The Murky Illusion: Online Gambling and Cyber-Security Issues
Introduction
As the world is being "Digitally Interlaced", cyber security has become a continuous wrangle. The “Gambling industry” is considered an incredibly lucrative mark for cybercriminals, principally due to the enormous quantities of cash on hand and the sensitive details it processes day to day. Cybercriminals may use susceptibilities in gambling scaffolds to achieve financial scams or launder unlawful funds. An analysis by Security Scorecard discovered that the online gambling industry was ranked third in the possibility of encountering a cyber attack, following the energy and financial services sectors. Similarly, Online gambling is a bending matter that demands meticulous contemplation by policymakers and nationals. The incredible rise of online gambling has led to a terse acclivity in unlawful activities such as online scams, fraud, etc. Also, online sports gambling has become a thriving endeavour in contemporary years as millions of people are putting stakes and gambles on their electronic devices.
The Challenges
Online gambling has thus become a widespread frolicking for numerous youngsters, with the industry tossed to be worth billions of dollars in the forthcoming decades. The prominent cyber security challenges in the gambling industry are money laundering, financial laundering, ransomware, personal information theft, data breaches, distributed Denial of Service (DDoS), system disruptions and Insider perils and employee malfeasance. Challenges of online gambling also include being properly not regulated and a lack of social interaction with near and dear ones. The spread of Internet gambling has presented many problems affecting consumer behaviour online, motivations to gamble, problem gambling, security of websites, and the righteousness and virtue of the games. The rise of online gambling among young people due to the lack of clear regulations has likewise produced an abundant backdrop for financial ruination.
Web games and betting are among the fastest-evolving areas of the Internet. Over the past several years, there has been an international flare-up in online gambling, permitting customers to play from the convenience of home, work, and public locations. Numerous offshore betting websites and apps usually permit parties to win in the start with sound returns, whereas after the user gets addicted and invests considerable sums, they either keep failing or have the website refuse to cash out the winnings. Also, the information demonstrates that online games have been employed to commit wrongdoings (Child sexual exploitive material, religious conversion, cyberbullying, fraud, betting in virtual online casinos, etc.)
India's laws and regulations surrounding online gambling are complex and constantly evolving. While the legal framework is not entirely clear, a few state in India have their own set of rules.
Recently In April 2023, the Union Ministry of Electronics and Information Technology (“MeitY”), by virtue of the rule-making powers available to the central government under the Information Technology Act, 2000 (“IT Act 2000”), implemented a new central legal framework for online gaming through amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (“IT Rules 2021”). These amendments (“Online Gaming Rules”) propose a light-touch, co-regulatory regime whereby MeitY-recognised, independent self-regulatory bodies (“SRB”) will verify whether an “online real-money game” is to be made available to the general public or not – in accordance with the baseline criteria prescribed by the Online Gaming Rules.
The Online Gaming Rules attempt to regulate online gaming platforms by treating them as an “online gaming intermediary” (“OGI”) and prescribing intermediary due diligence obligations for them under the IT Rules 2021. An OGI has been defined in the Online Gaming Rules as “any intermediary that enables the users of its computer resource to access one or more online games”. Under the Online Gaming Rules, an online game can be a “permissible online game” if (i) it is not an online real-money game, or (ii) it is an online real-money game but is “verified” by an SRB in accordance with the baseline criteria prescribed by the Online Gaming Rules and any additional criteria prescribed by the SRB itself.
Global Perspective
The global gaming industry worth over US$227 billion in 2022 is further projected to grow to US$312 billion by 2027. Several countries have set regulatory frameworks about online gaming, though these are skewed, concentrating mainly on gambling and circumventing numerous of the more typical cyber threats. The US spends about $60 billion annually on online gambling and sports betting. In Europe, gambling is an even larger moneymaker. Also, numerous countries in Europe, like the UK, have legalised gambling. Nevertheless, it is prohibited for a US based company to operate an online gambling site. Yet, sports betting online is permitted in some states.
Today, though the gaming market has been overpowered by China and the US, future growth in the sector is anticipated to come from emerging economies like India with increasing populations. The permitted status of online gambling in India is nonetheless imprecise, vamoosing space for exploitation by cyber criminals and disarray for players involved. One of the climactic points that ought to be addressed is the sudden upsurge of online games, which increases gambling. Skill-based games such as poker, rummy etc., have additionally been developed to circumvent the legal definition of gambling in India. The recent instances of the online gaming industry not being properly regulated have also come to light in India. For instance, the Enforcement Directorate (ED) is still investigating the vast Mahadev Online Betting scandal, exposing an unknown money laundering method using Unified Payment Interface (UPI) IDs. Also, the Cyber Cell in Agra has taken proactive action against copyright violations, illegal online gambling and betting activities, shutting down 27 Illegal cricket betting sites in major operations, safeguarding several lakhs of Indians with thousands of crores from being transferred to overseas shores principally China.
