#FactCheck - Debunked: Viral Video Falsely Claims Allu Arjun Joins Congress Campaign

Introduction

Sexual Offences against children have recently come under scrutiny after the decision of the Madras High Court which has ruled that watching and downloading child sexual porn is an inchoate crime. In response, the Supreme Court, on 23 September 2024, ruled that Section 15 of the POCSO and Section 67B of the IT Act penalise any form of use of child pornography, including storing and watching such pornographic content. Along with this, the Supreme Court has further recommended replacing the term “Child Pornography” which it said acts as a misnomer and does not capture the full extent of the crime, with a more inclusive term “Child Sexual Exploitative and Abuse Material” (CESAM). This term would more accurately reflect the reality that these images and videos are not merely pornographic but are records of incidents, where a child has either been sexually exploited and abused or where any abuse of children has been portrayed through any self-generated visual depiction.

Intermediaries cannot claim exemption from Liability U/S 79 

Previously, intermediaries claimed safe harbour by only complying with the requirements stipulated under the  MOU. As per the decision of the SC, now, an intermediary cannot claim exemption from the liability under Section 79 of the IT Act for any third-party information, data, or communication link made available or hosted by it unless due diligence is conducted by it and compliance is made of these provisions of the POCSO Act. This is as per the provisions of Sections 19 and 20 of the POCSO read with Rule 11 of the POCSO Rules which have a mandatory nature.

The due diligence under section 79 of the IT Act includes the removal of child pornographic content and immediate reporting of such content to the concerned police units in the manner specified under the POCSO Act and the Rules. In this way, the Supreme Court has broadened the Interpretation and scope of the ‘Due Diligence’ obligation under section 79 of the IT Act. It was also stated that is to be duly noted that merely because an intermediary complies with the IT Act, will not absolve it of any liability under the POCSO. This is unless it duly complies with the requirements and procedure set out under it, particularly Section 20 of the POCSO Act and Rule 11 of the POCSO Rules.

Bar on Judicial Use of the term ‘Child Porn’

Supreme Court found that the term child pornography can be trivialised as pornography is often seen as a consensual act between adults. Supreme Court emphasised using the term Child Sexual Exploitative and Abuse Material  (CESAM) as it would emphasise the exploitation of children highlight the criminality of the act and shift the focus to a more robust framework to counter these crimes. The Supreme Court also stated that the Union of India should consider amending the POCSO Act to replace the "child pornography" term with "child sexual exploitative and abuse material" (CSEAM). This would reflect more accurately on the reality of such offences. Supreme Court also directed that the term "child pornography" shall not be used in any judicial order or judgment, and instead, the term "CSEAM" should be endorsed.

Curbing CSEAM Content on Social Media Platforms

Social Media Intermediaries and Expert Organisations play an important role in curbing CESAM content. Per the directions of the Apex Court, a need to impart positive age-appropriate sex education to prevent youth from engaging in harmful sexual behaviours, including the distribution, and viewing of CSEAM is important and all stakeholders must engage in proactive measures to counter these offences which are under the umbrella of CSEAM. This should entail promoting age-appropriated and lawful content on social media platforms and social media platforms to ensure compliance with applicable provisions.  

Conclusion 

In light of the Supreme Court’s landmark ruling, it is imperative to acknowledge the pressing necessity of establishing a safer online environment that shields children from exploitation. The shift towards using "Child Sexual Exploitative and Abuse Material" (CSEAM) emphasizes the severity of the crime and the need for a vigilant response. The social media intermediaries must respect their commitment to report and remove exploitive content and must ensure compliance with POCSO and IT regulations. Furthermore, comprehensive, age-appropriate sex education can also be used as a preventive measure, educating young people about the moral and legal ramifications of sexual offences, encouraging respect and awareness and ensuring safer cyberspace. 

