Cyber Threats on Decentralised Autonomous Organisations

Introduction

MSMEs, being the cornerstone of the Indian economy, are one of the most vulnerable targets in cyberspace and no enterprise is too small to be a target for malicious actors. MSMEs hardly ever perform a cyber-risk assessment, but when they do, they may run into a number of internal problems, such as cyberattacks brought on by inadequate networking security, online fraud, ransomware assaults, etc.  Tackling cyber threats in MSMEs is critical mainly because of their high level of dependance on digital technologies and the growing sophistication of cyber attacks. Protecting them from cyber threats is essential, as a security breach can have devastating consequences, including financial loss, reputational damage, and operational disruptions.

Key Cyber Threats that MSMEs are facing

MSMEs are most vulnerable to are phishing attacks, ransomware, malware and viruses, insider threats, social engineering attacks, supply chain attacks, credential stuffing and brute force attacks and Distributed Denial of Service (DDoS) Attacks. Some of these attacks are described as under-

• Insider threats arise from employees or contractors who intentionally or unintentionally compromise security. It involves data theft, misuse of access privileges, or accidental data exposure. 
• Social engineering attacks involve manipulating individuals into divulging confidential information or performing actions that compromise security by pretexting, baiting, and impersonation. 
• Supply chain attacks exploit the trust in relationships between businesses and their suppliers and introduce malware, compromise data integrity, and disrupt operations.
• Credential stuffing and brute force attacks give unauthorized access to accounts and systems, leading to data breaches and financial losses.

Challenges Faced by MSMEs in Cybersecurity

The challenges faced  by MSMEs in cyber security are mainly due to limited resources and budget constraints which leads to other issues such as a lack of specialized expertise as MSMEs often lack the IT support of cyber security experts. Awareness and training are needed to mitigate poor understanding of cyber threats and their complexity in nature. Vulnerabilities in the supply chain are present as they rely on third-party vendors and partners often, introducing potential supply chain vulnerabilities. Regulatory compliance is often complex and is taken seriously only when an issue crops up but it needs special attention especially with the DPDP Act coming in. The lack of an incident response plan leads to delayed and inadequate responses to cyber incidents, increasing the impact of breaches.

Best Practices for Tackling Cyber Threats for MSMEs

To effectively tackle cyber threats, MSMEs should adopt a comprehensive approach such as:

• Implementing and enforcing strong access controls by using MFA or 2FA and password policies. Limiting employee access as role based and updating the same as and when needed.
• Regularly apply security patches and use automated patch management solutions to prevent exploitation of known vulnerabilities.
• Conduct employee training and awareness programs and promote a security-first approach for the employees and assessing employee readiness to identify improvement areas.
• Implement network security measures by using firewalls and intrusion detection systems. Using secure Wi-Fi networks via strong encryptions and changing default credentials for the router are recommended, as is segmenting networks to limit lateral movement within the network in case of a breach.
• Regular data backup ensures that in case of an attack, data loss can be recovered and made available in secure offsite locations to protect it from unauthorized access. 
• Developing an incident response plan that outlines the roles, responsibilities and procedure for responding to cyber incidents with regular drills to ensure readiness and clear communication protocols for incident reporting to regulators, stakeholders and customers.
• Implement endpoint security solutions using antivirus and anti-malware softwares. Devices should be against unauthorized access and implement mobile device management solutions enforcing security policies on employee-owned devices used for work purposes.
• Cyber insurance coverage will help in transferring financial risks in case of cyber incidents. It should have comprehensive coverage including business interruptions, data restoration, legal liabilities and incident response costs.

Recommended Cybersecurity Solutions Tailored for MSMEs

1. A Managed Security Service Provider offers outsourced cybersecurity services, including threat monitoring, incident response, and vulnerability management that may be lacking in-house.
2. Cloud-Based Security Solutions such as firewall as a service and Security Information and Event Management , provide scalable and cost-effective protection for MSMEs.
3. Endpoint Detection and Response (EDR) Tools detect and respond to threats on endpoints, providing real-time visibility into potential threats and automating incident response actions.
4. Security Awareness Training Platforms deliver interactive training sessions and simulations to educate employees about cybersecurity threats and best practices.

