Legal aspects of Handling Cyber Frauds

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Legal aspects of Handling Cyber Frauds It act legal law liability

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What is a Cyber Crime? An unlawful act wherein the “Cyberspace” is used either as:- a tool or a target or both

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Cyber Laws

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Recent Rules under IT Act

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Aims behind enactment

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Virtual World Population Explosion : 1 Billion Leading to Changing Face of Crime…… Affecting….

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1 Dirty SMS = 3 Years of Jail Case Study 1 WHY r u sending me DIRTY SMS ? ---------------------- Don’t lie UR cell no has flashed on my screen SORRY !!! But I don’t know you. You are lying!!!

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Threatening email was sent from this cyber cafe. POLICE Cyber Cafe has 100 machines & so many customers. HOW do I Investigate. ? 1 Threatening Email = 3 Years of Jail Case Study 2

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Accounting Software worth crores is stolen. Interested in buying Accounting Software at a cheap cost ? Call 100-999-9999-22 Location :India SALE!! SALE !! SALE!! Accounting Software Location: Finland Case Study 3

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Case Study 4 Stake Holders Fake complaint via E-mail Employee upset with management Demand an Immediate Explanation ????? Disgruntled Employee

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Case Study 5 LOSS LOSS LOSS ????? I am losing all my tenders. SERVER Data 01001 011011 11000….. CRIME SERVER Scenario at the office

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Where is the evidence ? Mobile Tower / Phones Finland OR Indian Server Cloud Internet How to Investigate ? Employees / People How to PROVE the CRIME? How to decipher 010101 ? Can I submit the media in Court ? VEXING Questions

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Forensics is the process of using scientific knowledge for collecting, analyzing, and presenting evidence to the courts. (The word forensics means “to bring to the court.” ) Computer Forensics as the discipline that combines elements of law and computer science to collect and analyze data from computer systems, networks, wireless communications, and storage devices in a way that is admissible as evidence in a court of law. Source : http://www.us-cert.gov/reading_room/forensics.pdf Forensics & Computer Forensics

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Digital Evidence Digital evidence is information and data of value to an investigation that is stored on, received, or transmitted by an electronic device. This evidence is acquired when data or electronic devices are seized and secured for examination. Sample illustration

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May be found in:  Can be hidden in:  Can relate to : Digital Evidence

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Office Setup Cyber Cafe Home PC Scene of Acquisition

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Computer Forensics process would involve….. Forensic analysis of digital information Identifying network computer intrusion evidence Identifying & examining  malicious files. Employing techniques to  crack file & system passwords. Detecting  steganography Recovering deleted, fragmented & corrupted data Maintaining evidence custody procedures Courtroom Presentation

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Steps in Computer Forensics Identification of Digital Evidence Acquisition of Media Forensic Analysis of Media Documentation & Reporting

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THE A TEAM Domain Expert Computer Forensics expert Forensics Accounting expert Software expert Lawyer

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Acquisition of Media Authenticate the confiscated media Hash value of the suspect media Hash value of the cloned image file If acquisition hash equals verification hash, image is authentic. SHA 1/256

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Documentation & Reporting Broad outline of Computer Forensic Report Introduction to the case Background of the issue Details of forensic analysis carried out Certification

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Evidence Forms A detailed sheet about each evidence item Item serial number Item detailed description Type Make Model Date and time collected Notes Any serial numbers, labels

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Chain of Custody The movement and location of physical evidence from the time it is obtained until the time it is presented in court Logs all evidence moves HANDED BY HANDED TO DATE & TIME Item serial number Reason

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Creating an Image of Media Image is a bit-for-bit copy of the original If a disk has 5000 sectors, then the image created will have an exact copy of all 5000 sectors in the same order Media (evidence) must be protected from accidental writes / alterations Hard disk (media) Write-blocker Device Imaging workstation

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Write blockers & alternatives Write-blocker is a device that sits in between the computer and the media Blocks all write commands Lets through all read commands Prevents accidental alteration / deletion / addition or data Alternatives include using a forensic live boot CD or a drive duplicator

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Indian Evidence Act Sec. 3 (a) – Scope of definition of evidence expanded to include electronic records

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Sec. 65B - Admissibility of electronic records The person owning or in-charge of the computer from which the evidence is taken has to give certificate as to the genuineness of electronic record. INDIAN EVIDENCE ACT

