WhatsApp case proves India needs strong data protection law says Expert

Agencies
June 28, 2019

New Delhi, Jun 28: As the Indian government steps up the pressure on Internet and social media giants to store consumers' data locally -- especially the payments-related data -- the road ahead is not easy for over one billion citizens as Internet giants have lobbied against the data protection law in the country for long, says the man who has taken the Facebook-owned WhatsApp to the court.

Reacting to an ET report that WhatsApp has set up data storage facilities in India for its soon-to-be-launched Payments service, advocate Virag Gupta said on Thursday that the truth would only come out on July 17 when the Supreme Court takes up the next hearing in the NGO's plea against WhatsApp.

"I do not know whether there is any truth here. Internet giants have lobbied against data protection laws for long. Right noises are also being made at the G-20 and World Economic Forum but why should the sovereign Parliament wait? India should promptly enact data protection law and notify IT Intermediary Rules," Gupta said.

"In addition, Internet giants ought to comply with the Indian laws, including the appointment of Grievance Officer in India and data localisation," added Gupta who represents Centre for Accountability and Systemic Change (CASC) which says WhatsApp has not complied with the Reserve Bank of India's (RBI) circular on data localisation norms.

In the last hearing on May 3, WhatsApp told the Supreme Court that the company is conducting a trial run of its payment service and will fully comply with the RBI norms on data localisation.

WhatsApp conducted the Payments trial last year with almost 1 million people to send money to each other in a simple and secure way.

"In response to India's payments data circular, we've built a system that stores payments-related data locally in India," a WhatsApp spokesperson had earlier told IANS.

With over 200 million users, India is the largest market for WhatsApp.

"WhatsApp payment is useful for people in their daily lives and we hope to expand the feature to all of India soon so we can contribute to the country's financial inclusion goals," the spokesperson added.

According to Gupta who represented RSS ideologue KN Govindacharya before the Delhi High Court in 2012, Internet companies make huge money out of selling consumers' data.

"Sadly, few Indians are concerned over data misuse. Overall, data is the new oil wherein India despite its biggest user base, hardly gets any value out of it. This is primarily because the internet giants are not taxed properly in India," said Gupta who has just released a new book titled "Taxing Internet Giants: American Companies & Data Protection in India".

"The top 15 Internet companies alone have amassed a value of over Rs 20 lakh crore due to their Indian users. The companies' value could be a major chunk of the Indian economy but is serving no purpose to Indians," he lamented.

On June 14, Union IT Minister Ravi Shankar Prasad said that the Ministry of Electronics and Information Technology (MeiTy) has finalised the much-anticipated Personal Data Protection Bill and the next required step is a Cabinet approval before the Bill goes to the Parliament.

"We have finalised the data protection law. I will take it to the Cabinet. We have had 3-4 rounds of consultation," Prasad said while addressing the CII's National Council meeting in the Capital.

Emphasising on data security and the country's hold over its data, the Minister said: "India will uphold its data sovereignty. It will not be negotiable. India is a huge country producing a lot of data."

With the government saying it will not relax the Reserve Bank of India's (RBI) norms for data localisation, the road ahead has become tough for global digital payment providers who have sought more time to comply with the guidelines.

The RBI guidelines say that all digital payment firms like Google Pay, WhatsApp and others must store data locally for their businesses.

"The entire payment data shall be stored in systems located only in India. The data should include end-to-end transaction details and information pertaining to payment or settlement transaction that is gathered / transmitted/processed as part of a payment message/instruction," say RBI guidelines.

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News Network
June 3,2020

New Delhi, Jun 3: Over 1 lakh scanned copies of Indians' national IDs, including Aadhaar, PAN card and passport, have been put on dark web for sale, cyber intelligence firm Cyble said on Wednesday.

The leaked data seems to have originated from a third party and not from the government system, according to a report by Cyble.

"We came across a non-reputed actor who is currently selling over 1 lakh Indian National IDs on the dark net. With such a low reputation, ideally, we would have skipped this; however, the samples shared by the actor intrigued our interest -- and also the volume. The actor is alleged to have access to over 1 lakh IDs from different places in India," Cyble said.

The personal data leaked by cyber criminals leads to various nefarious activities such as identity thefts, scams, and corporate espionage. Many criminals use the personal details in the IDs to win trust of the people over a phone call for fraudulent activities.

Cyber criminals leak personal data of 2.9 cr job-seeking Indians on dark web for free

The Cyble researchers acquired around 1,000 IDs from the seller and confirmed that the scanned IDs belong to Indians.

"Preliminary analysis suggests that the data originated from a third party, and no indication or artefact is indicating that it came from a government system. At this point, Cyble researchers are still investigating this further -- we are hoping to share an update soon," Cyble said.