Conclusion

Addressing cyber threats in MSMEs requires a proactive and multi-layered approach that encompasses technical solutions, employee training, and strategic planning. By implementing best practices and leveraging cybersecurity solutions tailored to their specific needs, MSMEs can significantly enhance their resilience against cyber threats. As cyber threats continue to evolve, staying informed about the latest trends and adopting a culture of security awareness will be essential for MSMEs to protect their assets, reputation, and bottom line.

References:

• https://economictimes.indiatimes.com/small-biz/security-tech/security/cyber-security-pitfalls-and-how-negligence-can-be-expensive-for-msmes/articleshow/99508822.cms?from=mdr
• https://www.investopedia.com/financial-edge/0112/3-ways-cyber-crime-impacts-business.aspx 
• https://www.financialexpress.com/business/sme-msme-tech-cisco-launches-new-tool-for-smbs-to-assess-their-cybersecurity-readiness-2538348/ 
• https://www.cloverinfotech.com/blog/small-businesses-big-problems-are-cyber-attacks-crushing-indias-msmes/ 

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Introduction

In today's era of digitalised community and connections, social media has become an integral part of our lives. A large number of teenagers are also active and have their accounts on social media. They use social media to connect with their friends and family. Social media offers ease to connect and communicate with larger communities and even showcase your creativity. On the other hand, it also poses some challenges or issues such as inappropriate content, online harassment, online stalking, misuse of personal information, abusive and dishearted content etc. There could be unindented consequences on teenagers' mental health by such threats or overuse of social media. The data shows some teens spend hours a day on social media hence it has a larger impact on them whether we notice it or not.  Social media addiction and its negative repercussions such as overuse of social media by teens and online threats and vulnerabilities is a growing concern that needs to be taken seriously by social media platforms, regulatory policies and even user's responsibilities. Recently Colorado and California led a joint lawsuit filed by 33 states in the U.S. District Court for the Northern District of California against meta on the concern of child safety.

Meta and concern of child users safety

Recently Meta, the company that owns Facebook, Instagram, WhatsApp, and Messenger, has been sued by more than three dozen states for allegedly using features to hook children to its platforms. The lawsuit claims that Meta violated consumer protection laws and deceived users about the safety of its platforms. The states accuse Meta of designing manipulative features to induce young users' compulsive and extended use, pushing them into harmful content. However, Meta has responded by stating that it is working to provide a safer environment for teenagers and expressing disappointment in the lawsuit.

According to the complaint filed by the states, Meta “designed psychologically manipulative product features to induce young users’ compulsive and extended use" of platforms like Instagram. The states allege that Meta's algorithms were designed to push children and teenagers into rabbit holes of toxic and harmful content, with features like "infinite scroll" and persistent alerts used to hook young users. However, meta responded with disappointment with a lawsuit stating that meta working productively with companies across the industry to create clear, age-appropriate standards for the many apps.

Unplug for sometime

Overuse of social media is associated with increased mental health repercussions along with online threats and risks. Social media’s effect on teenagers is driven by factors such as inadequate sleep, exposure to cyberbullying and online threats and lack of physical activity. Its admitted that social media can help teens feel more connected to their friends and their support system and showcase their creativity to the online world.  However, social media overuse by teens is often linked with underlying issues that require attention. To help teenagers, encourage them for responsible use and unplug from social media for some time, encourage them to get outside in nature, do physical activities, and express themselves creatively.  

