TRAI issues guidelines to Access Service Providers to prevent misuse of messaging services

Introduction

Deepfake technology, which combines the words "deep learning" and "fake," uses highly developed artificial intelligence—specifically, generative adversarial networks (GANs)—to produce computer-generated content that is remarkably lifelike, including audio and video recordings. Because it can provide credible false information, there are concerns about its misuse, including identity theft and the transmission of fake information. Cybercriminals leverage AI tools and technologies for malicious activities or for committing various cyber frauds. By such misuse of advanced technologies such as AI, deepfake, and voice clones. Such new cyber threats have emerged. 

India Topmost destination for deepfake attacks

According to Sumsub’s identity fraud report 2023, a well-known digital identity verification company with headquarters in the UK. India, Bangladesh, and Pakistan have become an important participants in the Asia-Pacific identity fraud scene with India’s fraud rate growing exponentially by 2.99% from 2022 to 2023. They are among the top ten nations most impacted by the use of deepfake technology. Deepfake technology is being used in a significant number of cybercrimes, according to the newly released Sumsub Identity Fraud Report for 2023, and this trend is expected to continue in the upcoming year. This highlights the need for increased cybersecurity awareness and safeguards as identity fraud poses an increasing concern in the area. 

How Deeepfake Works 

Deepfakes are a fascinating and worrisome phenomenon that have emerged in the modern digital landscape. These realistic-looking but wholly artificial videos have become quite popular in the last few months. Such realistic-looking, but wholly artificial, movies have been ingrained in the very fabric of our digital civilisation as we navigate its vast landscape. The consequences are enormous and the attraction is irresistible.  

Deep Learning Algorithms

Deepfakes examine large datasets, frequently pictures or videos of a target person, using deep learning techniques, especially Generative Adversarial Networks. By mimicking and learning from gestures, speech patterns, and facial expressions, these algorithms can extract valuable information from the data. By using sophisticated approaches, generative models create material that mixes seamlessly with the target context. Misuse of this technology, including the dissemination of false information, is a worry. Sophisticated detection techniques are becoming more and more necessary to separate real content from modified content as deepfake capabilities improve.

Generative Adversarial Networks

Deepfake technology is based on GANs, which use a dual-network design. Made up of a discriminator and a generator, they participate in an ongoing cycle of competition. The discriminator assesses how authentic the generated information is, whereas the generator aims to create fake material, such as realistic voice patterns or facial expressions. The process of creating and evaluating continuously leads to a persistent improvement in Deepfake's effectiveness over time. The whole deepfake production process gets better over time as the discriminator adjusts to become more perceptive and the generator adapts to produce more and more convincing content. 

 Effect on Community

The extensive use of Deepfake technology has serious ramifications for several industries. As technology develops, immediate action is required to appropriately manage its effects. And promoting ethical use of technologies. This includes strict laws and technological safeguards. Deepfakes are computer trickery that mimics prominent politicians' statements or videos. Thus, it's a serious issue since it has the potential to spread instability and make it difficult for the public to understand the true nature of politics. Deepfake technology has the potential to generate totally new characters or bring stars back to life for posthumous roles in the entertainment industry. It gets harder and harder to tell fake content from authentic content, which makes it simpler for hackers to trick people and businesses.

Ongoing Deepfake Assaults In India

Deepfake videos continue to target popular celebrities, Priyanka Chopra is the most recent victim of this unsettling trend. Priyanka's deepfake adopts a different strategy than other examples including actresses like Rashmika Mandanna, Katrina Kaif, Kajol, and Alia Bhatt. Rather than editing her face in contentious situations, the misleading film keeps her look the same but modifies her voice and replaces real interview quotes with made-up commercial phrases. The deceptive video shows Priyanka promoting a product and talking about her yearly salary, highlighting the worrying development of deepfake technology and its possible effects on prominent personalities.

Actions Considered by Authorities

A PIL was filed requesting the Delhi High Court that access to websites that produce deepfakes be blocked. The petitioner's attorney argued in court that the government should at the very least establish some guidelines to hold individuals accountable for their misuse of deepfake and AI technology. He also proposed that websites should be asked to identify information produced through AI as such and that they should be prevented from producing illegally. A division bench highlighted how complicated the problem is and suggested the government (Centre) to arrive at a balanced solution without infringing the right to freedom of speech and expression (internet).  

Information Technology Minister Ashwini Vaishnaw stated that new laws and guidelines would be implemented by the government to curb the dissemination of deepfake content. He presided over a meeting involving social media companies to talk about the problem of deepfakes. "We will begin drafting regulation immediately, and soon, we are going to have a fresh set of regulations for deepfakes. this might come in the way of amending the current framework or ushering in new rules, or a new law," he stated.

