#FactCheck - Misleading Video Allegedly Depicting Trampling of Indian Tri-colour in Kerala or Tamil Nadu Circulates on Social Media

Data localisation refers to restrictions in the data flow by limiting the physical storage and processing of data within a given jurisdiction’s boundaries.  

An obvious benefit contributing to the importance of data localisation is the privacy benefits it offers. In addition to this, data localisation also has the potential to safeguard sensitive data and decrease the probability of cyber-attacks. In India, data localisation has become a key issue in the last decade due to the increase in the discourse for data privacy. 

The Legal Framework in India

India passed the Digital Personal Data Protection Act of 2023 which directs the data fiduciaries (collectors and processors of digital personal data) to store the data of Indian citizens within India. This push for data localisation aligns with India’s position to enhance privacy, national security and regulatory control. It further requires data fiduciaries to adhere to the principles of data minimisation, purposeful limitation and consent of the data principles. Further, Section 17 of the Act prohibits the transfer of sensitive personal data to foreign jurisdictions unless they meet satisfactory privacy protection standards. 

The Reserve Bank of India, via a circular for Payments Data Regulation in 2018, has mandated that all payment data be stored in India, though it can be processed abroad. It requires the telecom sector to ensure local storage and local processing of subscriber information. It further prohibits the transferring of subscribers’ account information overseas.

MeitY’s Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, emphasise data localisation, specifically when it involves government or critical data. The main idea behind this is that data related to Indian citizens or government activities should remain accessible to Indian law enforcement agencies and is not subject to external jurisdiction.

Common Misinformation about Data Localisation and its Impact

Misconceptions fuel misinformation and influence public perception and policy debates. A common misconception is that all data must be stored in India. It should be noted that non-critical and non-sensitive data are not subject to localisation, and can be cleared for cross-border transfers under specific circumstances.

Another misconception is that data localisation alone ensures complete security. A robust cybersecurity approach, infrastructure and capabilities are what guarantee security and this holds true regardless of the location of where the data is stored. 

The notion that small businesses and startups will suffer the most is untrue. While data localisation policies may lead to increased costs, they foster innovation in the domestic infrastructure and services. This potentially fuels development and innovation in these small businesses and startups. Claims that data localisation will stifle global business are unfounded. 

Proper regulations for data transfers can help balance data flows, enabling international trade while ensuring data sovereignty.

Real Impact of Data Localisation

Data localisation impacts several domains and has both positive and negative outcomes.

• It can be a driver for investment in local data centres and infrastructure, thereby inducing employment generation and boosting the domestic economy. And in contrast, the compliance costs may rise especially for MNCs that need to maintain multiple data storage systems. 
• It can expedite the growth of local technology ecosystems while encouraging innovation in cloud computing and data storage solutions. On the other hand, small businesses might face struggles to afford the required infrastructure updates and upgrades.
• Law enforcement agencies will be able to gain access to data more swiftly while avoiding lengthy processes such as the Mutual Legal Assistance Treaties (MLATs). However, it should be noted that storing data locally does not automatically ensure that they are immune from attacks and breaches.
• A balance between sovereignty and global partnerships is a challenge that emerges with data localisation. International Trade Relationships are vulnerable to data localisations where countries favour a free data flow. This can hamper foreign collaborations with companies that rely on global data systems.

CyberPeace Outlook

It is important to clear misinformation about data localisation, some strategies that can be undertaken are:

• Launching public awareness campaigns to educate the stakeholders about the real requirements and the benefits of data localisation. Misinformation about data restrictions and security guarantees should be tackled fairly quickly. 
• A balanced approach that promotes local economic development while at the same time allowing for the necessary cross-border data flows and creating a flexible and friendly business environment is important.
• India should work on international frameworks to streamline the process of data-sharing with other nations. This would protect national interests while making global cooperation easier.

Conclusion

Data localisation in India presents a valuable opportunity to enhance privacy, bolster national security, and stimulate economic growth through local infrastructure investment. Yet, addressing common misconceptions is crucial; the belief that all data must be stored domestically or that localisation alone ensures security is misleading. 

It’s vital to pair local data storage with robust cybersecurity measures and foster international cooperation. Supporting small businesses, which may face challenges due to localisation requirements, is equally important. By addressing misinformation, promoting flexible regulations, and working towards global data-sharing frameworks, India can effectively manage the complexities of data localisation, safeguarding national interests while encouraging innovation and economic development. 

References

• https://www.thehindu.com/sci-tech/technology/are-data-localisation-requirements-necessary-and-proportionate/article66131957.ece 
• https://carnegieendowment.org/research/2021/04/how-would-data-localization-benefit-india?lang=en
• https://www.rbi.org.in/commonperson/English/Scripts/FAQs.aspx?Id=2995
• https://www.meity.gov.in/writereaddata/files/Information%20Technology%20%28Intermediary%20Guidelines%20and%20Digital%20Media%20Ethics%20Code%29%20Rules%2C%202021%20%28updated%2006.04.2023%29-.pdf 

Introduction

The advent of Electronic Vehicles (EVs) represents a transformative leap towards a more sustainable and environmentally conscious transportation future by nations. However, as these vehicles become increasingly connected and reliant on advanced technological systems, a parallel concern emerges—data privacy. Integrating sophisticated technologies in EVs, such as GPS tracking, biometric authentication, and in-car connectivity, raises substantial questions about the collection, storage, and potential misuse of sensitive personal information. This intersection of automotive innovation and data privacy underscores the need for comprehensive solutions and regulatory frameworks to ensure that the benefits of electric vehicles are realised without compromising the privacy and security of their users.