Understanding the threats & risks

• Psychological effects 

• Addiction: Excessive use of social media will lead to procrastination and excessively using social media can lead to physical and psychological addiction because it triggers the brain's reward system. 
• Mental Conditions Associated: Excessively using social media can be harmful for mental well-being which can also lead to depression and anxiety, self-consciousness and may also lead to social anxiety disorder.
• Eyes, Carpal tunnel syndrome: Excessive spending time on screen may lead to put a real strain on your eyes. Eye problems caused by computer/phone screen use fall under computer vision syndrome (CVS). Carpal tunnel syndrome is caused by pressure on the median nerve.

• Cyberbullying: Cyberbullying is one of the major concerns faced in online interactions on social media. Cyberbullying takes place using the internet or other digital communication technology to bully, harass, or intimidate others and it has become a major concern of online harassment on popular social media platforms. Cyberbullying may include spreading rumours or posting hurtful comments. Cyberbullying has emerged as a phenomenon that has a socio-psychological impact on the victims. 
• Online grooming: Online grooming is defined as the tactics abusers deploy through the internet to sexually exploit children. The average time for a bad actor to lure children into his trap is 3 minutes, which is a very alarming number. 
• Ransomware/Malware/Spyware: Cybercrooks impose threats such as ransomware, malware and spyware by deploying malicious links on social media. This poses serious cyber threats, and it causes consequences such as financial losses, data loss, and reputation damage. Ransomware is a type of malware which is designed to deny a user or organisation access to their files on the computer. On social media, cyber crooks post malicious links which contain malware, and spyware threats. Hence it is important to be cautious before clicking on any such suspicious link.
• Sextortion: Sextortion is a crime where the perpetrator threatens the victim and demands ransom or asks for sexual favours by threatening the victim to expose or reveal the victim’s sexual activity. It is a kind of sexual blackmail, it may take place on social media and youngsters are mostly targeted. The cyber crooks also misuse the advanced AI Deepfake technology which is capable of creating realistic images or videos which in actuality are created by machine algorithms. Deepfakes technology since easily accessible, is misused by fraudsters to commit various crimes including sextortion or deceiving and scamming people through fake images or videos which look realistic. 

• Child sexual abuse material(CSAM): CSAM is inappropriate or illicit content which is prohibited by the laws and regulatory guidelines. Child while using the internet if encounters age-restricted or inappropriate content which may be harmful to them child. Through regulatory guidelines, internet service providers are refrained from hosting the CSAM content on the websites and blocking such inappropriate or CSAM content. 

• In App purchases: The teen user also engages in-app purchases on social media or online gaming where they might fall into financial fraud or easy money scams. Where fraudster targets through offering exciting job offers such as part-time job, work-from-home job, small investments, liking content on social media, and earning money out of this. This has been prevalent on social media and fraudsters target innocent people ask for their personal and financial information, and commit financial fraud by scamming people on the pretext of offering exciting offers.

Safety tips:

To stay safe while using social media teens or users are encouraged to follow the best practices and stay aware of the online threats. Users must keep in regard to the best practices. Such as;

• Safe web browsing.
• Utilising privacy settings of your social media accounts.
• Using strong passwords and enabling two-factor authentication.
• Be careful about what you post or share.
• Becoming familiar with the privacy policy of the social media platforms.
• Being selective of adding unknown users to your social media network.
• Reporting any suspicious activity to the platform or relevant forum.

Conclusion:

Child safety is a major concern on social media platforms. Social media-related offences such as cyberstalking, hacking, online harassment and threats, sextortion, and financial fraud are seen as the most occurring cyber crimes on social media. The tech giants must ensure the safety of teen users on social media by implementing and adopting the best mechanisms on the platform. CyberPeace Foundation is working towards advocating for a Child-friendly SIM to protect from the illicit influence of the internet and Social Media. 