Prevention and Detection Techniques

To effectively combat the growing threat posed by the misuse of deepfake technology, people and institutions should place a high priority on developing critical thinking abilities, carefully examining visual and auditory cues for discrepancies, making use of tools like reverse image searches, keeping up with the latest developments in deepfake trends, and rigorously fact-check reputable media sources. Important actions to improve resistance against deepfake threats include putting in place strong security policies, integrating cutting-edge deepfake detection technologies, supporting the development of ethical AI, and encouraging candid communication and cooperation. We can all work together to effectively and mindfully manage the problems presented by deepfake technology by combining these tactics and adjusting the constantly changing terrain.

Conclusion

Advanced artificial intelligence-powered deepfake technology produces extraordinarily lifelike computer-generated information, raising both creative and moral questions. Misuse of tech or deepfake presents major difficulties such as identity theft and the propagation of misleading information, as demonstrated by examples in India, such as the latest deepfake video involving Priyanka Chopra. It is important to develop critical thinking abilities, use detection strategies including analyzing audio quality and facial expressions, and keep up with current trends in order to counter this danger. A thorough strategy that incorporates fact-checking, preventative tactics, and awareness-raising is necessary to protect against the negative effects of deepfake technology. Important actions to improve resistance against deepfake threats include putting in place strong security policies, integrating cutting-edge deepfake detection technologies, supporting the development of ethical AI, and encouraging candid communication and cooperation. We can all work together to effectively and mindfully manage the problems presented by deepfake technology by combining these tactics and making adjustments to the constantly changing terrain. Creating a true cyber-safe environment for netizens. 

References:

• https://yourstory.com/2023/11/unveiling-deepfake-technology-impact
• https://www.indiatoday.in/movies/celebrities/story/deepfake-alert-priyanka-chopra-falls-prey-after-rashmika-mandanna-katrina-kaif-and-alia-bhatt-2472293-2023-12-05
• https://www.csoonline.com/article/1251094/deepfakes-emerge-as-a-top-security-threat-ahead-of-the-2024-us-election.html
• https://timesofindia.indiatimes.com/city/delhi/hc-unwilling-to-step-in-to-curb-deepfakes-delhi-high-court/articleshow/105739942.cms
• https://www.indiatoday.in/india/story/india-among-top-targets-of-deepfake-identity-fraud-2472241-2023-12-05
• https://sumsub.com/fraud-report-2023/

Introduction

The Chairman of Vardhman Group, Mr SP Oswal, an India-based textile manufacturer, fell victim to a cyber fraud scheme that cost him ₹7 crore. The scam unfolded on August 28 and 29, conning Mr Oswal into transferring Rs 7 crore into multiple bank accounts. As per the recent reports, the Police have managed to freeze these accounts and recover over Rs 5 crore as of now. The fraudsters convinced Mr SP Oswal that he was a suspect in a money laundering investigation and held on a “Digital Arrest”. These are sophisticated cyber frauds where cyber-criminals impersonate law enforcement officials or other authorities and target innocent individuals with manipulative tactics. The scam targets are often contacted out of the blue, on Instant messaging apps like WhatsApp and informed that their bank accounts, digital identities, or other online assets have been compromised. Criminals play into the victims' fear by threatening them with imminent arrest, legal consequences, or public humiliation if they don't cooperate with a series of urgent demands.

Posing as Officials, Fraudsters Orchestrate ₹7 Crore Scam

The investigation revealed that the fraudsters posed as members of the Central Bureau of Investigation (CBI). They had contacted Mr Oswal and claimed that his Aadhaar had been misused in a case involving fake passports and financial fraud. The imposter conducted a video call in a police uniform using a background with the CBI logo. The fraud escalated further, Mr Oswal got a fake "arrest warrant" on  WhatsApp allegedly authorised by the Supreme Court. Fraudsters convinced Mr Oswal to transfer ₹7 crores to facilitate bail proceedings, claiming he was under "digital arrest". The meticulously planned scam involved fake documents, a virtual courtroom, and relentless intimidation tactics leaving Mr Oswal effectively under "digital arrest" for two days. While the police have successfully recovered over Rs 5 crore so far, this case highlights the alarming threat of digital impersonation of law enforcement authorities.

Legal Outlook on the Validity of Digital Arrests

In India, the main laws governing cyber crimes are the Information Technology Act, of 2000 and the rules made under therein, and the newly enacted Bhartiya Nyaya Sanhita, 2023. Recently enacted new criminal laws do not provide for any provision for law enforcement agencies conducting a digital arrest.  The law only provides for service of the summons and the proceedings in an electronic mode. Hence, there are no provisions for conducting 'digital arrests' as per the laws of the country. 

Further, It should be noted that the Indian Cyber Crime Coordination Centre (I4C), under the Ministry of Home Affairs, coordinates the activities related to combating cybercrime in the country. MHA works closely with other ministries to counter these frauds. The I4C also provides technical support to the police authorities of states/UTs for the identification and investigation of these cases. 