References

• https://www.scconline.com/blog/post/2024/09/23/storing-watching-child-pornography-crime-supreme-court-pocso-it-act/#:~:text=Supreme%20Court%3A%20The%20bench%20of,watching%20of%20such%20pornographic%20content
• https://timesofindia.indiatimes.com/india/supreme-court-viewing-child-porn-is-offence-under-pocso-it-acts/articleshow/113613572.cms
• https://bwlegalworld.com/article/dont-use-term-child-pornography-says-sc-urges-parliament-to-amend-pocso-act-534053  
• https://indianexpress.com/article/india/child-pornography-law-pocso-it-supreme-court-9583376/

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Introduction

The insurance industry is a target for cybercriminals due to the sensitive nature of the information it holds. This makes it essential for insurance companies to have robust cybersecurity measures to protect their data and customers’ personal information.

Cyber fraud in India’s insurance industry is increasing. It is reported that the Indian insurance sector has witnessed a surge in cyber-attacks, with several instances of data breaches, identity thefts, and financial fraud being reported. These cybercrimes not only pose a significant threat to the financial stability of the insurance industry but also to the privacy and security of policyholders.

Cyber Frauds in the Insurance Industry

The insurance industry in India has been the target of increasing cyber fraud in recent years. With the growing digital transformation trend, insurance companies have become increasingly vulnerable to cyber-attacks. Cyber frauds in the insurance industry are initiated by hackers who use various techniques such as phishing, malware, ransomware, and social engineering to gain unauthorised access to policyholders’ personal data and sensitive information

Kinds of cyber frauds in the insurance industry

It is essential for insurers and policyholders alike to be aware of these kinds of cyber-attacks on insurance companies in today’s digital age. Staying educated about these threats can help prevent them from happening in the future.

Identity theft– One common type of cyber fraud that occurs in the insurance industry is identity theft. In this type of fraud, criminals steal personal information such as name, address, date of birth and social security numbers through phishing emails or fraudulent websites. They then use this information to open fraudulent policies or access existing ones.

Payment fraud- Another type of cyber fraud that is on the rise is payment fraud. In this type of fraud, hackers intercept electronic payments made by policyholders or agents using fake bank accounts or compromised payment gateways. The money is then siphoned into untraceable accounts, making it difficult for law enforcement agencies to identify and arrest the perpetrators.

Phishing attacks- Where the fraudsters posed as company officials and sent emails to policyholders requesting their account details. The unsuspecting customers fell for this scam and shared their sensitive information, which was then used to access their accounts and steal funds.

Hacking- Where hackers breach the company’s system to gain access to policyholder data. The hackers’ stoles personal records, including names, addresses, phone numbers, social security numbers, and financial information, which they later sell on the dark web.

Fake policies scam- Fraudsters create fake policies using stolen identities and collect premiums from innocent customers. The insurer then voided these policies due to fraudulent activity leaving those people without valid coverage when they needed it most. The victims suffer significant financial losses due to this scam.

Fake Insurance Websites- Discuss the creation of deceptive websites that imitate well-known insurance companies, where unsuspecting individuals provide their personal details, leading to identity theft or financial losses.

Prevention of Cyber Frauds in the Insurance Industry- Best practices to follow

Prevention is better than cure, which also holds true in the case of cyber fraud in the insurance industry. The industry must take proactive steps to prevent such frauds from occurring in the first place. One of the most effective ways to do so is by investing in cybersecurity measures that are specifically designed for the insurance sector.

Insurance companies must conduct regular employee training programs on cybersecurity best practices. This includes educating employees on how to identify and avoid phishing emails, create strong passwords, and recognise potential cyber threats. Companies should also establish a reporting mechanism for employees to report suspicious activity or incidents immediately.

Having proper access controls in place is also necessary. This means limiting access to sensitive data only to those employees who need it, implementing two-factor authentication, and regularly monitoring user activity logs. Regular audits can also provide an extra layer of protection against potential threats by identifying vulnerabilities that may have been overlooked during routine security checks.

