We are anonymous, we are legion

The Fintech Disruption - Innovation, Regulation, and Transformation

praskrishna — 2017-03-29T02:10:49Z

Sumandro Chattapadhyay attended an event organized by Carnegie India on March 28, 2017. The aim of the initiative was that inclusive and sustainable regulations require constant interaction between policy makers and industry.

Select senior level policymakers, leaders from the banking industry and dynamic start-up founders and innovators gathered for the meet-up. The intention is to follow up on the discussions and debates from the round-table and come out with a detailed report on Fintech Regulations based on the research and conversations with start-ups and other valuable stakeholders.

See the conference agenda

For more details visit https://cis-india.org/internet-governance/news/the-fintech-disruption-innovation-regulation-and-transformation

Debate on Cyber Crime in TV9

praskrishna — 2017-03-28T15:25:40Z

Vidushi Marda took part in a debate on cyber crime which was aired on TV9 on January 13, 2017.

Vidushi spoke about the the definition of "cyber crime" within the IT Act, and also on proportionality of punishment/the best way to deal with such incidents. This programme was aired after a few college websites had been hacked to display false notices from deans, registrars, etc.

For more details visit https://cis-india.org/internet-governance/news/debate-on-cyber-crime-in-tv9

Democracy and the Internet in 2017

praskrishna — 2017-03-28T15:19:14Z

Vidushi Marda gave a talk at St. Joseph's College of Commerce in Bengaluru on January 25, 2017. Vidushi spoke about democracy and the internet. The 50 minute talk was followed by 20 minutes of questions/comments.

Undergraduate students from a variety of disciplines such as social science, engineering, business, etc. attended the lecture. The talk broadly focused on:

The relationship between democracy and the internet. Why/how are they are closely related.
The internet's role in changing information exchange and communication. I drew on examples like the Arab Spring/Elections/Political change.
The growing usage of internet platforms for elections and also governance. Problematising the fact that these few private platforms seem to monopolise the internet, are only restricted to a certain elite audience, cannot be conflated with actual governance etc.
Fake News.
Algorithmic curation and filter bubbles.

For more details visit https://cis-india.org/internet-governance/news/democracy-and-the-internet-in-2017

CIS representation at ICANN 58

praskrishna — 2017-03-28T14:22:22Z

The Internet Corporation for Assigned Names and Numbers (ICANN) organized ICANN 58 at Copenhagen from March 9 to March 16, 2017. On behalf of the Centre for Internet & Society (CIS), Vidushi Marda participated in the event and made a presentation.

CIS' focus at ICANN can broadly be divided into four heads: human rights, jurisdiction, transparency and accountability. Since March last year, we have also been pushing for changes in ICANN's expected standards of behavior, along with adoption of an anti harassment policy. After the IANA transition in September last year, the community is now divided into sub groups (SGs) that look into different issues for ICANN post transition, including the 4 that CIS works on. More information on ICANN 58 can be accessed here.

For more details visit https://cis-india.org/internet-governance/news/cis-representation-at-icann-58

India’s biometric ID scans make sci-fi a reality

praskrishna — 2017-03-28T02:45:28Z

I have been thinking about my fingerprints and the secrets that may lie within my eyes — and whether I want to share them with the Indian government. I may not however have a choice.

The article by Amy Kazmin was published in the Financial Times on March 27, 2017. Sunil Abraham was quoted.

India has the world’s largest domestic biometric identification system, known as Aadhaar. Since 2010, the government has collected fingerprints and iris scans from more than 1bn residents, and each has been assigned a 12-digit identification number.

The scheme is championed by Nandan Nilekani, the billionaire co-founder of IT company Infosys. It was initially conceived to ensure poor Indians received subsidised food entitlements and other welfare benefits that were previously siphoned off by unscrupulous intermediaries. It was also seen as offering poor Indians, many of whom lack birth certificates, with a portable ID that can be used anywhere in the country.

Until now, obtaining an Aadhaar number was voluntary, though most Indians enrolled without hesitation as they see its potential benefits. But New Delhi is now enlisting Aadhaar, which means “foundation” or “base” in Hindi, in more than just welfare schemes. This would mean sharing one’s biometric details isn’t really optional any more despite a Supreme Court ruling that it should be “purely voluntary”.

Last week, the government issued a rule requiring an Aadhaar number for filing tax returns, ostensibly to improve tax compliance. It has also decided that all cell phone numbers must be linked to an Aadhaar number by 2018. Even Indian Railways has plans to demand Aadhaar from those booking train tickets online.

