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Digital vulnerabilities like cyber-attacks and data breaches proliferate rapidly in the hyper-connected world that is created today. These vulnerabilities can compromise sensitive data like personal information, financial data, and intellectual property and can potentially threaten businesses of all sizes and in all sectors. Hence, it has become important to inform all stakeholders about any breach or attack to ensure they can be well-prepared for the consequences of such an incident.  

The non-reporting of reporting can result in heavy fines in many parts of the world. Data breaches caused by malicious acts are crimes and need proper investigation. Organisations may face significant penalties for failing to report the event. Failing to report data breach incidents can result in huge financial setbacks and legal complications. To understand why transparency is vital and understanding the regulatory framework that governs data breaches is the first step. 

The Current Indian Regulatory Framework on Data Breach Disclosure

A data breach essentially, is the unauthorised processing or accidental disclosure of personal data, which may occur through its acquisition, sharing, use, alteration, destruction, or loss of access. Such incidents can compromise the affected data’s confidentiality, integrity, or availability. In India, the Information Technology Act of 2000 and the Digital Personal Data Protection Act of 2023 are the primary legislation that tackles cybercrimes like data breaches. 

• Under the DPDP Act, neither materiality thresholds nor express timelines have been prescribed for the reporting requirement. Data Fiduciaries are required to report incidents of personal data breach, regardless of their sensitivity or impact on the Data Principal. 
• The IT (Indian Computer Emergency Response Team and Manner of Performing Functions and Duties) Rules, 2013, the IT (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011, along with the Cyber Security Directions, under section 70B(6) of the IT Act, 2000, relating to information security practices, procedure, prevention, response and reporting of cyber incidents for Safe & Trusted Internet prescribed in 2022 impose mandatory notification requirements on service providers, intermediaries, data centres and corporate entities, upon the occurrence of certain cybersecurity incidents. 
• These laws and regulations obligate companies to report any breach and any incident to regulators such as the CERT-In and the Data Protection Board.

The Consequences of Non-Disclosure

A non-disclosure of a data breach has a manifold of consequences. They are as follows:

• Legal and financial penalties are the immediate consequence of a data breach in India. The DPDP Act prescribes a fine of up to Rs 250 Crore from the affected parties, along with suits of a civil nature and regulatory scrutiny. Non-compliance can also attract action from CERT-In, leading to more reputational damage.
• In the long term, failure to disclose data breaches can erode customer trust as they are less likely to engage with a brand that is deemed unreliable. Investor confidence may potentially waver due to concerns about governance and security, leading to stock price drops or reduced funding opportunities. Brand reputation can be significantly tarnished, and companies may struggle with retaining and attracting customers and employees. This can affect long-term profitability and growth.
• Companies such as BigBasket and Jio in 2020 and Haldiram in 2022 have suffered from data breaches recently. Poor transparency and delay in disclosures led to significant reputational damage, legal scrutiny, and regulatory actions for the companies.

Measures for Improvement: Building Corporate Reputation via Transparency

Transparency is critical when disclosing data breaches. It enhances trust and loyalty for a company when the priority is data privacy for stakeholders. Ensuring transparency mitigates backlash. It demonstrates a company’s willingness to cooperate with authorities. A farsighted approach instils confidence in all stakeholders in showcasing a company's resilience and commitment to governance. These measures can be further improved upon by:

• Offering actionable steps for companies to establish robust data breach policies, including regular audits, prompt notifications, and clear communication strategies. 
• Highlighting the importance of cooperation with regulatory bodies and how to ensure compliance with the DPDP Act and other relevant laws. 
• Sharing best public communications practices post-breach to manage reputational and legal risks.

Conclusion

Maintaining transparency when a data breach happens is more than a legal obligation. It is a good strategy to retain a corporate reputation. Companies can mitigate the potential risks (legal, financial and reputational) by informing stakeholders and cooperating with regulatory bodies proactively. In an era where digital vulnerabilities are ever-present, clear communication and compliance with data protection laws such as the DPDP Act build trust, enhance corporate governance, and secure long-term business success. Proactive measures, including audits, breach policies, and effective public communication, are critical in reinforcing resilience and fostering stakeholder confidence in the face of cyber threats.