References:

• https://www.scientificamerican.com/article/heres-why-states-are-suing-meta-for-hurting-teens-with-facebook-and-instagram/
• https://www.nytimes.com/2023/10/24/technology/states-lawsuit-children-instagram-facebook.html

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Introduction

India's National Commission for Protection of Child Rights (NCPCR) is set to approach the Ministry of Electronics and Information Technology (MeitY) to recommend mandating a KYC-based system for verifying children's age under the Digital Personal Data Protection (DPDP) Act. The decision to approach or send recommendations to MeitY was taken by NCPCR in a closed-door meeting held on August 13 with social media entities. In the meeting, NCPCR emphasised proposing a KYC-based age verification mechanism. In this background, Section 9 of the Digital Personal Data Protection Act, 2023 defines a child as someone below the age of 18, and Section 9 mandates that such children have to be verified and parental consent will be required before processing their personal data.

Requirement of Verifiable Consent Under Section 9 of DPDP Act

Regarding the processing of children's personal 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 lawful guardian. Additionally, behavioural monitoring or targeted advertising directed at children is prohibited. 

Ongoing debate on Method to obtain Verifiable Consent

Section 9 of the DPDP Act gives parents or lawful guardians more control over their children's data and privacy, and it empowers them to make decisions about how to manage their children's online activities/permissions. However, obtaining such verifiable consent from the parent or legal guardian presents a quandary. It was expected that the upcoming 'DPDP rules,' which have yet to be notified by the Central Government, would shed light on the procedure of obtaining such verifiable consent from a parent or lawful guardian.

However, In the meeting held on 18th July 2024, between MeitY and social media companies to discuss the upcoming Digital Personal Data Protection Rules (DPDP Rules), MeitY stated that it may not intend to prescribe a ‘specific mechanism’ for Data Fiduciaries to verify parental consent for minors using digital services. MeitY instead emphasised obligations put forth on the data fiduciary under section 8(4) of the DPDP Act to implement “appropriate technical and organisational measures” to ensure effective observance of the provisions contained under this act. 

In a recent update, MeitY held a review meeting on DPDP rules, where they focused on a method for determining children's ages. It was reported that the ministry is making a few more revisions before releasing the guidelines for public input.

CyberPeace Policy Outlook

CyberPeace in its policy recommendations paper published last month, (available here) also advised obtaining verifiable parental consent through methods such as Government Issued ID, integration of parental consent at ‘entry points’ like app stores,  obtaining consent through consent forms, or drawing attention from foreign laws such as California Privacy Law, COPPA, and developing child-friendly SIMs for enhanced child privacy.

CyberPeace in its policy paper also emphasised that when deciding the method to obtain verifiable consent, the respective platforms need to be aligned with the fact that verifiable age verification must be done without compromising user privacy. Balancing user privacy is a question of both technological capabilities and ethical considerations. 

DPDP Act is a brand new framework for protecting digital personal data and also puts forth certain obligations on Data Fiduciaries and provides certain rights to Data Principal. With upcoming ‘DPDP Rules’ which are expected to be notified soon, will define the detailed procedure for the implementation of the provisions of the Act. MeitY is refining the DPDP rules before they come out for public consultation. The approach of NCPCR is aimed at ensuring child safety in this digital era. We hope that MeitY comes up with a sound mechanism for obtaining verifiable consent from parents/lawful guardians after taking due consideration to recommendations put forth by various stakeholders, expert organisations and concerned authorities such as NCPCR. 

References

1. https://www.moneycontrol.com/technology/dpdp-rules-ncpcr-to-recommend-meity-to-bring-in-kyc-based-age-verification-for-children-article-12801563.html
2. https://pune.news/government/ncpcr-pushes-for-kyc-based-age-verification-in-digital-data-protection-a-new-era-for-child-safety-215989/#:~:text=During%20this%20meeting%2C%20NCPCR%20issued,consent%20before%20processing%20their%20data
3. https://www.hindustantimes.com/india-news/ncpcr-likely-to-seek-clause-for-parents-consent-under-data-protection-rules-101724180521788.html
4. https://www.drishtiias.com/daily-updates/daily-news-analysis/dpdp-act-2023-and-the-isssue-of-parental-consent

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