What was once touted as an initiative to improve delivery of welfare suddenly now seems like the foundation of a surveillance state — and I admit the prospect of putting my own biometrics in the database leaves me uneasy.

As a US citizen, I’ve never had to give my biometric data to my government. Domestically, fingerprints are only taken from criminal suspects, or applicants for government jobs, though I know foreign citizens are fingerprinted on arrival.

To me, the idea of sharing eye scans evokes the dystopian Hollywood film, Minority Report, which depicts a near future in which optical-recognition cameras allow the authorities to identify anyone in any public place. The hero on the run, played by Tom Cruise, has an illegal eye transplant to avoid detection.

In recent days, many Indian academics and activists have raised concerns about Aadhaar data security, the lack of privacy rules and the absence of any accountability structure if data are misused.

"Biometrics is being weaponised," says Sunil Abraham, executive director of the Bangalore-based Centre for Internet and Society. "What you need to be worried about is that someone will clean out your bank account or frame you in a crime," he says.

Pratap Bhanu Mehta, director of the Centre for Policy Research, has written of the “conversion of Aadhaar from a tool of citizen empowerment to a tool of state surveillance and citizen vulnerability”.

I call Mr Nilekani, of whose honourable intentions I have no doubt. After leaving Infosys in 2009, he spent five years in government, working to get Aadhaar off the ground. He says he is “extremely offended” when his project is accused of being part of a surveillance society, a narrative he says is “completely misrepresenting” the project. “I can steal your fingerprint off your glass. I don’t need this fancy technology,” he says. “Surveillance is far better done by following my phone, or when I use a map to order a taxi: the map knows where I am. Our internet companies know where you are.”

But in a society known for ingenious means of bypassing rules, such as having multiple taxpayer ID cards to aid evasion, Mr Nilekani says biometric authentication of individuals can bring discipline and reduce cheating. “It’s like you are creating a rule-based society,” he says, “it’s the transition that is going on right now.” I hang up, hardly reassured. To me, it seems clear that in India, as in so many places these days, Big Brother is increasingly watching.

For more details visit https://cis-india.org/internet-governance/news/financial-times-march-27-2017-amy-kazmin-indias-biometric-id-scans-make-sci-fi-a-reality

Other Than Women: Exploring Harassment and Difference Online

praskrishna — 2017-03-27T16:11:30Z

A satellite session at RightsCon in Brussels is being organized by the Tactical Technology Collective on March 28, 2017. Rohini Lakshané is a speaker at this event.

Tactical Tech is interested in the problem of online harassment as a barrier to political participation in quantified societies, and in terms of the harm it causes those targeted. We have been working to customise tactics of resistance and support to communities/individuals who are working online and are exposed to, or are at risk of, harassment.

This Satellite Session at Rightscon is fashioned as an intervention into ongoing advocacy, research, and practical support efforts, and seeks to interrogate a wide range of possible framings of (as well as responses to) online harassment.

For more info, click here

For more details visit https://cis-india.org/internet-governance/news/other-than-women-exploring-harassment-and-difference-online

Round Table on Privacy and Data Protection at NIPFP

praskrishna — 2017-03-27T16:02:59Z

National Institute of Public Finance & Policy organized a round-table on privacy and data protection on March 24, 2017 in New Delhi.

Click to see the agenda.

For more details visit https://cis-india.org/internet-governance/news/round-table-on-privacy-and-data-protection-at-nipfp

Why We Should All Worry About The Mandatory Imposition Of Aadhaar

praskrishna — 2017-03-27T15:02:10Z

It appears that with each passing day, the government is linking an increasing number of benefits and government services to the 12-digit biometric-based Aadhaar number for Indians, despite growing concerns around its data privacy and security.

The article by Rimin Dutt and Ivan Mehta was published by Huffington Post on March 24, 2017. Sunil Abraham was quoted.

Aadhaar, which collects among other information, citizens' iris scans and fingerprints and stores them into a centralised database for a prolonged time with only loose guidelines and no pre-existing laws to ensure the privacy of that data, is now linked to no less than 38 government schemes, including the government's latest directive –- that Aadhaar become mandatory for tax filing and securing PAN numbers -- introduced by Finance Minister Arun Jaitley earlier this week.

Jaitley openly admitted on Wednesday in the Parliament that the government, in effect, would be forcing people to get Aadhaar in an effort to increase tax compliance.