References

• https://www.meity.gov.in/writereaddata/files/Digital%20Personal%20Data%20Protection%20Act%202023.pdf 
• https://www.cert-in.org.in/PDF/CERT-In_Directions_70B_28.04.2022.pdf 
• https://chawdamrunal.medium.com/the-dark-side-of-covering-up-data-breaches-why-transparency-is-crucial-fe9ed10aac27 
• https://www.dlapiperdataprotection.com/index.html?t=breach-notification&c=IN

Incident Overview

Earlier this week, the Chinese media reported that several ‘Macau’ government websites were hacked, indicating a significant targeted cyberattack. The hacked website includes those of the office of the Secretary for Security, the public security police, the fire services department and the Security Forces Services Bureau. It was reported that the police have launched a criminal investigation to trace the source of the crime. Furthermore, officials believe the source of the intrusion was likely from overseas, and authorities have carried out an emergency response in conjunction with telecommunication operators to restore affected services on a priority basis. The densely populated Macau is a special administrative region on the south coast of China and the cyber attacks on the essential government website of China raise a serious concern. 

Response and Mitigation

Macau's authorities carried out an emergency response in collaboration with telecommunication operators to restore regular services as a distributed denial-of-service attack (DDoS) was reported to be carried out on certain government websites which resulted in the inactivity of those several websites. The country's security forces instructed Macau Telecom to investigate the incident and submit a report and improvement plan to prevent similar attacks in the future.

Context and Implications

The hack on the government websites of Macau is not a single incident; rather, it is a part of an increasing pattern of cyberattacks on the region's vital infrastructure. According to a recent report, the frequency of cybercrimes has tripled since 2020, targeting Macau's critical infrastructure, which is worrying. This pattern draws attention to the growing threats that public sector organisations and governments throughout the world confront.

Final Words 

In light of such sophisticated attacks targeting vital infrastructure or critical government operations, it is imperative that the country ensure powerful cybersecurity strategies and measures. Implementing robust cybersecurity measures, developing incident response planning, regular security checks, employee training on cyber hygiene, public awareness and capacity building and international collaboration to jointly develop and plan counteract strategies is a crucial step to build safeguards against such cyber threats.

The incident of a cyberattack on the government websites of Macau serves stark reminder of the evolving threats and cybersecurity challenges, it is a serious concern when critical government websites are compromised by malicious actors. It highlights the necessity for continuous vigilance and cybersecurity measures in place to counter such cyber attacks. A comprehensive approach to cybersecurity, the government can enhance their overall cybersecurity posture, establish resilience against such threats in future, and save the functionality of essential government websites. 

References:

1. https://macaudailytimes.com.mo/websites-of-office-of-the-secretary-for-security-targeted-in-a-cyber-attack.html
2. https://www.reuters.com/world/china/several-macau-government-websites-hacked-says-chinese-state-media-2024-07-11/
3. https://4imag.com/several-macau-government-websites-hacked-says-chinese-state-media/
4. https://www.aol.com/news/several-macau-government-websites-hacked-001435511.htmlhttps://therecord.media/macau-government-websites-hit-with-cyberattack
5. https://macaonews.org/news/city/macau-cyberattacks-cyber-security-attacks-macao/

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Introduction

As the sun rises on the Indian subcontinent, a nation teeters on the precipice of a democratic exercise of colossal magnitude. The Lok Sabha elections, a quadrennial event that mobilises the will of over a billion souls, is not just a testament to the robustness of India's democratic fabric but also a crucible where the veracity of information is put to the sternest of tests. In this context, the World Economic Forum's 'Global Risks Report 2024' emerges as a harbinger of a disconcerting trend: the spectre of misinformation and disinformation that threatens to distort the electoral landscape.