Consequently, though India has announced new regulations on online gaming, its contemporary policy framework cannot contend with the problems endangering this sector. The Public Gambling Act of 1867 makes it unlawful to use a public gambling house or to be seen in one. Nevertheless, the act does not explicitly cite online gambling, leading to further interpretation. The Ministry of Home Affairs (MHA) has released a further awareness campaign for offshore illegal gambling apps, notifying users to be mindful of foreign apps as they may be fraudulent and might induce monetary damage to the user. Also, state laws control gambling in India with each state having its own directive on the subject. Yet, the Supreme Court of India has maintained that skilled games are not gambling and are thus legal. Furthermore, the Information Technology (IT) Act, of 2000 does not precisely handle online gambling or games that enable gambling.
Today, developers have strived for new ways to monetise the growing popularity of online gaming, which oversaw the creation of in-game currencies that can be bought using actual money, usually through credit cards. Several nations have prohibited the usage of in-game currency and loot boxes, considering them a kind of online gambling. The in-game currency has thus caused much disagreement about becoming a state of hunting monetisation by developers, especially targeting minor or newbie players. The gambling industry, therefore, faces unique cybersecurity challenges that require a comprehensive and proactive approach to cybersecurity.
Conclusion
Presently, there are approximately 3.09 billion active video game players worldwide, and the number is expected to reach 3.32 billion by 2024 as of 2023. In the contemporary digital era, information is priceless, and encryption acts as a necessary means to safeguard it. Thus, Regulators are working to maintain the swiftness of shift in the industry, as the dearth of transparency in the law has made it challenging to implement regulations. There is also less awareness about cyber security in India due to the following grounds such as the lack of ethical hackers in the country, companies in India lacking focus on cyber security and hiring a team of ethical hackers and cyber security experts. Furthermore, there has been a lack of knowledge among the citizens as well.
It is essential to realise the conceivable social and economic consequences and take measures to handle the online gambling industry. The industry has thus been undersized in the mode of research following online crime and Internet gambling, even though it is an acute emphasis. There is also a pressing necessity to rebuild these regulations to tackle the more unbridled cyber security hazards swarming the gaming industry. Similarly, there is an urgent need for governments and policymakers around the world to start paying more attention to the gaming industry as cyber security threats continue to rise. There should be a further need to strengthen the regulatory framework, establish Self Regulatory Organizations (SROs), create ethical gaming designs and increase awareness among gamers. The Government of India should consider devising its own rating system to rate games so that players under 18 cannot access them.
Eventually, cyber security is a shared commitment, and everyone in the online gambling ecosystem must function jointly to provide a secure and safe setting for all.
References:
- https://truefort.com/gambling-industry-cybersecurity/
- https://www.orfonline.org/research/cybersecurity-threats-in-online-gaming-learnings-for-india
- https://www.hackread.com/chinese-scammers-cloned-websites-gambling-network/
- https://www.civilsdaily.com/news/cybersecurity-threats-from-online-gaming/
- https://www.linkedin.com/pulse/legal-considerations-online-gambling-india-sudden-increase-mathur/
- https://www.jsheld.com/insights/articles/the-importance-of-cybersecurity-in-the-online-sports-betting-industry
- https://www.the420.in/agra-cyber-cell-takes-down-27-illegal-betting-sites/
- https://g2g.news/gaming/ministry-of-home-affairs-releases-new-awareness-campaign-for-online-gaming-in-india/
- https://smestreet.in/technology/kaspersky-warns-of-increased-phishing-scams-and-data-breaches-in-apac-for-2024-2381601
- https://economictimes.indiatimes.com/tech/newsletters/morning-dispatch/govt-bans-mahadev-other-illegal-betting-apps-cyber-attacks-against-india-spike/articleshow/104996017.cms?from=mdr
- https://cipher.com/cybersecurity-for-gambling/
- https://www.mangalorean.com/tightening-the-reins-indian-government-blocks-over-550-illegal-betting-and-gambling-apps/
- https://cybersecurityasean.com/news-press-releases/kaspersky-predicts-rise-cyber-threats-across-apac-2024
- https://www.cnbctv18.com/technology/mahadev-betting-app-scam-ed-money-laundering-upi-celebrities-under-scanner-17815661.htm
- https://iclg.com/practice-areas/gambling-laws-and-regulations/india
Related Blogs
Executive Summary:
Recently, there has been a massive amount of fake news about India’s standing in the United Security Council (UNSC), including a veto. This report, compiled scrupulously by the CyberPeace Research Wing, delves into the provenance and credibility of the information, and it is debunked. No information from the UN or any relevant bodies has been released with regard to India’s permanent UNSC membership although India has swiftly made remarkable progress to achieve this strategic goal.
