Centre Proposes New Bills for Criminal Law

Introduction

With the increasing frequency and severity of cyber-attacks on critical sectors, the government of India has formulated the National Cyber Security Reference Framework (NCRF) 2023, aimed to address cybersecurity concerns in India. In today’s digital age, the security of critical sectors is paramount due to the ever-evolving landscape of cyber threats. Cybersecurity measures are crucial for protecting essential sectors such as banking, energy, healthcare, telecommunications, transportation, strategic enterprises, and government enterprises. This is an essential step towards safeguarding these critical sectors and preparing for the challenges they face in the face of cyber threats. Protecting critical sectors from cyber threats is an urgent priority that requires the development of robust cybersecurity practices and the implementation of effective measures to mitigate risks.

Overview of the National Cyber Security Policy 2013

The National Cyber Security Policy of 2013 was the first attempt to address cybersecurity concerns in India. However, it had several drawbacks that limited its effectiveness in mitigating cyber risks in the contemporary digital age. The policy’s outdated guidelines, insufficient prevention and response measures, and lack of legal implications hindered its ability to protect critical sectors adequately. Moreover, the policy should have kept up with the rapidly evolving cyber threat landscape and emerging technologies, leaving organisations vulnerable to new cyber-attacks. The 2013 policy failed to address the evolving nature of cyber threats, leaving organisations needing updated guidelines to combat new and sophisticated attacks.

As a result, an updated and more comprehensive policy, the National Cyber Security Reference Framework 2023, was necessary to address emerging challenges and provide strategic guidance for protecting critical sectors against cyber threats.

Highlights of NCRF 2023

• Strategic Guidance: NCRF 2023 has been developed to provide organisations with strategic guidance to address their cybersecurity concerns in a structured manner.
• Common but Differentiated Responsibility (CBDR): The policy is based on a CBDR approach, recognising that different organisations have varying levels of cybersecurity needs and responsibilities.
• Update of National Cyber Security Policy 2013: NCRF supersedes the National Cyber Security Policy 2013, which was due for an update to align with the evolving cyber threat landscape and emerging challenges.
• Different from CERT-In Directives: NCRF is distinct from the directives issued by the Indian Computer Emergency Response Team (CERT-In) published in April 2023. It provides a comprehensive framework rather than specific directives for reporting cyber incidents.
• Combination of robust strategies: National Cyber Security Reference Framework 2023 will provide strategic guidance, a revised structure, and a proactive approach to cybersecurity, enabling organisations to tackle the growing cyberattacks in India better and safeguard critical sectors.

Rising incidents of malware attacks on critical sectors

In recent years, there has been a significant increase in malware attacks targeting critical sectors. These sectors, including banking, energy, healthcare, telecommunications, transportation, strategic enterprises, and government enterprises, play a crucial role in the functioning of economies and the well-being of societies. The escalating incidents of malware attacks on these sectors have raised concerns about the security and resilience of critical infrastructure.

• Banking: The banking sector handles sensitive financial data and is a prime target for cybercriminals due to the potential for financial fraud and theft.
• Energy: The energy sector, including power grids and oil companies, is critical for the functioning of economies, and disruptions can have severe consequences for national security and public safety.
• Healthcare: The healthcare sector holds valuable patient data, and cyber-attacks can compromise patient privacy and disrupt healthcare services. Malware attacks on healthcare organisations can result in the theft of patient records, ransomware incidents that cripple healthcare operations, and compromise medical devices.
• Telecommunications: Telecommunications infrastructure is vital for reliable communication, and attacks targeting this sector can lead to communication disruptions and compromise the privacy of transmitted data. The interconnectedness of telecommunications networks globally presents opportunities for cybercriminals to launch large-scale attacks, such as Distributed Denial-of-Service (DDoS) attacks.
• Transportation: Malware attacks on transportation systems can lead to service disruptions, compromise control systems, and pose safety risks.
• Strategic Enterprises: Strategic enterprises, including defence, aerospace, intelligence agencies, and other sectors vital to national security, face sophisticated malware attacks with potentially severe consequences. Cyber adversaries target these enterprises to gain unauthorised access to classified information, compromise critical infrastructure, or sabotage national security operations.
• Government Enterprises: Government organisations hold a vast amount of sensitive data and provide essential services to citizens, making them targets for data breaches and attacks that can disrupt critical services.