The report, a carefully crafted document that shares the insights of 1,490 experts from the interests of academia, government, business and civil society, paints a tableau of the global risks that loom large over the next decade. These risks, spawned by the churning cauldron of rapid technological change, economic uncertainty, a warming planet, and simmering conflict, are not just abstract threats but tangible realities that could shape the future of nations.

India’s Electoral Malice

India, as it strides towards the general elections scheduled in the spring of 2024, finds itself in the vortex of this hailstorm. The WEF survey positions India at the zenith of vulnerability to disinformation and misinformation, a dubious distinction that underscores the challenges facing the world's largest democracy. The report depicts misinformation and disinformation as the chimaeras of false information—whether inadvertent or deliberate—that are dispersed through the arteries of media networks, skewing public opinion towards a pervasive distrust in facts and authority. This encompasses a panoply of deceptive content: fabricated, false, manipulated and imposter.

The United States, the European Union, and the United Kingdom too, are ensnared in this web of varying degrees of misinformation. South Africa, another nation on the cusp of its own electoral journey, is ranked 22nd, a reflection of the global reach of this phenomenon. The findings, derived from a survey conducted over the autumnal weeks of September to October 2023, reveal a world grappling with the shadowy forces of untruth.

Global Scenario

The report prognosticates that as close to three billion individuals across diverse economies—Bangladesh, India, Indonesia, Mexico, Pakistan, the United Kingdom, and the United States—prepare to exercise their electoral rights, the rampant use of misinformation and disinformation, and the tools that propagate them, could erode the legitimacy of the governments they elect. The repercussions could be dire, ranging from violent protests and hate crimes to civil confrontation and terrorism.

Beyond the electoral arena, the fabric of reality itself is at risk of becoming increasingly polarised, seeping into the public discourse on issues as varied as public health and social justice. As the bedrock of truth is undermined, the spectre of domestic propaganda and censorship looms large, potentially empowering governments to wield control over information based on their own interpretation of 'truth.'

The report further warns that disinformation will become increasingly personalised and targeted, honing in on specific groups such as minority communities and disseminating through more opaque messaging platforms like WhatsApp or WeChat. This tailored approach to deception signifies a new frontier in the battle against misinformation.

In a world where societal polarisation and economic downturn are seen as central risks in an interconnected 'risks network,' misinformation and disinformation have ascended rapidly to the top of the threat hierarchy. The report's respondents—two-thirds of them—cite extreme weather, AI-generated misinformation and disinformation, and societal and/or political polarisation as the most pressing global risks, followed closely by the 'cost-of-living crisis,' 'cyberattacks,' and 'economic downturn.'

Current Situation

In this unprecedented year for elections, the spectre of false information looms as one of the major threats to the global populace, according to the experts surveyed for the WEF's 2024 Global Risk Report. The report offers a nuanced analysis of the degrees to which misinformation and disinformation are perceived as problems for a selection of countries over the next two years, based on a ranking of 34 economic, environmental, geopolitical, societal, and technological risks.

India, the land of ancient wisdom and modern innovation, stands at the crossroads where the risk of disinformation and misinformation is ranked highest. Out of all the risks, these twin scourges were most frequently selected as the number one risk for the country by the experts, eclipsing infectious diseases, illicit economic activity, inequality, and labor shortages. The South Asian nation's next general election, set to unfurl between April and May 2024, will be a litmus test for its 1.4 billion people.

The spectre of fake news is not a novel adversary for India. The 2019 election was rife with misinformation, with reports of political parties weaponising platforms like WhatsApp and Facebook to spread incendiary messages, stoking fears that online vitriol could spill over into real-world violence. The COVID-19 pandemic further exacerbated the issue, with misinformation once again proliferating through WhatsApp.

Other countries facing a high risk of the impacts of misinformation and disinformation include El Salvador, Saudi Arabia, Pakistan, Romania, Ireland, Czechia, the United States, Sierra Leone, France, and Finland, all of which consider the threat to be one of the top six most dangerous risks out of 34 in the coming two years. In the United Kingdom, misinformation/disinformation is ranked 11th among perceived threats.