Aadhaar's use, by no means, is restricted to government agencies alone. A growing number of private financial institutions are now fulfilling their "Know Your Customer" or e-KYC formalities by making Aadhaar compulsory. The government is also in the process of making Aadhaar the basis of all financial transactions.

While the timing of the government's aggressive push of Aadhaar, in itself, is raising eyebrows among political observers, there are some serious concerns about this unique experiment that deserve stronger scrutiny.

Why disregard the Supreme Court?

In making Aadhaar mandatory for filing taxes and securing core taxpayer identity, the government has openly gone against a Supreme Court order from last year that explicitly stated that the Aadhaar Card scheme is "purely voluntary" and cannot be made mandatory until the court has decided on this.

The government has defended its move, saying it is allowed to do so under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act 2016.

However, as Gopal Krishna, a member of the Citizens Forum for Civil Liberties, writes in Business Today, the passage of the Act by the Parliament "does not automatically imply that any agency can make UID/Aadhaar compulsory disregarding the Supreme Court's orders."

According to Krishna, in doing so, the government is "clearly stepping beyond" the mandate of the Aadhaar Act, and also acting in contempt of the Parliament, according to him.

In addition, if tax evasion was the driving factor behind the move, it begs the question — wouldn't forcing people to get Aadhaar actually do the opposite by adding another layer of hassle?

Indeed, tax experts have noted how this requirement may hinder tax collection. Archit Gupta, Founder & CEO ClearTax.com, a tax service provider told HuffPost India, "The [Aadhaar] announcement is likely to be a dampener to tax filers, specially first-timers ... FY 2016-17 filing is expected to see a large number of first-time filers due to demonetisation efforts, and this move may make them more guarded."

Why not strengthen PAN?

The government already has an extensive mandate for the Permanent Account Number (PAN) cards, which are required to validate several important services or for undertaking transactions such as buying and selling property or jewellery worth over ₹2 lakhs. Last year, the government, in fact, said that the National Pension System (NPS) scheme would accept PAN cards over Aadhaar cards to validate new customers.

On Wednesday, however, Jaitley said PAN cards have been misused by certain people to evade taxes, and there are reports that Aadhaar may become the ultimate authenticating document. However, the continued and growing use of PAN along with Aadhaar adds an extra layer of formalities for citizens to access government services, which are their constitutionally guaranteed rights.

How safe is Aadhaar anyway?

Depending on who you talk to, the safety concerns of Aadhaar come up as a pressing issue, especially in the wake of a recent security incident when the Unique Identification Authority of India initiated police action against entities associated with Axis Bank including Suvidhaa Infoserve and e-sign provider eMudhra, which had allegedly engaged in unauthorised authentication and impersonation by illegally storing Aadhaar biometrics.

Earlier this month, in a separate incident, security researcher Srinivas Kodali warned Indian authorities of a website that was leaking Aadhaar demographic data of over five lakh minors, as well as the existence several parallel databases that had key identification data linked to Aadhaar, Scroll reported.

In the absence of any privacy laws in India, these security concerns have assumed even greater significance.

UIDAI, the authority behind Aadhaar, has maintained the technology behind Aadhaar is robust and that it uses advanced encryption to transmit and store data. It specifically denied that any breach of centralised data took place in the Axis Bank incident, saying the case was an isolated incident.

However, in a rather ironic twist in the Aadhaar Act, which itself contains no provisions to address privacy concerns, any legal action against any misuse or theft of Aadhaar data can only be initiated by UIDAI, leaving citizens with no legal recourse should a breach occur.

That represents an obvious conflict of interest as it gives exclusive power to the very authority that is responsible for the security and confidentiality of identity information and authentication records, PRS Legislative Research, has noted.

In addition, the controversial Aadhaar Act contains several other inherent dangers such as the potential to profile citizens based on the linking of other databases with Aadhaar by studying patterns of behaviour.

"Techniques such as running computer programmes across datasets for pattern recognition can be used for various purposes such as detecting potential illegal activities...However, these can also lead to harassment of innocent individuals who get identified incorrectly as potential threats," noted PRS Legislative.

There are currently no safeguards to prevent inappropriate profiling, instances of which could increase as more and more private organisations link their data to Aadhaar, and potentially exploit data for commercial purposes without the consent of citizens.

The US, in comparison, has laws in place that require agencies that collects data to submit an annual report to US Congress on all such data mining activities.