Conclusion  

The sectors of banking, energy, healthcare, telecommunications, transportation, strategic enterprises, and government enterprises face unique vulnerabilities and challenges in the face of cyber-attacks. By recognising the significance of safeguarding these sectors, we can emphasise the need for proactive cybersecurity measures and collaborative efforts between public and private entities. Strengthening regulatory frameworks, sharing threat intelligence, and adopting best practices are essential to ensure our critical infrastructure’s resilience and security. Through these concerted efforts, we can create a safer digital environment for these sectors, protecting vital services and preserving the integrity of our economy and society. The rising incidents of malware attacks on critical sectors emphasise the urgent need for updated cybersecurity policy, enhanced cybersecurity measures, a collaboration between public and private entities, and the development of proactive defence strategies. National Cyber Security Reference Framework 2023 will help in addressing the evolving cyber threat landscape, protect critical sectors, fill the gaps in sector-specific best practices, promote collaboration, establish a regulatory framework, and address the challenges posed by emerging technologies. By providing strategic guidance, this framework will enhance organisations’ cybersecurity posture and ensure the protection of critical infrastructure in an increasingly digitised world.

Introduction

‍

We inhabit an era where digital connectivity, while empowering, has also unleashed a relentless tide of cyber vulnerabilities, where personal privacy is constantly threatened, and crimes like sextortion are the perfect example of the sinister side of our hyperconnected world. Social media platforms, instant messaging apps, and digital content-sharing tools have all grown rapidly, changing how people communicate with one another and making it harder to distinguish between the private and public domains. The rise of sophisticated cybercrimes that use the very tools meant to connect us is the price paid for this unparalleled convenience. Sextortion, a portmanteau of “sex’ and “extortion”, stands out among them as a particularly pernicious kind of internet exploitation. Under the threat of disclosing their private information, photos, or videos, people are forced to engage in sexual behaviours or provide intimate content. Sextortion’s psychological component is what makes it particularly harmful, it feeds on social stigma, shame, and fear, which discourage victims from reporting the crime and feed the cycle of victimisation and silence. This cybercrime targets vulnerable people from all socioeconomic backgrounds and is not limited by age, gender, or location. 

‍

The Economy of Shame: Sextortion as a Cybercrime Industry

‍

A news report from June 03, 2025, reveals a sextortion racket busted in Delhi, where a money trail of over Rs. 5 crore was identified by different teams of the Crime branch. From synthetic financial identities to sextortion and other cyber frauds, a recipe for a sophisticated cybercrime chain was found. To believe this is an aberration is to overlook the reality that it is symptomatic of a much wider and largely uncharted criminal framework. According to the FBI’s 2024 IC3 report, “extortion (including sextortion)” has skyrocketed to 86,415 complaints with losses of $143 million reported in the United States (US) alone. This indicates that coercive image-based threats are no longer an isolated cybercrime but an everyday occurrence. Sextortion is no longer an isolated cybercrime; it has metamorphosed into a systematic, industrialised criminal enterprise. Another news report dated 19th July, 2025, where Delhi Police has detained four people suspected of participating in a sextortion scheme that targeted a resident of the Bhagwanpur Khera neighbourhood of Shahdara. The suspected people were allegedly arrested on a complaint wherein the victim was manipulated and fell prey to a dating site. 

The threat is amplified by the usage of deepfake technology, which allows offenders to create obscene content that looks believable. The approach, which relies on the stigma attached to sexual imagery in conservative societies like India, is that victims frequently give in to requests out of fear of damaging their reputations. The combination of cybercrime and cutting-edge technology highlights the lopsided power that criminals possess, leaving victims defenceless and law enforcement unable to keep up. 