Another essential step is encrypting all data transmitted between different systems and devices. Encryption scrambles data into unreadable codes that can only be deciphered using a decryption key, making it difficult for hackers to intercept or steal information in transit.

Legal Framework for Cyber Frauds in the Insurance Industry

The legal framework for cyber fraud in the insurance industry is critical to preventing such crimes. The Insurance Regulatory and Development Authority of India (IRDAI) has issued guidelines for insurers to establish a cybersecurity framework. The guidelines require insurers to conduct regular risk assessments, implement security measures, and ensure compliance with data privacy laws.

The Information Technology Act 2000, is another significant piece of legislation dealing with cyber fraud in India. The act defines offences such as unauthorised access to a computer system, hacking, and tampering with data. It also provides for stringent penalties and imprisonment for those found guilty of such offences.

The IRDAI’s guidelines provide insurers with a roadmap to establish robust cybersecurity measures to help prevent cyber fraud in the insurance industry. Stringent implementation of these guidelines will go a long way in safeguarding sensitive customer information from falling into the wrong hands.

Best Practices for Insurers and Policyholders

Insurers:

Implementing Strong Authentication: Encouraging the use of multi-factor authentication and secure login processes to safeguard customer accounts and prevent unauthorised access.

Regular Employee Training: Conduct cybersecurity awareness programs to educate employees about the latest threats and preventive measures.

Investing in Advanced Technologies: Utilizing robust cybersecurity tools and systems to promptly detect and mitigate potential cyber threats.

Policyholders:

Vigilance and Awareness: Policyholders must stay vigilant while sharing personal information online and verify the authenticity of insurance websites and communication channels.

Regular Updates and Patches: Advising individuals to keep their devices and software up to date to minimise vulnerabilities that cybercriminals can exploit.

Secure Online Practices: Encouraging the use of strong and unique passwords, avoiding sharing sensitive information on unsecured networks, and exercising caution when clicking on suspicious links or attachments.

Conclusion

As the Indian insurance industry embraces digitisation, the risk of cyber scams and data breaches becomes a significant concern. Insurers and policyholders must collaborate to ensure robust cybersecurity measures are in place to protect sensitive information and financial interests.

It is essential for insurance companies to invest in robust cybersecurity measures that can detect and prevent fraud attempts. Additionally, educating employees on the dangers of cyber fraud and implementing strict compliance measures can go a long way in mitigating risks. With these efforts, the insurance industry can continue to provide trustworthy and reliable services to its customers while protecting against cyber threats. As technology continues to evolve, it is imperative that the insurance industry adapts accordingly and remains vigilant against emerging threats.

According to Statista, the number of users in India's digital assets market is expected to reach 107.30m users by 2025 (Impacts of Inflation on Financial Markets, August 2023). India's digital asset market has been experiencing exponential growth fueled by the increased adoption of cryptocurrencies and blockchain technology. This furthers the need for its regulation. Digital assets include cryptocurrencies, NFTs, asset-backed tokens, and tokenised real estate. 

India has defined Digital Assets under Section 47(A) of the Income Tax Act, 1961. The Finance Act 2022-23 has added the word 'virtual' to make it “Virtual Digital Assets”. A “virtual digital asset” is any information or code, number, or token, created through cryptographic methods or otherwise, by any name, giving a digital representation of value exchanged with or without consideration. A VDA should contain an inherent value and represent a store of value or unit of account, functional in any financial transaction or investment. These can be stored,  transferred, or traded in electronic format. 

Digital Asset Governance: Update and Future Outlook

Indian regulators have been conservative in their approach towards digital assets, with the Reserve Bank of India first issuing directions against cryptocurrency transactions in 2018. This ban was removed by the Supreme Court through a court order in 2020. The presentation of the Cryptocurrency and Regulation of Official Digital Currency Bill of 2021 is a fairly important milestone in its attempts to lay down the framework for issuing an official digital currency by the Reserve Bank of India. While some digital assets seem to have potential, like the Central Bank Digital Currencies (CBDCs) and blockchain-based financial applications, a blanket prohibition has been enforced on private cryptocurrencies.