Electronic vehicles primarily record three types of data;

1. Driving behaviour and patterns: The e-vehicle records braking and driving patterns, including acceleration, speed, and swerve. Some vehicles even track air conditioning usage and airbag deployment to determine the point of failure in the event of a crash.
2. Location data: The e-vehicles also track GPS systems to gauge the speed and direction of the vehicle.
3. EV functions and use of telematic services: Monitoring of EV functions includes battery use management, battery charging history, battery deterioration, electrical system functions and software version information.

Data Privacy requirements of companies

Companies manufacturing e-vehicles are saddled with several data privacy requirements as concerns about consumer safety. Data collected by e-vehicles may be sensitive in nature. Location tracking is a key issue that has garnered attention. The constant recording of a driver's whereabouts can lead to the creation of detailed profiles, raising questions about the potential misuse or unauthorised access to this sensitive information. The risk of surveillance, stalking, or even theft of valuable personal data is a genuine concern for EV owners.

Moreover, integrating smart features, such as voice recognition, biometric authentication, and in-car personal assistants, adds another layer of complexity. These features require the collection and processing of personal data. If not handled securely, they may become vulnerable to hacking or unauthorised access, leading to identity theft or other malicious activities. Additionally, Smart charging systems offer convenience by allowing remote monitoring and control of charging, but they also gather extensive data. The geographical data collected during charging may raise concerns about location privacy.

Striking a delicate balance between leveraging this data for enhancing vehicle performance and user experience while safeguarding the privacy of EV owners is paramount. Transparent privacy policies, secure data storage practices, and stringent encryption protocols are essential components of a comprehensive approach to data protection. If a company is eyeing the international market or utilising cloud-based software with decentralised global data storage, it must also navigate international privacy and data protection laws. A prime example is the General Data Protection Regulation (GDPR), a globally recognised and stringent data protection law applicable to both European-based companies and international entities providing goods, services, or monitoring activities of residents within Europe. 

Manufacturers of these vehicles are subjected to compliance with this comprehensive legal framework. Obligations on companies are levied by them being data fiduciaries; dual liability may also emanate since some data fiduciaries may also qualify as data processors. Special care must be taken when data is being transferred to third parties. 

Further, compliance with consumer safety laws is also an important consideration. In India, the Consumer Protection Act of 2019 safeguards the rights of consumers, holding manufacturers, sellers, and service providers responsible for any harm resulting from faulty or defective products. This extends the Act's coverage to include manufacturers and sellers of internet and technology-based products. When read with the Digital Personal Data Protection Act of 2023 (DPDP Act), the Consumer Protection Act of 2019 takes on additional significance. The DPDP Act, focusing on the security of an individual's digital personal data, introduces provisions such as mandatory consent, purpose limitation, data minimisation, obligatory security measures by organisations, data localisation, and enforcing accountability and compliance. These provisions apply to information generated by and for consumers, offering a comprehensive framework for protecting digital personal data.

Conclusion

The intersection of e-vehicles and data privacy necessitates a careful and comprehensive approach to ensure the coexistence of automotive innovation and user security. As electric vehicles record intricate data related to driving behaviour, location, and telematic services, companies manufacturing these vehicles must navigate a complex landscape of data privacy requirements. The potential risks associated with location tracking, smart features, and the extensive data collected during charging underscore the importance of transparent privacy policies, secure data storage practices, and stringent encryption protocols. Moreover, as companies expand globally, compliance with international privacy laws like the GDPR becomes imperative. Balancing the enhancement of vehicle performance and user experience with the safeguarding of privacy is paramount. Manufacturers, deemed as data fiduciaries, must exercise diligence, especially when transferring data to third parties. Additionally, adherence to consumer safety laws, such as the Consumer Protection Act of 2019, further emphasises the need for a holistic and vigilant approach to ensure the responsible use of data in the evolving landscape of e-vehicles.

References

• https://digitalcommons.law.scu.edu/cgi/viewcontent.cgi?article=1556&context=chtlj 
• https://cyberswitching.com/electric-car-charging-and-data-privacy/#:~:text=Smart%20charging%20systems%20provide%20convenience,in%20safeguarding%20EV%20user%20privacy

Introduction

Pagers were commonly utilized in the late 1990s and early 2000s, especially in fields that needed fast, reliable communication and swift alerts and information sharing. Pagers typically offer a broader coverage range, particularly in remote areas with limited cellular signals, which enhances their dependability. They are simple electronic devices with minimal features, making them easy to use and less prone to technical issues. The decline in their use has been caused by the rise of mobile phones and their extensive features, offering more advanced communication options like voice calls, text messages, and internet access. Despite this, pagers are still used in some specific industries.

