Curtailing FinCrime on Metaverse
Introduction
On the precipice of a new domain of existence, the metaverse emerges as a digital cosmos, an expanse where the horizon is not sky, but a limitless scope for innovation and imagination. It is a sophisticated fabric woven from the threads of social interaction, leisure, and an accelerated pace of technological progression. This new reality, a virtual landscape stretching beyond the mundane encumbrances of terrestrial life, heralds an evolutionary leap where the laws of physics yield to the boundless potential inherent in our creativity. Yet, the dawn of such a frontier does not escape the spectre of an age-old adversary—financial crime—the shadow that grows in tandem with newfound opportunity, seeping into the metaverse, where crypto-assets are no longer just an alternative but the currency du jour, dazzling beacons for both legitimate pioneers and shades of illicit intent.
The metaverse, by virtue of its design, is a canvas for the digital repaint of society—a three-dimensional realm where the lines between immersive experiences and entertainment blur, intertwining with surreal intimacy within this virtual microcosm. Donning headsets like armor against the banal, individuals become avatars; digital proxies that acquire the ability to move, speak, and perform an array of actions with an ease unattainable in the physical world. Within this alternative reality, users navigate digital topographies, with experiences ranging from shopping in pixelated arcades to collaborating in virtual offices; from witnessing concerts that defy sensory limitations to constructing abodes and palaces from mere codes and clicks—an act of creation no longer beholden to physicality but to the breadth of one's ingenuity.
The Crypto Assets
The lifeblood of this virtual economy pulsates through crypto-assets. These digital tokens represent value or rights held on distributed ledgers—a technology like blockchain, which serves as both a vault and a transparent tapestry, chronicling the pathways of each digital asset. To hop onto the carousel of this economy requires a digital wallet—a storeroom and a gateway for acquisition and trade of these virtual valuables. Cryptocurrencies, with NFTs—Non-fungible Tokens—have accelerated from obscure digital curios to precious artifacts. According to blockchain analytics firm Elliptic, an astonishing figure surpassing US$100 million in NFTs were usurped between July 2021 and July 2022. This rampant heist underlines their captivating allure for virtual certificates. Empowers do not just capture art, music, and gaming, but embody their very soul.
Yet, as the metaverse burgeons, so does the complexity and diversity of financial transgressions. From phishing to sophisticated fraud schemes, criminals craft insidious simulacrums of legitimate havens, aiming to drain the crypto-assets of the unwary. In the preceding year, a daunting figure rose to prominence—the vanishing of US$14 billion worth of crypto-assets, lost to the abyss of deception and duplicity. Hence, social engineering emerges from the shadows, a sort of digital chicanery that preys not upon weaknesses of the system, but upon the psychological vulnerabilities of its users—scammers adorned in the guise of authenticity, extracting trust and assets with Machiavellian precision.
The New Wave of Fincrimes
Extending their tentacles further, perpetrators of cybercrime exploit code vulnerabilities, engage in wash trading, obscuring the trails of money laundering, meander through sanctions evasion, and even dare to fund activities that send ripples of terror across the physical and virtual divide. The intricacies of smart contracts and the decentralized nature of these worlds, designed to be bastions of innovation, morph into paths paved for misuse and exploitation. The openness of blockchain transactions, the transparency that should act as a deterrent, becomes a paradox, a double-edged sword for the law enforcement agencies tasked with delineating the networks of faceless adversaries.
Addressing financial crime in the metaverse is Herculean labour, requiring an orchestra of efforts—harmonious, synchronised—from individual users to mammoth corporations, from astute policymakers to vigilant law enforcement bodies. Users must furnish themselves with critical awareness, fortifying their minds against the siren calls that beckon impetuous decisions, spurred by the anxiety of falling behind. Enterprises, the architects and custodians of this digital realm, are impelled to collaborate with security specialists, to probe their constructs for weak seams, and to reinforce their bulwarks against the sieges of cyber onslaughts. Policymakers venture onto the tightrope walk, balancing the impetus for innovation against the gravitas of robust safeguards—a conundrum played out on the global stage, as epitomised by the European Union's strides to forge cohesive frameworks to safeguard this new vessel of human endeavour.
The Austrian Example
Consider the case of Austria, where the tapestry of laws entwining crypto-assets spans a gamut of criminal offences, from data breaches to the complex webs of money laundering and the financing of dark enterprises. Users and corporations alike must become cartographers of local legislation, charting their ventures and vigilances within the volatile seas of the metaverse.