However, in more recent trends, the landscape is changing as the RBI's CBDC is to provide a state-backed digital alternative to cash under a more structured regulatory framework. This move seeks to balance state control with innovation on investor safety and compliance, expecting to reduce risk and enhance security for investors by enacting strict anti-money laundering and know-your-customer laws. Highlighting these developments is important to examine how global regulatory trends influence India's digital asset policies.

Impact of Global Development on India’s Approach 

Global regulatory developments have an impact on Indian policies on digital assets. The European Union's Markets in Crypto-assets (MiCA) is to introduce a comprehensive regulatory framework for cryptocurrencies that could act as an inspiration for India. MiCA regulation covers crypto-assets that are not currently regulated by existing financial services legislation. Its particular focus on consumer protection and market integrity resonates with India in terms of investigating needs related to digital assets, including fraud and price volatility. Additionally, evolving policies in the US, such as regulating crypto exchanges and classifying certain tokens as securities, could also form the basis for India's regulatory posture.

Collaboration on the international level is also a chief contributing factor. India’s regular participation in global forums like the G20, facilitates an opportunity to align its regulations on digital assets with other countries, tending toward an even more standardised and predictable framework for cross-border transactions. This can significantly help India given that the nation  has a huge diaspora providing a critical inflow of remuneration.

CyberPeace Outlook

Though digital assets offer many opportunities to India, challenges also exist. Cryptocurrency volatility affects investors, posing concerns over fraud and illicit dealings. A balance between the need for innovation and investor protection is paramount to avoid killing the growth of India's digital asset ecosystem with overly restrictive regulations.

Financial inclusion, efficient cross-border payments with low transaction costs, and the opening of investment opportunities are a few opportunities offered by digital assets. For example, the tokenisation of real estate throws open real estate investment to smaller investors. To strengthen the opportunities while addressing challenges, some policy reforms and new frameworks might prove beneficial. 

CyberPeace Policy Recommendations

• Establish a regulatory sandbox for startups working in the area of blockchain and digital assets. This would allow them to test innovative solutions in a controlled environment with regulatory oversight minimising risks.
• Clear guidelines for the taxation of digital assets should be provided as they will ensure transparency, reduce ambiguity for investors, and promote compliance with tax regulations. Specific guidelines can be drawn from the EU's MiCA regulation.  
• Workshops, online resources, and campaigns are some examples of initiatives aimed at improving consumer awareness about digital assets, benefits and associated risks that should be implemented. Partnerships with global fintech firms will provide a great opportunity  to learn best practices.

Conclusion

India is positioned at a critical juncture with respect to the debate on digital assets. The challenge which lies ahead is one of balancing innovation with effective regulation. The introduction of the Central Bank Digital Currency (CBDC) and the development of new policies signal a willingness on the part of the regulators to embrace the digital future. In contrast, issues like volatility, fraud, and regulatory compliance continue to pose hurdles. By drawing insights from global frameworks and strengthening ties through international forums, India can pave the way for a secure and dynamic digital asset ecosystem. Embracing strategic measures such as regulatory sandboxes and transparent tax guidelines will not only protect investors but also unlock the immense potential of digital assets, propelling India into a new era of financial innovation and inclusivity.

References

• https://www.weforum.org/agenda/2024/10/different-countries-navigating-uncertainty-digital-asset-regulation-election-year/ 
• https://www.acfcs.org/eu-passes-landmark-crypto-regulation 
• https://www.indiabudget.gov.in/budget2022-23/doc/Finance_Bill.pdf 
• https://www.weforum.org/agenda/2024/10/different-countries-navigating-uncertainty-digital-asset-regulation-election-year/
• https://www3.weforum.org/docs/WEF_Digital_Assets_Regulation_2024.pdf 

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