A shocking incident occurred on 17th September 2014, where thousands of pager devices exploded within seconds across Lebanon in a synchronized attack, targeting the US-designated terror group Hezbollah. The explosions killed at least 9 and injured over 2,800 individuals in the country that has been caught up in the Israel-Palestine tensions in its backyard.

The Pager Bombs Incident

On Tuesday, 17th September 2024, hundreds of pagers carried by Hezbollah members in Lebanon exploded in an unprecedented attack, surpassing a series of covert assassinations and cyber-attacks in the region over recent years. The Iran-backed militant group claimed the wireless devices began to explode around 3:30 p.m., local time, in a targeted attack on Hezbollah operatives. The pagers that exploded were new and had been purchased by Hezbollah in recent months. Experts say the explosions underscore Hezbollah's vulnerability as its communication network was compromised to deadly effect. Several areas of the country were affected, particularly Beirut's southern suburbs, a populous area that is a known Hezbollah stronghold. At least 9 people were killed, including a child, and about 2,800 people were wounded, overwhelming Lebanese hospitals.

Second Wave of Attack

As per the most recent reports, the next day, following the pager bombing incident, a second wave of blasts hit Beirut and multiple parts of Lebanon. Certain wireless devices such as walkie-talkies, solar equipment, and car batteries exploded, resulting in at least 9 people killed and 300 injured, according to the Lebanese Health Ministry. The attack is said to have embarrassed Hezbollah, incapacitated many of its members, and raised fears about a greater escalation of hostilities between the Iran-backed Lebanese armed group and Israel.

A New Kind of Threat - ‘Cyber-Physical’ Attacks

The incident raises serious concerns about physical tampering with daily-use electronic devices and the possibility of triggering a new age of warfare. This highlights the serious physical threat posed, wherein even devices such as smartwatches, earbuds, and pacemakers could be vulnerable to physical tampering if an attacker gains physical access to them. We are potentially looking at a new age of ‘cyber-physical’ threats where the boundaries between the digital and the physical are blurring rapidly. It raises questions about unauthorised access and manipulation targeting the physical security of such electronic devices. There is a cause for concern regarding the global supply chain across sectors, if even seemingly-innocuous devices can be weaponised to such devastating effect. Such kinds of attacks are capable of causing significant disruption and casualties, as demonstrated by pager bombings in Lebanon, which resulted in numerous deaths and injuries. It also raises questions on the regulatory mechanism and oversights checks at every stage of the  electronic device lifecycle, from component manufacturing to the final assembly and shipment or supply. This is a grave issue because embedding explosives and doing malicious modifications by adversaries can turn such electronic devices into weapons.

CyberPeace Outlook

The pager bombing attack demonstrates a new era of threats in warfare tactics, revealing the advanced coordination and technical capabilities of adversaries where they have weaponised the daily use of electronic devices. They have targeted the hardware security of electronic devices, presenting a serious new threat to hardware security. The threat is grave, and has understandably raised widespread apprehension globally.  Such kind of gross weaponisation of daily-use devices, specially in the conflict context, also triggers concerns about the violation of International Humanitarian Law principles. It also raises serious questions on the liabilities of companies, suppliers and manufacturers of such devices, who are subject to regulatory checks and ensuring the authenticity of their products.

The incident highlights the need for a more robust regulatory landscape, with stricter supply chain regulations as we adjust to the realities of a possible new era of weaponisation and conflict expression. CyberPeace recommends the incorporation of stringent tracking and vetting processes in product supply chains, along with the strengthening of international cooperation mechanisms to ensure compliance with protocols regarding the responsible use of technology. These will go a long way towards establishing peace in the global cyberspace and restore trust and safety with regards to everyday technologies.

References:

1. https://indianexpress.com/article/what-is/what-is-a-pager-9573113/

2. https://timesofindia.indiatimes.com/world/middle-east/pager-attack-in-lebanon-why-was-hezbollah-using-outdated-pagers-in-2024/articleshow/113442551.cms

3. https://www.ndtv.com/world-news/explained-how-pagers-turned-bombs-and-why-israel-is-being-blamed-6592100

4. https://edition.cnn.com/2024/09/17/middleeast/lebanon-pager-attack-explosions-hezbollah-explainer-intl-latam/index.html

5. https://www.theguardian.com/world/2024/sep/18/hezbollah-pager-explosion-lebanon-israel-gold-apollo

6. https://apnews.com/article/lebanon-israel-exploding-pagers-hezbollah-syria-ce6af3c2e6de0a0dddfae48634278288

7. https://21stcenturychronicle.com/smartphones-solar-panels-walkie-talkies-intercoms-car-betteries-explode-in-lebanon/

https://www.coastreporter.net/the-mix/lebanon-is-rocked-by-a-second-wave-of-exploding-devices-as-israel-declares-a-new-phase-of-war-9536618

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