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Sec. 88A - Presumption as to electronic messages The Court may presume that an electronic message forwarded by the originator through an electronic mail server to the addressee to whom the message purports to be addressed corresponds with the message as fed into his computer for transmission; but the Court shall not make any presumption as to the person by whom such message was sent. INDIAN EVIDENCE ACT

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The Information Technology Act Sec. 79A - Central Government to notify Examiner of Electronic Evidence The Central Government may, for the purposes of providing expert opinion on electronic evidence before any court or other authority specify, by notification in the Official Gazette, any Department, body or agency of the Central Government or a State Government as an Examiner of Electronic Evidence

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Civil offences

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Section 43 Unauthorised Access Remedy – Damages by the way of compensation Amount – Unlimited What needs to be proved – Amount of damages suffered

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Shri. Thomas Raju Vs ICICI Bank Case decided by – the Adjudicating officer, Government of Tamilnadu Petitioner suffered a loss of Rs. 1,62,800/- as a result of the phishing attack Amount was supposed to have been transferred on the account of another customer of ICICI Bank Petitioner claimed that he had suffered a loss due to unauthorised access to his account Petitioner further claimed that he had suffered a loss as bank has failed to establish a due diligence and in providing adequate checks and safeguards to prevent unauthorised access into his account. Bank had also not adhered to the KYC norms given by the RBI.

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Section 66 Removal of definition of “hacking” Section renamed as Computer related offences All the acts referred under Section 43, are covered u/Sec. 66 if they are done “dishonestly” or “fraudulently”

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Section 43(A) – Compensation for failure to protect data If body corporate, possessing, dealing or handling any sensitive personal data or information in a computer resource which it owns, controls or operates, is negligent in implementing and maintaining reasonable security practices and procedures and thereby causes wrongful loss or wrongful gain to any person Liability – Damages by the way of Compensation

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HSBC - Nadeem Kashmiri case Based on complaints from customers - HSBC carried internal investigation - registers case Involvement of Call centre employee (Nadeem Kashmiri) He was arrested U/Sec. 66 & 72 HSBC also sued Call centre for the loss

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Who is liable?

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Issues What is Sensitive Personal Information? What are Reasonable Security Practices and Procedures?

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sensitive Personal data Or information Rule 8 - Information Technology (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011.

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Reasonable Security Practices

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Compliance policies

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Collection of Information Rule 5 - IT (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011

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Collection of Information

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Privacy and Disclosure of Information policy Rule 4 - IT (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011

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Contents of Privacy policy

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Disclosure Rule 6 - IT (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011

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Transfer of information Rule 7 - IT (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011

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Sec 72(A) (Criminal offence) Punishment for Disclosure of information in breach of lawful contract - Knowingly or intentionally disclosing “Personal Information" in breach of lawful contract Imprisonment up to 3 years or fine up to 5 lakh or with both (Cognizable but Bailable)

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Criminal offences

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Section 66 A Sending of offensive or false messages Covers following sent by sms / email:- grossly offensive messages menacing messages false information sent for causing annoyance, inconvenience, danger, obstruction, insult, injury, criminal intimidation, enmity, hatred or ill will.. phishing, email spoofing, Spam mails, Threat mails Punishment – imprisonment upto 3 years and fine

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Section 66 B Dishonestly receiving stolen computer resource or communication device Covers use of stolen Computers, mobile phones, SIM Cards, etc Punishment – imprisonment upto 3 years and fine

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Section 66 C Identity theft Fraudulently or dishonestly using someone else’s electronic signature, password or any other unique identification feature Punishment - imprisonment upto 3 years and fine

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Section 66 D Cheating by Personation Cheating by pretending to be some other person  To create an e-mail account, Social networking a/c on someone else's name Punishment – imprisonment upto 3 years and fine

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Investigation Powers Section 78 Cyber crime cases can now be investigated by Inspector rank police officers (PI) Earlier such powers were with the “DYSP/ACP”

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Sec. 79 Liability of Intermediary Intermediary is not liable for any third party information, data, or communication link made available or hosted by him – if his function is limited to providing access to such link the intermediary does not— initiate the transmission, select the receiver of the transmission, and select or modify the information contained in the transmission;

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Sec. 79 Liability of Intermediary Observing due diligence – The Information Technology (Intermediaries guidelines) Rules, 2011

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Compounding of Offences Section 77 (A) Compounding – “Out of court settlement” Offences - for which less than three years imprisonment has been provided and Which are not committed against women or children can be compounded

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Possible Solutions

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