Upon the sands of this virtual frontier, we must not forget: that the metaverse is more than a hive of bits and bandwidth. It crystallises our collective dreams, echoes our unspoken fears, and reflects the range of our ambitions and failings. It stands as a citadel where the ever-evolving quest for progress should never stray from the compass of ethical pursuit. The cross-pollination of best practices, and the solidarity of international collaboration, are not simply tactics—they are imperatives engraved with the moral codes of stewardship, guiding us to preserve the unblemished spirit of the metaverse.
Conclusion
The clarion call of the metaverse invites us to venture into its boundless expanse, to savour its gifts of connection and innovation. Yet, on this odyssey through the pixelated constellations, we harness vigilance as our star chart, mindful of the mirage of morality that can obfuscate and lead astray. In our collective pursuit to curtail financial crime, we deploy our most formidable resource—our unity—conjuring a bastion for human ingenuity and integrity. In this, we ensure that the metaverse remains a beacon of awe, safeguarded against the shadows of transgression, and celebrated as a testament to our shared aspiration to venture beyond the realm of the possible, into the extraordinary.
References
- https://www.wolftheiss.com/insights/financial-crime-in-the-metaverse-is-real/
- https://gnet-research.org/2023/08/16/meta-terror-the-threats-and-challenges-of-the-metaverse/
- https://shuftipro.com/blog/the-rising-concern-of-financial-crimes-in-the-metaverse-aml-screening-as-a-solution/
Related Blogs
Introduction
In the interconnected world of social networking and the digital landscape, social media users have faced some issues like hacking. Hence there is a necessity to protect your personal information and data from scammers or hackers. In case your email or social media account gets hacked, there are mechanisms or steps you can utilise to recover your email or social media account. It is important to protect your email or social media accounts in order to protect your personal information and data on your account. It is always advisable to keep strong passwords to protect your account and enable two-factor authentication as an extra layer of protection. Hackers or bad actors can take control of your account, they can even change the linked mail ID or Mobile numbers to take full access to your account.
Recent Incident
Recently, a US man's Facebook account was deleted or disabled by Facebook. He has sued Facebook and initiated a legal battle. He has contended that there was no violation of any terms and policy of the platform, and his account was disabled. In the first instance, he approached the platform. However, the platform neglected his issue then he filed a suit, where the court ordered Facebook's parent company, Meta, to pay $50,000 compensation, citing ignorance of the tech company.
Social media account recovery using the ‘Help’ Section
If your Facebook account has been disabled, when you log in to your account, you will see a text saying that your account is disabled. If you think that your account is disabled by mistake, in such a scenario, you can make a request to Facebook to ‘review’ its decision using the help centre section of the platform. To recover your social media account, you can go to the “Help” section of the platform where you can fix a login problem and also report any suspicious activity you have faced in your account.
Best practices to stay protected
- Strong password: Use strong and unique passwords for your email and all social media accounts.
- Privacy settings: You can utilise the privacy settings of the social media platform, where you can set privacy as to who can see your posts and who can see your contact information, and you can also keep your social media account private. You might have noticed a few accounts on which the user's name is unusual and isn’t one which you recognise. The account has few or no friends, posts, or visible account activity.
- Avoid adding unknown users or strangers to your social networking accounts: Unknown users might be scammers who can steal your personal information from your social media profiles, and such bad actors can misuse that information to hack into your social media account.
- Report spam accounts or posts: If you encounter any spam post, spam account or inappropriate content, you can report such profile or post to the platform using the reporting centre. The platform will review the report and if it goes against the community guidelines or policy of the platform. Hence, recognise and report spam, inappropriate, and abusive content.
- Be cautious of phishing scams: As a user, we encounter phishing emails or links, and phishing attacks can take place on social media as well. Hence, it is important that do not open any suspicious emails or links. On social media, ‘Quiz posts’ or ‘advertisement links’ may also contain phishing links, hence, do not open or click on such unauthenticated or suspicious links.
Conclusion
We all use social media for connecting with people, sharing thoughts, and lots of other activities. For marketing or business, we use social media pages. Social media offers a convenient way to connect with a larger community. We also share our personal information on the platform. It becomes important to protect your personal information, your email and all your social media accounts from hackers or bad actors. Follow the best practices to stay safe, such as using strong passwords, two-factor authentication, etc. Hence contributing to keeping your social media accounts safe and secure.
References:
- https://www.gpb.org/news/2023/07/11/facebook-wrongfully-deleted-his-account-he-sued-the-company-and-won
- https://consumer.ftc.gov/articles/how-recover-your-hacked-email-or-social-media-account
Introduction
Misinformation is, to its basic meaning, incorrect or misleading information, it may or may not include specific malicious intent and includes inaccurate, incomplete, misleading, or false information and selective or half-truths. The main challenges in dealing with misinformation are defining and distinguishing misinformation from legitimate content. This complexity arises due to the rapid evolution and propagation which information undergoes on the digital platforms. Additionally, balancing the fundamental right of freedom of speech and expression with content regulation by state actors poses a significant challenge. It requires careful consideration to avoid censorship while effectively combating harmful misinformation.