Claims:
Viral posts claim that India has become the first-ever unanimously voted permanent and veto-holding member of the United Nations Security Council (UNSC). Those posts also claim that this was achieved through overwhelming international support, granting India the same standing as the current permanent members.
Factcheck:
The CyberPeace Research Team did a thorough keyword search on the official UNSC official website and its associated social media profiles; there are presently no official announcements declaring India's entry into permanent status in the UNSC. India remains a non-permanent member, with the five permanent actors- China, France, Russia, United Kingdom, and USA- still holding veto power. Furthermore, India, along with Brazil, Germany, and Japan (the G4 nations), proposes reform of the UNSC; yet no formal resolutions have come to the surface to alter the status quo of permanent membership. We then used tools such as Google Fact Check Explorer to uncover the truth behind these viral claims. We found several debunked articles posted by other fact-checking organizations.
The viral claims also lack credible sources or authenticated references from international institutions, further discrediting the claims. Hence, the claims made by several users on social media about India becoming the first-ever unanimously voted permanent and veto-holding member of the UNSC are misleading and fake.
Conclusion:
The viral claim that India has become a permanent member of the UNSC with veto power is entirely false. India, along with the non-permanent members, protests the need for a restructuring of the UN Security Council. However, there have been no official or formal declarations or commitments for alterations in the composition of the permanent members and their powers to date. Social media users are advised to rely on verified sources for information and refrain from spreading unsubstantiated claims that contribute to misinformation.
- Claim: India’s Permanent Membership in UNSC.
- Claimed On: YouTube, LinkedIn, Facebook, X (Formerly Known As Twitter)
- Fact Check: Fake & Misleading.
Introduction
Google.org is committed to stepping ahead to enhance Internet safety and responsible online behaviour. ‘Google for INDIA 2023’, an innovative conclave, took place on 19th October 2023. Google.org has embarked on its vision for a safer Internet and combating misinformation, financial frauds and other threats that come from bad actors. Alphabet Big Tech is committed to leading this charter and engaging with all stakeholders, including government agencies. Google.org has partnered with CyberPeace Foundation to foster a safer online environment and empower users on informed decisions on the Internet. CyberPeace will run a nationwide awareness and capacity-building Initiative equipping more than 40 Million Indian netizens with fact-checking techniques, tools, SoPs, and guidance for responsible and safe online behaviour. The campaign will be deployed in 15 Indian regional languages as a comprehensive learning outcome for the whole nation. Together, Google.org and CyberPeace Foundation aim to make the Internet safer for everyone and work in a direction to ensure that progress for everyone is built on a strong foundation of trusted information available on the Internet and pursuing the true spirit of “Technology for Good”.
Google.org and CyberPeace together for enhanced online safety
A new $4 million grant to CyberPeace Foundation will support a nationwide awareness-building program and comprehensive multilingual digital resource hub with content available in up to 15 Indian languages to empower nearly 40 million underserved people across the country in building resilience against misinformation and practice responsible online behaviour. Together, Google.org and CyberPeace are on their way to creating a strong pathway of trusted Internet and a safer digital environment. The said campaign will be undertaken for a duration of 3 years, and the following key components will run at the core of the same:
- CyberPeace Corps Volunteers: This will be a pan India volunteer engagement initiative to create a community of 9 million CyberPeace Ambassadors/First Responders/Volunteers to fight misinformation and promote responsible online behaviour going far into the rural, marginalised and most vulnerable strata of society.
- Digital Resource Hub: In pursuance of the campaign, CyberPeace is developing a cutting-edge platform offering a wealth of resources on media literacy, responsible content creation, and cyber hygiene translated into 15 Indian regional languages for a widespread impact on the ground.
- Public Sensitisation: CyberPeace will be conducting an organic series of online and offline events focusing on empowering netizens to discern fact from fiction. These sensitisation drives will be taken on by start master trainers from different regions of India to ensure all states and UTs are impacted.
- CyberPeace Quick Reaction Team: A specialised team of tech enthusiasts that will work closely with platforms to rapidly address new-age cyber threats and misinformation campaigns in real-time and establish best practices and SoPs for the diverse elements in the industries.
- Engaging Multimedia Content: With CyberPeace’s immense expertise in E-Course and digital content, the campaign will produce a range of multilingual multimedia resources, including informative videos, posters, games, contests, infographics, and more.
- Fact-check unit: Fact-check units will play a crucial role in monitoring, identifying, and doing fact analysis of the suspected information and overall busting the growing incidents of misinformation. Fake news or misinformation has negative consequences on society at large. The fact-check units play a significant role in controlling the widespread of misinformation.