Other unresolved concerns

There are several other concerns related to the widespread use of Aadhaar card and the power it is afforded under the Aadhar act. The act allows UIDAI to collect biometric information beyond iris and fingerprint scans, for example, to include other bio-data such as DNA, noted PRS.

The act also allows private agencies to use Aadhaar, which contradicts an earlier stated objective of the scheme that sought to restrict the use of Aadhaar for only government expenditures.

"It allows private persons to use Aadhaar as a proof of identity for any purpose. This provision will enable private entities such as, airline, telecom, insurance, real estate etc. companies, to require Aadhaar as a proof of identity for availing their services," PRS has noted.

There's also the worrying prospect of Aadhaar being used as a surveillance tool by the government, instead of an e-governance technology, Sunil Abraham, executive director of research organisation, Centre for Internet and Society, told the The Hindu Business Line, adding biometrics only make citizens transparent to the state and not the state transparent to citizens.

"We warned the government six years ago, but they ignored us," said Abraham.

Krishna has a more dire warning: "The JAM Trinity -- Jan Dhan Yojana, Aadhaar and mobile numbers -- may well be a fish bait to trap unsuspecting citizens into the world's biggest transnational biometric database to turn them into subjects under surveillance forever in the name of a set of welfare and anti-poverty policies.

What has been done to address the security concerns?

It is unclear what the government or UIDAI may have done in the wake of the security incident to upgrade its systems. According to an expert HuffPost Post India talked to, many third party apps that are using Aadhar data may not be screened or audited for security, which is a huge worry.

Kodali told HuffPost India that Aadhaar has potential design issues when it comes to information security.

"By design it allows anyone store information of the Aadhaar holder through [application programming interface]. This is creating many parallel databases with Aadhaar as a key," he said.

He notes that security is an afterthought for many institutions and companies.

"UIDAI and the architects of Aadhaar do not accept that data can be a liability instead of an asset," he said. "The mandatory nature of Aadhaar without the right infrastructure and skilled workforce is not just a cyber security issue, but a national security issue."

When will India get privacy laws?

No one quite knows. But there's a growing call for a need for strict privacy laws, given the move towards digital financial transactions and growing e-commerce use. Most advanced economies including the US, the UK, France, Australia and New Zealand have enacted privacy laws.

However, in India, the right to privacy still doesn't exist despite it being recognised by even the UN charter of human rights. Article 12 of the Universal Declaration of Human Rights states, "No one shall be subjected to arbitrary interference with his privacy, family, home or correspondence, nor to attacks upon his honour and reputation. Everyone has the right to the protection of the law against such interference or attacks."

The potential for cyber criminals to misuse citizen data isn't lost on even prominent IT industry experts.

Recently, the chief of IT industry body Nasscom R Chandrashekhar told PTI that personal data of online consumers can never be fully secure, emphasising the need for strict consumer protection laws. "More than 3 million credit card data details were misused recently. Let us face it, these kind of security breaches will take place. There is nothing called fully perfect security in IT," he said.

To be sure, Aadhaar has been lauded by several prominent experts and economists, and it is, undoubtedly, an ambitious project to potentially aid financial inclusion for a large population that has historically been outside of a formal financial services net. India also has one of the lowest tax compliance rates, making tax collection a priority for the government.

Recently, Paul Romer, World Bank's chief economist told Bloomberg, "The system in India is the most sophisticated that I've seen ... It's the basis for all kinds of connections that involve things like financial transactions. It could be good for the world if this became widely adopted."

But given the sensitivity of citizen biometrics data and potential for misuse, the government ought to be held accountable for its proper use and ensure enough safeguards are put in place before its imposition on each citizen.

For more details visit https://cis-india.org/internet-governance/news/huffington-post-rimin-dutt-ivan-mehta-march-24-2017-why-we-should-all-worry-about-the-mandatory-imposition-of-aadhaar

State of Digital Rights in India (Delhi, March 24)

Japreet Grewal and Sumandro Chattapadhyay — 2017-03-27T13:21:20Z

The Centre for Communication Governance at National Law University, Delhi and the Internet Freedom Foundation, in association with Access Now, are hosting a discussion on The State of Digital Rights in India on March 24, 2017 (Friday) from 6.00 pm onwards at Lecture Room-I, India International Centre- Annexe, New Delhi. Japreet Grewal and Sumandro Chattapadhyay will participate in the panel discussions.

