim that the victim's Aadhaar has been used to carry out the unlawful conduct. They then request that the victim submit their bank account information and Aadhaar data for investigation. Subsequently, the hackers request that the victim transfer funds to a bank account for RBI validation. The victims thus submit money to the hackers believing it to be true for clearing their name.

Recent incidence:

In the most recent instance of a "drug-in-parcel" scam, an IT expert in Pune was defrauded of Rs 27.9 lakh by internet con artists acting as members of the Mumbai police's Cyber Crime Cell. The victim filed the First Information Report (FIR) in this matter at the police station. The victim stated that on November 11, 2023, the complainant received a call from a fraudster posing as a Mumbai police Cyber Crime Cell officer. The scammer falsely claimed to have discovered illegal narcotics in a package addressed to the complainant sent from Mumbai to Taiwan, along with an expired passport and an SBI card. To avoid arrest in a fabricated drug case, the fraudster coerced the complainant into providing bank account information under the guise of "verification." The victim, fearing legal consequences, transferred Rs 27,98,776 in ten online transactions to two separate bank accounts as instructed. Upon realizing the deception, the complainant reported the incident to the police, leading to an investigation.

In another such incident, the victim received an online bogus identity card from the scammers who had phoned him on the phone in October 2023. In an attempt to "clear the case" and issue a "no-objection certificate (NOC)," the fraudster persuaded the victim to wire money to a bank account, claiming to have seized narcotics in a shipment shipped from Mumbai to Thailand under his name. Fraudsters threatened to arrest the victim for mailing the narcotics package if money was not provided. 

Furthermore, In August 2023, fraudsters acting as police officers and executives of courier companies defrauded a 25-year-old advertising student of Rs 53 lakh. They extorted money from her under the guise of avoiding legal action, which would include arrest, and informed her that narcotics had been discovered in a package she had delivered to Taiwan. According to the police, callers acting as police officers threatened to arrest the girl and forced her to complete up to 34 transactions totalling Rs 53.63 lakh from her and her mother's bank accounts to different bank accounts.

Measures to protect oneself from such scams

Call Verification: 

• Be sure to always confirm the legitimacy of unexpected calls, particularly those purporting to be from law enforcement or delivery services. Make use of official contact information obtained from reliable sources to confirm the information presented.

Confidentiality:

• Use caution while disclosing personal information online or over the phone, particularly Aadhaar and bank account information. In general, legitimate authorities don't ask for private information in this way.

Official Documentation: 

• Request official documents via the appropriate means. Make sure that any documents—such as arrest warrants or other government documents—are authentic by getting in touch with the relevant authorities.

No Haste in Transactions: 

• Proceed with caution when responding hastily to requests for money or quick fixes. Creating a sense of urgency is a common tactic used by scammers to coerce victims into acting quickly.

Knowledge and Awareness: 

• Remain up to date on common fraud schemes and frauds. Keep up with the most recent strategies employed by online fraudsters to prevent falling for fresh scam iterations.

Report Suspicious Activity: 

• Notify the local police or other appropriate authorities of any suspicious calls or activities. Reports received in a timely manner can help investigations and shield others from falling for the same fraud.

2fA:

• Enable two-factor authentication (2FA) wherever you can to provide online accounts and transactions an additional degree of protection. This may lessen the chance of unwanted access.

Cybersecurity Software: 

• To defend against malware, phishing attempts, and other online risks, install and update reputable antivirus and anti-malware software on a regular basis.

Educate Friends and Family:

• Inform friends and family about typical scams and how to avoid falling victim to fraud. A safer online environment can be achieved through increased collective knowledge.

Be skeptical

• Whenever anything looks strange or too good to be true, it most often is. Trust your instincts. Prior to acting, follow your gut and confirm the information.

By taking these precautions and exercising caution, people may lessen their vulnerability to scams and safeguard their money and personal data from online fraudsters.

Conclusion:

Verifying calls, maintaining secrecy, checking official papers, transacting cautiously, and keeping up to date are all examples of protective measures for protecting ourselves from such scams. Using cybersecurity software, turning on two-factor authentication, and reporting suspicious activity are essential in stopping these types of frauds. Raising awareness and working together are essential to making the internet a safer place and resisting the activities of cybercriminals.

 References:

• https://indianexpress.com/article/cities/pune/pune-cybercrime-drug-in-parcel-cyber-scam-it-duping-9058298/#:~:text=In%20August%20this%20year%2C%20a,avoiding%20legal%20action%20including%20arrest.
• https://www.the420.in/pune-it-professional-duped-of-rs-27-9-lakh-in-drug-in-parcel-scam/
• https://www.newindianexpress.com/states/tamil-nadu/2023/oct/16/the-return-of-drugs-in-parcel-scam-2624323.html
• https://timesofindia.indiatimes.com/city/hyderabad/2-techies-fall-prey-to-drug-parcel-scam/articleshow/102786234.cms