Acknowledging the severe consequences of misinformation and the critical need to combat misinformation, Bharatiya Nyaya Sanhita (BNS), 2023 has implemented key measures to address misinformation in India. These new provisions introduced under the new criminal laws in India penalise the deliberate creation, distribution, or publication of inaccurate information. Previously missing from the IPC, these sections offer an additional legal resource to counter the proliferation of falsehoods, complementing existing laws targeting the same issue.
Section 353 of the BNS on Statements Conducing to Public Mischief criminalises making, publishing, or circulating statements, false information, rumours, or reports, including through electronic means, with the intent or likelihood of causing various harmful outcomes.
This section thus brings misinformation into its ambit, since misinformation has been traditionally used to induce public fear or alarm that may lead to offences against the State or public tranquillity or inciting one class or community to commit offences against another. The section also penalizes the promotion of enmity, hatred, or ill will among different religious, racial, linguistic, or regional groups.
BNS also prescribes punishment of imprisonment for up to three years, a fine, or both for offences under section 353. Interestingly, a longer imprisonment of up to 5 years along with a fine has been prescribed to curb such offences in places of worship or during religious ceremonies. The only exception that may be availed under this section is granted to unsuspecting individuals who, believing the misinformation to be true, spread misinformation without any ill intent. However, this exception may not be as effective in curbing misinformation, since at the outset, the offence is hard to trace and has multiple pockets for individuals to seek protection without any mechanism to verify their intent.
The BNS also aims to regulate misinformation through Section 197(1)(d) on Imputations, assertions prejudicial to national integration. Under this provision, anyone who makes or publishes false or misleading information, whether it is in the form of spoken words, written, by signs, in visible representations, or through electronic communication, therefore, results in jeopardising the sovereignty, unity, integrity, or security of India is liable to face punishment in the form of imprisonment for up to three years, a fine, or both and if it occurs in a place of worship or during religious ceremonies, the quantum of punishment is increased to imprisonment for up to five years and may include a fine. Additionally, Section 212 (a) & (b) provides against furnishing false information. If a person who is legally obligated to provide information to a public servant, knowingly or reasonably believes that the information is false, and still furnishes it, they now face a punishment of six months imprisonment or a fine up to five thousand rupees or both. However, if the false information pertains to the commission or prevention of an offence, or the apprehension of an offender, the punishment increases to imprisonment for up to two years, a fine, or both.
Enforcement Mechanisms: CyberPeace Policy Wing Outlook
To ensure the effective enforcement of these provisions, coordination between the key stakeholders, i.e., the law enforcement agencies, digital platforms, and judicial oversight is essential. Law enforcement agencies must utilize technology such as data analytics and digital forensics for tracking and identifying the origins of false information. This technological capability is crucial for pinpointing the sources and preventing the further spread of misinformation. Simultaneously, digital platforms associated with misinformation content are required to implement robust monitoring and reporting mechanisms to detect and address the generated misleading content proactively. A supporting oversight by judicial bodies plays a critical role in ensuring that enforcement actions are conducted fairly and in line with legal standards. It helps maintain a balance between addressing misinformation and upholding fundamental rights such as freedom of speech. The success of the BNS in addressing these challenges will depend on the effective integration of these mechanisms and ongoing adaptation to the evolving digital landscape.
Resources:
- Bharatiya Nyaya Sanhita, 2023 https://www.mha.gov.in/sites/default/files/250883_english_01042024.pdf
- https://www.foxmandal.in/changes-brought-forth-by-the-bharatiya-nyaya-sanhita-2023/
- https://economictimes.indiatimes.com/news/india/spreading-fake-news-could-land-people-in-jail-for-three-years-under-new-bharatiya-nyaya-sanhita-bill/articleshow/102669105.cms?from=mdr
Overview:
It is worth stating that millions of Windows users around the world are facing the Blue Screen of Death (BSOD) problem that makes systems shutdown or restart. This has been attributed to a CrowdStrike update that was released recently and has impacted many organizations, financial institutions, and government agencies across the globe. Indian airlines have also reported disruptions on X (formerly Twitter), informing passengers about the issue.
Understanding Blue Screen of Death:
Blue Screen errors, also known as black screen errors or STOP code errors, can occur due to critical issues forcing Windows to shut down or restart. You may encounter messages like "Windows has been shut down to prevent damage to your computer." These errors can be caused by hardware or software problems.