Registration: Eventbrite

March 24, 2017 marks the two year anniversary of the landmark Shreya Singhal judgment. This was a very significant ruling on freedom of speech and expression and occupies an important place in the Supreme Court’s discourse on civil liberties. The judgment traces out the contours of free speech on the Internet in India and unequivocally holds that the right to freedom of expression provided under Article 19(1)(a) applies to speech over the Internet, making it clear that this is a medium-neutral right.

The event aims to shed some light on this key judgment and discuss ongoing discussions regarding our civil liberties and freedoms online before courts and the Parliament. We would also like to take this opportunity to discuss some of the other pressing issues like Network Neutrality, Internet shutdowns, Privacy and User Security which need immediate attention and engagement of our democratic institutions. We hope to formulate effective strategies which will further shape the legal and policy framework in India, and facilitate better collaborative efforts between stakeholders.

We hope to bring together everyone who contributed to the judgment, and those who do work connected with it, so that we may build on it to seek a better legal framework to protect online speech and to discuss the threats surrounding digital rights and how best build on the foundations of the judgment.

We would be grateful if you could take out some time on Friday evening (6PM) and be a part of this important discussion. The discussion will be followed by dinner and an Open Bar for an Open Internet, which will start from 9.00 pm at the Annexe Court in the India International Centre - Annexe. In case you are unable to attend the seminar, please do join us for dinner!

Featuring:

A keynote address on our online freedoms and policymaking, by Shri Tathagata Satpathy (Member of Parliament, Lok Sabha)
A legal panel analysing the legacy of the Shreya Singhal v. Union of India judgment
Beyond Shreya Singhal: A conversation with women on the future of our digital rights
Briefings on the state of digital rights in our courts and in Parliament
A conversation on the path ahead for our civil liberties and digital rights community

For more details visit https://cis-india.org/internet-governance/news/state-of-digital-rights-in-india-delhi-march-24

Benefits, Harms, Rights and Regulation: A Survey of Literature on Big Data

Amber Sinha, Vanya Rakesh, Vidushi Marda and Geethanjali Jujjavarapu — 2017-03-23T02:17:56Z

This survey draws upon a range of literature including news articles, academic articles, and presentations and seeks to disaggregate the potential benefits and harms of big data, organising them into several broad categories that reflect the existing scholarly literature. The survey also recognises the non-technical big data regulatory options which are in place as well as those which have been proposed by various governments, civil society groups and academics.

The survey was edited by Sunil Abraham, Elonnai Hickok and Leilah Elmokadem

Introduction

In 2011, it was estimated that the quantity of data produced globally surpassed 1.8 zettabyte.By 2013 it had increased to 4 zettabytes. With the nascent development of the so-called ‘Internet of Things’ gathering pace, these trends are likely to continue. This expansion in the volume, velocity, and variety of data available, together with the development of innovative forms of statistical analytics, is generally referred to as “Big Data”; though there is no single agreed upon definition of the term. Although still in its initial stages, big data promises to provide new insights and solutions across a wide range of sectors, many of which would have been unimaginable even a decade ago.

Despite enormous optimism about the scope and variety of big data’s potential applications, many remain concerned about its widespread adoption, with some scholars suggesting it could generate as many harms as benefits. Most notably are the concerns about the inevitable threats to privacy associated with the generation, collection and use of large quantities of data. Concerns have also been raised regarding, for example, the lack of transparency around the design of algorithms used to process the data, over-reliance on big data analytics as opposed to traditional forms of analysis and the creation of new digital divides. The existing literature on big data is vast. However, many of the benefits and harms identified by researchers tend to focus on sector specific applications of Big Data analytics, such as predictive policing, or targeted marketing. Whilst these examples can be useful in demonstrating the diversity of big data’s possible applications, they do not offer a holistic perspective of the broader impacts of Big Data.

Click to read the full survey here

For more details visit https://cis-india.org/internet-governance/blog/benefits-harms-rights-and-regulation-survey-of-literature-on-big-data

Comments on Information Technology (Security of Prepaid Payment Instruments) Rules, 2017

amber — 2017-03-23T01:54:28Z

The Centre for Internet and Society submitted comments on the Information Technology (Security of Prepaid Payment Instruments) Rules, 2017. The comments were prepared by Udbhav Tiwari, Pranesh Prakash, Abhay Rana, Amber Sinha and Sunil Abraham.

1. Preliminary

1.1. This submission presents comments by the Centre for Internet and Society^[1] in response to the Information Technology (Security of Prepaid Payment Instruments) Rules 2017 (“the Rules”).^[2] The Ministry of Electronics and Information Technology (MEIT) issued a consultation paper (pdf) which calls for developing a framework for security of digital wallets operating in the country on March 08, 2017. This proposed rules have been drafted under provisions of Information Technology Act, 2000, and comments have been invited from the general public and stakeholders before the enactment of these rules.