‍

Legal Remedies and the Evolving Battle Against Sextortion

‍

Given the complexity of these crimes, India has recognised sextortion and similar cyber-enabled financial crimes under a number of legal frameworks. A change to recognising cyber-enabled sexual exploitation as an organised criminal business is shown by the introduction of specific provisions like Section 111 in the Bhartiya Nyaya Sanhita (BNS), 2023, which classifies organised cybercrimes including extortion and frauds which fall under its expansive interpretation, as a serious offence. Similarly, Section 318 (2) criminalises cheating with a maximum sentence of three years in prison or a fine, whereas Section 336 (2) makes digital forgery a crime with a maximum sentence with a maximum sentence of two years in prison or a fine. In addition to these regulations, cheating by personation through computer resources is punishable by the Information Technology Act, 2000, specifically Section 66D, which carries a maximum sentence of three years in prison and a maximum fine of Rs. 1 lakh. Due to issues with attribution, cross-border jurisdiction, and the discreet nature of digital evidence, enforcement is still inconsistent even with current statutory restrictions. 

The government and its agencies recognise that laws achieve real impact only when backed by awareness initiatives and accessible, localised mechanisms for redressal. Several Indian states and the Department of Telecommunications launched numerous campaigns to educate the public about and safeguard their mobile communication assets against identity theft, financial fraud, and cyberscams. Initiatives like Cyber Saathi Initiative and Cyber Dost by MHA, with the goal of improving forensic and victim reporting skills.

‍

Conclusion

‍

At CyberPeace, we understand that the best defence against online abuse is prevention. Our goal is to provide people with the information and resources to identify, avoid and report sextortion attempts like CyberPeace Helpline and organise awareness campaigns on safe digital habits. In order to remain updated with the constantly looming danger, our research and policy advocacy also focus on developing more robust legal and technological safeguards. 

To every reader: think before you share, secure your accounts, and never let shame silence you. If you or someone you know becomes a victim, report it immediately, help is available, and justice is possible. Together we can reclaim the internet as a space of trust, not terror. 

‍

References 

‍

• https://www.hindustantimes.com/india-news/delhi-police-busts-sextortion-cyberfraud-rackets-6-held-101748959601825.html 
• https://timesofindia.indiatimes.com/city/delhi/delhi-police-arrests-four-for-sextortion-and-blackmail-in-shahdara/articleshow/122767656.cms ‍
• https://cdn.ncw.gov.in/wp-content/uploads/2025/05/CyberSaheli.pdf

Executive Summary:

In late 2024 an Indian healthcare provider experienced a severe cybersecurity attack that demonstrated how powerful AI ransomware is. This blog discusses the background to the attack, how it took place and the effects it caused (both medical and financial), how organisations reacted, and the final result of it all, stressing on possible dangers in the healthcare industry with a lack of sufficiently adequate cybersecurity measures in place. The incident also interrupted the normal functioning of business and explained the possible economic and image losses from cyber threats. Other technical results of the study also provide more evidence and analysis of the advanced AI malware and best practices for defending against them. 

1. Introduction

The integration of artificial intelligence (AI) in cybersecurity has revolutionised both defence mechanisms and the strategies employed by cybercriminals. AI-powered attacks, particularly ransomware, have become increasingly sophisticated, posing significant threats to various sectors, including healthcare. This report delves into a case study of an AI-powered ransomware attack on a prominent Indian healthcare provider in 2024, analysing the attack's execution, impact, and the subsequent response, along with key technical findings.

2. Background 

 In late 2024, a leading healthcare organisation in India which is involved in the research and development of AI techniques fell prey to a ransomware attack that was AI driven to get the most out of it. With many businesses today relying on data especially in the healthcare industry that requires real-time operations, health care has become the favourite of cyber criminals. AI aided attackers were able to cause far more detailed and damaging attack that severely affected the operation of the provider whilst jeopardising the safety of the patient information.  