The scanned ID documents indicate that the data may have been leaked from a company's data base in the segment where they have to comply with 'Know Your Customer' (KYC) norms.

"Cyble researchers have also learned about a surge in KYC and banking scams -- leaks such as this are often used by scammers to target individuals, especially elderlies," Cyble said.

The cyber intelligence firm has recommended people to refrain from sharing personal information especially financial information over phone, e-mail or SMS.

"Regularly monitor your financial transaction, if you notice any suspicious transaction, contact your bank immediately," the company said.

In May, Cyble showed two instances where personal data of 7.65 crore Indians have been put on sale in the dark web. In one instance, the seller claimed to have sourced data of 4.75 crore Indians from online directory Truecaller and in other, the seller claimed to have sourced from job websites.

Truecaller, however, had denied the claim of breach in its database.

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News Network
May 29,2020

Washington, May 29: Reiterating his offer to mediate on the border dispute between India and China, US President Donald Trump has said that he spoke with Narendra Modi about the "big conflict" and asserted that the Indian Prime Minister is not in a "good mood" over the latest flare-ups between the two countries.

Speaking with the reporters in the Oval Office of the White House on Thursday, Trump said a "big conflict" was going on between India and China.

"I like your prime minister a lot. He is a great gentleman," the president said.

"Have a big conflict …India and China. Two countries with 1.4 billion people (each). Two countries with very powerful militaries. India is not happy and probably China is not happy," he said when asked if he was worried about the border situation between India and China.

"I can tell you; I did speak to Prime Minister Modi. He is not in a good mood about what is going on with China," Trump said.

A day earlier, the president offered to mediate between India and China.

Trump on Wednesday said in a tweet that he was "ready, willing and able to mediate" between the two countries.

Responding to a question on his tweet, Trump reiterated his offer, saying if called for help, "I would do that (mediate). If they thought it would help" about "mediate or arbitrate, I would do that," he said.

India on Wednesday said it was engaged with China to peacefully resolve the border row, in a carefully crafted reaction to Trump's offer to arbitrate between the two Asian giants to settle their decades-old dispute.

"We are engaged with the Chinese side to peacefully resolve it," External Affairs Ministry Spokesperson Anurag Srivastava said, replying to a volley of questions at an online media briefing.

While the Chinese Foreign Ministry is yet to react to Trump's tweet which appears to have caught Beijing by surprise, an op-ed in the state-run Global Times said both countries did not need such a help from the US President.

"The latest dispute can be solved bilaterally by China and India. The two countries should keep alert on the US, which exploits every chance to create waves that jeopardise regional peace and order," it said.

In Beijing, Chinese Foreign Ministry spokesman Zhao Lijian said on Wednesday that both China and India have proper mechanisms and communication channels to resolve the issues through dialogue and consultations.

Trump previously offered to mediate between India and Pakistan on the Kashmir issue, a proposal which was rejected by New Delhi.

The situation in eastern Ladakh deteriorated after around 250 Chinese and Indian soldiers were engaged in a violent face-off on the evening of May 5 which spilled over to the next day before the two sides agreed to "disengage" following a meeting at the level of local commanders.

Over 100 Indian and Chinese soldiers were injured in the violence.

The incident in Pangong Tso was followed by a similar incident in north Sikkim on May 9.

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News Network
July 20,2020

New Delhi, July 20: India's retail trade has suffered a business loss of about Rs 15.5 lakh crore in past 100 days due to the COVID-19 lockdown, traders' body CAIT said on Sunday. 

In a statement, the Confederation of All India Traders (CAIT) said traders across the country are depressed because of minimal of the consumers, considerable absence of employees, facing financial crunch and yet have to meet several financial obligations.

"No support policy from the central or state governments is yet another crucial factor which is haunting the traders," CAIT claimed. 

CAIT Secretary General Praveen Khandelwal said the domestic trade is passing through its worst period in the current century which reflects that if immediate steps are not taken about 20 per cent of the shops in India will have to close down their shutters.

The traders’ body has also urged the government to award a substantial package to traders to ensure their survival. Their demands include: Relaxation in payment of taxes, extension in repayment of bank loans and EMIs without any further interest or penalty as well as measures that would provide money directly in the hands of the traders.

In April, the losses stood at about Rs. 5 lakh crore whereas in May it was estimated to be about Rs. 4.5 lakh crore, followed by Rs. 4 lakh crore in June. Losses stood at about 2.5 lakh crore in the first fortnight of July offering a grim snapshot of the effect of the pandemic on consumer spending. 

“Even as the lockdown was relaxed, store footfall was only 10 per cent. Most of these traders do not have deep pockets to sustain this severe economic catastrophe and on the other hand have several financial obligations to meet. At this crucial time, handholding of these traders is all the more much required,” Khandelwal said.

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