Impact on Industries
Some of the large U. S. airlines such as American Airlines, Delta Airlines, and United Airlines had to issue ground stops because of communication problems. Also, several airports on Friday suffered a massive technical issue in check-in kiosks for IndiGo, Akasa Air, SpiceJet, and Air India Express.
The Widespread Issue
The issue seems widespread and is causing disruption across the board as Windows PCs are deployed at workplaces and other public entities like airlines, banks, and even media companies. It has been pointed out that Windows PCs use a special cybersecurity solution from a company called CrowdStrike that seems to be the culprit for this outage, affecting most Windows PC users out there.
Microsoft's Response
The issue was acknowledged by Microsoft and the mitigations are underway. The company in its verified X handle Microsoft 365 status has shared a series information on the latest outage and they are looking into the matter. The issue is under investigation.
In one of the posts from Microsoft Azure, it is mentioned that they have become aware of an issue affecting Virtual Machines (VMs) running Windows Client and Windows Server with the CrowdStrike Falcon agent installed. These VMs may encounter a bug check (BSOD) and become stuck in a restarting state. Their analysis indicates that this issue started approximately at 19:00 UTC on July 18th. They have provided recommendations as follows:
Restore from Backup: In case customers have available backups prior to 19:00 UTC on July 18th, they should recover VM data from the backups. If the customer is using Azure Backup, they can get exact steps on how to restore VM data in the Azure portal. here.
Offline OS Disk Repair: Alternatively, customers can attempt offline repair of the OS disk by attaching an unmanaged disk to the affected VM. Encrypted disks may require additional steps to unlock before repair. Once attached, delete the following file:
Windows/System/System32/Drivers/CrowdStrike/C00000291*.sys
After deletion, reattach the disk to the original VM.
Microsoft Azure is actively investigating additional mitigation options for affected customers. We will provide updates as we gather more information.
Resolving Blue Screen Errors in Windows
Windows 11 & Windows 10:
Blue Screen errors can stem from both hardware and software issues. If new hardware was added before the error, try removing it and restarting your PC. If restarting is difficult, start your PC in Safe Mode.
To Start in Safe Mode:
From Settings:
Open Settings > Update & Security > Recovery.
Under "Advanced startup," select Restart now.
After your PC restarts to the Choose an option screen, select Troubleshoot > Advanced options > Startup Settings > Restart.
After your PC restarts, you'll see a list of options. Select 4 or press F4 to start in Safe Mode. If you need to use the internet, select 5 or press F5 for Safe Mode with Networking.
From the Sign-in Screen:
Restart your PC. When you get to the sign-in screen, hold the Shift key down while you select Power > Restart.
After your PC restarts, follow the steps above.
From a Black or Blank Screen:
Press the power button to turn off your device, then turn it back on. Repeat this two more times.
After the third time, your device will start in the Windows Recovery Environment (WinRE).
From the Choose an option screen, follow the steps to enter Safe Mode.
Additional Help:
Windows Update: Ensure your system has the latest patches.
Blue Screen Troubleshooter: In Windows, open Get Help, type Troubleshoot BSOD error, and follow the guided walkthrough.
Online Troubleshooting: Visit Microsoft's support page and follow the recommendations under "Recommended Help."
If none of those steps help to resolve your Blue Screen error, please try the Blue Screen Troubleshooter in the Get Help app:
- In Windows, open Get Help.
- In the Get Help app, type Troubleshoot BSOD error.
- Follow the guided walkthrough in the Get Help app.
[Note: If you're not on a Windows device, you can run the Blue Screen Troubleshooter on your browser by going to Contact Microsoft Support and typing Troubleshoot BSOD error. Then follow the guided walkthrough under "Recommended Help."]
For detailed steps and further assistance, please refer to the Microsoft support portal or contact their support team.
CrowdStrike’s Response:
In the statement given by CrowdStrike, they have clearly mentioned it is not any cyberattack and their resources are working to fix the issue on Windows. Further, they have identified the deployment issue and fixed the same. Crowdstrike mentions about their problematic versions as follows:
- “Channel file "C-00000291*.sys" with timestamp of 0527 UTC or later is the reverted (good) version.
- Channel file "C-00000291*.sys" with timestamp of 0409 UTC is the problematic version.
Note: It is normal for multiple "C-00000291*.sys files to be present in the CrowdStrike directory - as long as one of the files in the folder has a timestamp of 0527 UTC or later, that will be the active content.”
The CrowdStrike will be providing latest updates on the same and advises their customers and organizations to contact their officials officially to get latest updates and accurate information. It is encouraged to refer to customer’s support portal for further help.
Stay safe and ensure regular backups to mitigate the impact of such issues.
References:
https://status.cloud.microsoft/
https://www.crowdstrike.com/blog/statement-on-falcon-content-update-for-windows-hosts/