Fight Against Misinformation
Misinformation is rampant all across the world and requires attention. With the increasing penetration of social media and the internet, this remains a global issue. Google.org has taken up the initiative to address this issue in India and, in collaboration with CyberPeace Foundation taken a proactive step to multiple avenues for mass-scale awareness and upskilling campaigns have been piloted to make an impact on the ground with the vision of upskilling over 40 Million people in the country and building resilience against misinformation and practicing responsible online behavior.
Maj Vineet Kumar, Founder of CyberPeace, said,
"In an era in which digital is deeply intertwined with our lives, knowing how to discern, act on, and share the credible from the wealth of information available online is critical to our well-being, and of our families and communities. Through this initiative, we’re committing to help Internet users across India become informed, empowered and responsible netizens leading through conversations and actions. Whether it’s in fact-checking information before sharing it, or refraining from sharing unverified news, we all play an important role in building a web that is a safe and inclusive space for everyone, and we are extremely grateful to Google.org for propelling us forward in this mission with their grant support.”
Annie Lewin, Senior Director of Global Advocacy and Head of Asia Pacific, Google.org said:
“We have a longstanding commitment to supporting changemakers using technology to solve humanity's biggest challenges. And, the innovation and zeal of Indian nonprofit organisations has inspired us to deepen our commitment in India. With the new grant to CyberPeace Foundation, we are proud to support solutions that speak directly to Google’s DNA, helping first-time internet users chart their path in a digital world with confidence. Such solutions give us pride and hope that each step, built on a strong foundation of trusted information, will translate into progress for all.”
Conclusion
Google.org has partnered with government agencies and other Indian organisations with the vision of future-proof India for digital public infrastructure and staying a step ahead for Internet safety, keeping the citizens safe online. Google.org is taking its largest step yet towards online safety in India. There is widespread misinformative content and information in the digital media space or on the internet. This proactive initiative of Google.org in collaboration with CyberPeace is a commendable step to prevent the spread of misinformation and empower users to act responsibly while sharing any information and making informed decisions while using the Internet, hence creating a safe digital environment for everyone.
References:
- https://www.youtube.com/live/-b4lTVjOsXY?feature=shared
- https://blog.google/intl/en-in/products/google-for-india-2023-product-announcements/
- https://blog.google/intl/en-in/partnering-indias-success-in-a-new-digital-paradigm/
- https://telecom.economictimes.indiatimes.com/news/internet/google-to-debut-credit-in-india-announces-a-slew-of-ai-powered-launches/104547623
- https://theprint.in/economy/google-for-india-2023-tech-giant-says-it-removed-2-million-violative-videos-in-q2-2023/1810201/
Executive Summary:
In recent times an image showing the President of AIMIM, Asaduddin Owaisi holding a portrait of Hindu deity Lord Rama, has gone viral on different social media platforms. After conducting a reverse image search, CyberPeace Research Team then found that the picture was fake. The screenshot of the Facebook post made by Asaduddin Owaisi in 2018 reveals him holding Ambedkar’s picture. But the photo which has been morphed shows Asaduddin Owaisi holding a picture of Lord Rama with a distorted message gives totally different connotations in the political realm because in the 2024 Lok Sabha elections, Asaduddin Owaisi is a candidate from Hyderabad. This means there is a need to ensure that before sharing any information one must check it is original in order to eliminate fake news.
Claims:
AIMIM Party leader Asaduddin Owaisi standing with the painting of Hindu god Rama and the caption that reads his interest towards Hindu religion.
Fact Check:
In order to investigate the posts, we ran a reverse search of the image. We identified a photo that was shared on the official Facebook wall of the AIMIM President Asaduddin Owaisi on 7th April 2018.
Comparing the two photos we found that the painting Asaduddin Owaisi is holding is of B.R Ambedkar whereas the viral image is of Lord Rama, and the original photo was posted in the year 2018.
Hence, it was concluded that the viral image was digitally modified to spread false propaganda.
Conclusion:
The photograph of AIMIM President Asaduddin Owaisi holding up one painting of Lord Rama is fake as it has been morphed. The photo that Asaduddin Owaisi uploaded on a Facebook page on 7 Apr 2018 depicted him holding a picture of Bhimrao Ramji Ambedkar. This photograph was digitally altered and the false captions were written to give an altogether different message of Asaduddin Owaisi. It has even highlighted the necessity of fighting fake news that has spread widely through social media platforms especially during the political realm.
- Claim: AIMIM President Asaduddin Owaisi was holding a painting of the Hindu god Lord Rama in his hand.
- Claimed on: X (Formerly known as Twitter)
- Fact Check: Fake & Misleading