Best Practices to Avoid Digital Arrest Scams 

• To protect yourself from scams, it is crucial to verify the identity of individuals claiming to be law enforcement or government officials and use official contact channels to confirm their credentials. 
• Be cautious of pressure tactics used by fraudsters, especially demands for quick payment over unverified communication platforms like WhatsApp. 
• Cross-check official documents with legal advisors or relevant authorities. 
• Never share sensitive personal information, such as your Aadhaar number, over phone calls, emails, or messages without verifying the request's authenticity. 
• Avoid untraceable payments, such as cryptocurrency or prepaid cards, without validating the transaction's legitimacy, especially under duress. 
• Stay informed on scam techniques, particularly those involving impersonation and digital threats. 
• Enable Two-Factor Authentication (2FA) for sensitive online accounts to prevent misuse. 
• Consult advice from legal professionals if you receive threatening communication involving digital arrest or legal actions and do not take any action on the asks of persons posing as legitimate authorities. 
• In case of any cybercrime, you can file a complaint at cybercrime.gov.in or helpline number 1930. You can also seek assistance from the CyberPeace helpline at +91 9570000066.

Conclusion

The digital arrest of Vardhman Group's CEO underscores the increasing sophistication of cyber fraud schemes, which exploit fear and urgency, leading to severe financial and reputational harm. No one is immune from cybercrime, vigilance is essential at all leadership levels. While laws like the IT Act and initiatives taken by the I4C help combat cybercrime, rapidly evolving threats demand proactive safety measures. Beyond the possibility of financial loss, incidents like this jeopardise brand reputation, investor confidence, and operational stability. Be cautious of such threats and exercise due care and caution while navigating the digital landscape. Be aware of such kinds of scams and the manipulative tactics used by fraudsters to avoid them. By staying vigilant and aware we can avoid the growing scam of digital arrests. 

References

• https://www.business-standard.com/companies/news/digital-arrest-and-rs-7-crore-heist-how-vardhman-group-head-was-tricked-124100100832_1.html
• https://www.hindustantimes.com/business/vardhman-group-chairman-sp-oswal-duped-of-rs-7-crore-fraudsters-posed-as-cbi-101727666912738.html 
• https://www.msspalert.com/native/digital-arrests-the-new-frontier-of-cybercrime

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Executive Summary:

Recently, CyberPeace faced a case involving a fraudulent Android application imitating the Punjab National Bank (PNB). The victim was tricked into downloading an APK file named "PNB.apk" via WhatsApp. After the victim installed the apk file, it resulted in unauthorized multiple transactions on multiple credit cards.

Case Study: The Attack: Social Engineering Meets Malware

The incident started when the victim clicked on a Facebook ad for a PNB credit card. After submitting basic personal information, the victim receives a WhatsApp call from a profile displaying the PNB logo. The attacker, posing as a bank representative, fakes the benefits and features of the Credit Card and convinces the victim to install an application named PNB.apk.  The so called bank representative sent the app through WhatsApp, claiming it would expedite the credit card application. The application was installed in the mobile device as a customer care application. It asks for permissions such as  to send or view SMS messages. The application opens only if the user provides this permission. 

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It extracts the credit card details from the user such as Full Name, Mobile Number, complain, on further pages irrespective of  Refund, Pay or Other. On further processing, it asks for other information such as credit card number, expiry date and cvv number. 

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Now the scammer has access to all the details of the credit card information, access to read or view the sms to intercept OTPs. 

The victim, thinking they were securely navigating the official PNB website, was unaware that the malware was granting the hacker remote access to their phone. This led to ₹4 lakhs worth of 11 unauthorized transactions across three credit cards.

The Investigation & Analysis:

Upon receiving the case through CyberPeace helpline, the CyberPeace Research Team acted swiftly to neutralize the threat and secure the victim’s device. Using a secure remote access tool, we gained control of the phone with the victim’s consent. Our first step was identifying and removing the malicious "PNB.apk" file, ensuring no residual malware was left behind. 

Next, we implemented crucial cyber hygiene practices:

1. Revoking unnecessary permissions – to prevent further unauthorized access.
2. Running antivirus scans – to detect any remaining threats.
3. Clearing sensitive data caches – to remove stored credentials and tokens.

The CyberPeace Helpline team assisted the victim to report the fraud to the National Cybercrime Portal and helpline (1930) and promptly blocked the compromised credit cards.

The technical analysis for the app was taken ahead and by using the md5 hash file id. This app was marked as malware in virustotal and it has all the permissions such as Send/Receive/Read SMS, System Alert Window.  

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In the similar way, we have found another application in the name of “Axis Bank” which is circulated through whatsapp which is having similar permission access and the details found in virus total are as follows:

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Recommendations:

This case study implies the increasingly sophisticated methods used by cybercriminals, blending social engineering with advanced malware. Key lessons include:

• Be vigilant when downloading the applications, even if they appear to be from legitimate sources. It is advised to install any application after checking through an application store and not through any social media. 
• Always review app permissions before granting access.
• Verify the identity of anyone claiming to represent financial institutions.
• Use remote access tools responsibly for effective intervention during a cyber incident.

By acting quickly and following the proper protocols, we successfully secured the victim’s device and prevented further financial loss.

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