 3. Attack Execution 

The attack began with the launch of a phishing email designed to target a hospital administrator. They received an email with an infected attachment which when clicked in some cases injected the AI enabled ransomware into the hospitals network. AI incorporated ransomware was not as blasé as traditional ransomware, which sends copies to anyone, this studied the hospital’s IT network. First, it focused and targeted important systems which involved implementation of encryption such as the electronic health records and the billing departments. 

The fact that the malware had an AI feature allowed it to learn and adjust its way of propagation in the network, and prioritise the encryption of most valuable data. This accuracy did not only increase the possibility of the potential ransom demand but also it allowed reducing the risks of the possibility of early discovery. 

 4. Impact 

•  The consequences of the attack were immediate and severe: The consequences of the attack were immediate and severe.
•  Operational Disruption: The centralization of important systems made the hospital cease its functionality through the acts of encrypting the respective components. Operations such as surgeries, routine medical procedures and admitting of patients were slowed or in some cases referred to other hospitals. 
•  Data Security: Electronic patient records and associated billing data became off-limit because of the vulnerability of patient confidentiality. The danger of data loss was on the verge of becoming permanent, much to the concern of both the healthcare provider and its patients. 
•  Financial Loss: The attackers asked for 100 crore Indian rupees (approximately 12 USD million) for the decryption key. Despite the hospital not paying for it, there were certain losses that include the operational loss due to the server being down, loss incurred by the patients who were affected in one way or the other, loss incurred in responding to such an incident and the loss due to bad reputation. 

5. Response

As soon as the hotel’s management was informed about the presence of ransomware, its IT department joined forces with cybersecurity professionals and local police. The team decided not to pay the ransom and instead recover the systems from backup. Despite the fact that this was an ethically and strategically correct decision, it was not without some challenges. Reconstruction was gradual, and certain elements of the patients’ records were permanently erased. 

 In order to avoid such attacks in the future, the healthcare provider put into force several organisational and technical actions such as network isolation and increase of cybersecurity measures. Even so, the attack revealed serious breaches in the provider’s IT systems security measures and protocols. 

6. Outcome

The attack had far-reaching consequences:

• Financial Impact: A healthcare provider suffers a lot of crashes in its reckoning due to substantial service disruption as well as bolstering cybersecurity and compensating patients. 
•  Reputational Damage: The leakage of the data had a potential of causing a complete loss of confidence from patients and the public this affecting the reputation of the provider. This, of course, had an effect on patient care, and ultimately resulted in long-term effects on revenue as patients were retained. 
•  Industry Awareness: The breakthrough fed discussions across the country on how to improve cybersecurity provisions in the healthcare industry. It woke up the other care providers to review and improve their cyber defence status. 

7. Technical Findings

The AI-powered ransomware attack on the healthcare provider revealed several technical vulnerabilities and provided insights into the sophisticated mechanisms employed by the attackers. These findings highlight the evolving threat landscape and the importance of advanced cybersecurity measures.

7.1 Phishing Vector and Initial Penetration

• Sophisticated Phishing Tactics: The phishing email was crafted with precision, utilising AI to mimic the communication style of trusted contacts within the organisation. The email bypassed standard email filters, indicating a high level of customization and adaptation, likely due to AI-driven analysis of previous successful phishing attempts.
• Exploitation of Human Error: The phishing email targeted an administrative user with access to critical systems, exploiting the lack of stringent access controls and user awareness. The successful penetration into the network highlighted the need for multi-factor authentication (MFA) and continuous training on identifying phishing attempts.

7.2 AI-Driven Malware Behavior

• Dynamic Network Mapping: Once inside the network, the AI-powered malware executed a sophisticated mapping of the hospital's IT infrastructure. Using machine learning algorithms, the malware identified the most critical systems—such as Electronic Health Records (EHR) and the billing system—prioritising them for encryption. This dynamic mapping capability allowed the malware to maximise damage while minimising its footprint, delaying detection.
• Adaptive Encryption Techniques: The malware employed adaptive encryption techniques, adjusting its encryption strategy based on the system's response. For instance, if it detected attempts to isolate the network or initiate backup protocols, it accelerated the encryption process or targeted backup systems directly, demonstrating an ability to anticipate and counteract defensive measures.
• Evasive Tactics: The ransomware utilised advanced evasion tactics, such as polymorphic code and anti-forensic features, to avoid detection by traditional antivirus software and security monitoring tools. The AI component allowed the malware to alter its code and behaviour in real time, making signature-based detection methods ineffective.