The WEF analysts conclude that the presence of misinformation and disinformation in these electoral processes could seriously destabilise the real and perceived legitimacy of newly elected governments, risking political unrest, violence, and terrorism, and a longer-term erosion of democratic processes.

The 'Global Risks Report 2024' of the World Economic Forum ranks India first in facing the highest risk of misinformation and disinformation in the world at a time when it faces general elections this year. The report, released in early January with the 19th edition of its Global Risks Report and Global Risk Perception Survey, claims to reveal the varying degrees to which misinformation and disinformation are rated as problems for a selection of analyzed countries in the next two years, based on a ranking of 34 economic, environmental, geopolitical, societal, and technological risks.

Some governments and platforms aiming to protect free speech and civil liberties may fail to act effectively to curb falsified information and harmful content, making the definition of 'truth' increasingly contentious across societies. State and non-state actors alike may leverage false information to widen fractures in societal views, erode public confidence in political institutions, and threaten national cohesion and coherence.

Trust in specific leaders will confer trust in information, and the authority of these actors—from conspiracy theorists, including politicians, and extremist groups to influencers and business leaders—could be amplified as they become arbiters of truth.

False information could not only be used as a source of societal disruption but also of control by domestic actors in pursuit of political agendas. The erosion of political checks and balances and the growth in tools that spread and control information could amplify the efficacy of domestic disinformation over the next two years.

Global internet freedom is already in decline, and access to more comprehensive sets of information has dropped in numerous countries. The implication: Falls in press freedoms in recent years and a related lack of strong investigative media are significant vulnerabilities set to grow.

Advisory

Here are specific best practices for citizens to help prevent the spread of misinformation during electoral processes:

• Verify Information:Double-check the accuracy of information before sharing it. Use reliable sources and fact-checking websites to verify claims.

• Cross-Check Multiple Sources:Consult multiple reputable news sources to ensure that the information is consistent across different platforms.

• Be Wary of Social Media:Social media platforms are susceptible to misinformation. Be cautious about sharing or believing information solely based on social media posts.

• Check Dates and Context:Ensure that information is current and consider the context in which it is presented. Misinformation often thrives when details are taken out of context.

• Promote Media Literacy:Educate yourself and others on media literacy to discern reliable sources from unreliable ones. Be skeptical of sensational headlines and clickbait.

• Report False Information:Report instances of misinformation to the platform hosting the content and encourage others to do the same. Utilise fact-checking organisations or tools to report and debunk false information.

• Critical Thinking:Foster critical thinking skills among your community members. Encourage them to question information and think critically before accepting or sharing it.

• Share Official Information:Share official statements and information from reputable sources, such as government election commissions, to ensure accuracy.

• Avoid Echo Chambers:Engage with diverse sources of information to avoid being in an 'echo chamber' where misinformation can thrive.

• Be Responsible in Sharing:Before sharing information, consider the potential impact it may have. Refrain from sharing unverified or sensational content that can contribute to misinformation.

• Promote Open Dialogue:Open discussions should be promoted amongst their community about the significance of factual information and the dangers of misinformation. 

• Stay Calm and Informed:During critical periods, such as election days, stay calm and rely on official sources for updates. Avoid spreading unverified information that can contribute to panic or confusion.

• Support Media Literacy Programs:Media Literacy Programs in schools should be promoted to provide individuals with essential skills to sail through the information sea properly.

Conclusion

Preventing misinformation requires a collective effort from individuals, communities, and platforms. By adopting these best practices, citizens can play a vital role in reducing the impact of misinformation during electoral processes.

References:

• https://thewire.in/media/survey-finds-false-information-risk-highest-in-india 
• https://thesouthfirst.com/pti/india-faces-highest-risk-of-disinformation-in-general-elections-world-economic-forum/

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