7.3 Vulnerability Exploitation

• Weaknesses in Network Segmentation: The hospital’s network was insufficiently segmented, allowing the ransomware to spread rapidly across various departments. The malware exploited this lack of segmentation to access critical systems that should have been isolated from each other, indicating the need for stronger network architecture and micro-segmentation.
• Inadequate Patch Management: The attackers exploited unpatched vulnerabilities in the hospital’s IT infrastructure, particularly within outdated software used for managing patient records and billing. The failure to apply timely patches allowed the ransomware to penetrate and escalate privileges within the network, underlining the importance of rigorous patch management policies.

7.4 Data Recovery and Backup Failures

• Inaccessible Backups: The malware specifically targeted backup servers, encrypting them alongside primary systems. This revealed weaknesses in the backup strategy, including the lack of offline or immutable backups that could have been used for recovery. The healthcare provider’s reliance on connected backups left them vulnerable to such targeted attacks.
• Slow Recovery Process: The restoration of systems from backups was hindered by the sheer volume of encrypted data and the complexity of the hospital’s IT environment. The investigation found that the backups were not regularly tested for integrity and completeness, resulting in partial data loss and extended downtime during recovery.

7.5 Incident Response and Containment

• Delayed Detection and Response: The initial response was delayed due to the sophisticated nature of the attack, with traditional security measures failing to identify the ransomware until significant damage had occurred. The AI-powered malware’s ability to adapt and camouflage its activities contributed to this delay, highlighting the need for AI-enhanced detection and response tools.
• Forensic Analysis Challenges: The anti-forensic capabilities of the malware, including log wiping and data obfuscation, complicated the post-incident forensic analysis. Investigators had to rely on advanced techniques, such as memory forensics and machine learning-based anomaly detection, to trace the malware’s activities and identify the attack vector.

8. Recommendations Based on Technical Findings

To prevent similar incidents, the following measures are recommended:

1. AI-Powered Threat Detection: Implement AI-driven threat detection systems capable of identifying and responding to AI-powered attacks in real time. These systems should include behavioural analysis, anomaly detection, and machine learning models trained on diverse datasets.
2. Enhanced Backup Strategies: Develop a more resilient backup strategy that includes offline, air-gapped, or immutable backups. Regularly test backup systems to ensure they can be restored quickly and effectively in the event of a ransomware attack.
3. Strengthened Network Segmentation: Re-architect the network with robust segmentation and micro-segmentation to limit the spread of malware. Critical systems should be isolated, and access should be tightly controlled and monitored.
4. Regular Vulnerability Assessments: Conduct frequent vulnerability assessments and patch management audits to ensure all systems are up to date. Implement automated patch management tools where possible to reduce the window of exposure to known vulnerabilities.
5. Advanced Phishing Defences: Deploy AI-powered anti-phishing tools that can detect and block sophisticated phishing attempts. Train staff regularly on the latest phishing tactics, including how to recognize AI-generated phishing emails.

9. Conclusion

The AI empowered ransomware attack on the Indian healthcare provider in 2024 makes it clear that the threat of advanced cyber attacks has grown in the healthcare facilities. Sophisticated technical brief outlines the steps used by hackers hence underlining the importance of ongoing active and strong security. This event is a stark message to all about the importance of not only remaining alert and implementing strong investments in cybersecurity but also embarking on the formulation of measures on how best to counter such incidents with limited harm. AI is now being used by cybercriminals to increase the effectiveness of the attacks they make and it is now high time all healthcare organisations ensure that their crucial systems and data are well protected from such attacks.

‍