2. The Centre for Internet and Society

2.1. The Centre for Internet and Society, (“CIS”), is a non-profit organisation that undertakes interdisciplinary research on internet and digital technologies from policy and academic perspectives. The areas of focus include digital accessibility for persons with diverse abilities, access to knowledge, intellectual property rights, openness (including open data, free and open source software, open standards, and open access), internet governance, telecommunication reform, digital privacy, and cyber-security.

2.2. This submission is consistent with CIS’ commitment to safeguarding general public interest, and the interests and rights of various stakeholders involved, especially the privacy and data security of citizens. CIS is thankful to the MEIT for this opportunity to provide feedback to the draft rules.

3. Comments

3.1 General Comments

Penalty

There is no penalty for not complying with these rules. Even the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011 doesn’t have penalties. Under section 43A of the Information Technology Act (under which the 2011 Rules have been promulgated), a wrongful gain or a wrongful loss needs to be demonstrated. This should not be a requirement for financial sector.

Expansion to Contractual Parties.

A majority of these rules, in order to be effective and realistically protect consumer interest, should also be expanded to third parties, agents, contractual relationships and any other relevant relationship an e-PPI issuer may delegate as a part of their functioning.

3.2 Rule 2: Definitions

Certain key words relevant to the field of e-PPI based digital payments such as authorisation, metadata, etc. are not defined in the rules and should both be defined and accounted for in the rules to ensure modern developments such as big data and machine learning, digital surveillance, etc. do not violate human rights and consumer interest.

3.2 Rule 7: Definition of personal information

Rule 7 provides an exhaustive list of data that will be deemed to be personal information for the purposes of the Rules. While information collected at the time of issuance of the pre-paid payment instrument and during its use is included within the scope of Rule 7, it makes no reference to metadata generated and collected by the e-PPI issuer.

3.3 Rule 4: Inadequate privacy protections

Rule 4(2) specifies the details that the privacy policies of each e-PPI issuer must contain. However, these specifications are highly inadequate and fall well below the recommendations under the National Privacy Principles in Report of the Group of Experts on Privacy chaired by Justice A P Shah.

Suggestions: The Rules should include include clearly specified rights to access, correction and opt in/opt out, continuing obligations to seek consent in case of change in policy or purpose and deletion of data after purpose is achieved. Additionally, it must be required that a log of each version of past privacy policies be maintained along with the relevant period of applicability.

3.4 Rule 10: Reasonable security practices

Problem: Financial information (“such as bank account or credit card or debit card or other payment instrument details”) is already invoked in an inclusive manner in the definition of ‘personal information’ in Rule 7. Given this there is no need to make the Reasonable Security Practices Rules applicable to financial data through this provisions: it already is, and it is best to avoid unnecessary redundancy.

Solution: This entire rule should be removed.

3.5 Rule 12: Traceability

Problem: There is a requirement created under this rule that payment-related interactions with customers or other service providers be “appropriately trace[able]”. But it is unclear what that would practically mean: would IP logging suffice? would IMEI need to be captured for mobile transactions? what is “appropriately” traceable? — none of those questions are answered.

Suggestion: The NPCI’s practices and RBI regulations, for instance, seek to limit the amount of information that entities like e-PPI providers have. These rules need to be brought in line with those practices and regulations.

3.6 Rule 5: Risk Assessment

Rule 5 requires e-PPI issuers to carry out risk assessments associated with the security of the payments systems at least once a year and after any major security incident. However, there are no transparency requirements such as publications of details of such review, a summary of the analysis, any security vulnerabilities discovered etc.

Suggestion:

Broaden the scope of this provision to include not just risk assessments but also security audits.
Mandate publication of risk assessment and security audit reports.

3.7 Rule 11: End-to-End Encryption

The rule concerning end-to-end encryption (E2E) needs significantly greater detailing to be effective in ensuring the the protection of information at both storage and transit.

Suggestions: Elements such as Secure Element or a Secured Server and Trusted User Interface, both concepts to enable secure payments, can be detailed in the rule and a timeline can be established to require hardware, e-PPI practices and security standards to realistically account for such best practices to ensure modern, secure and industry accepted implementation of the rule.

3.8 Rule 13: Retention of Information

Problem: Rule 13 leaves the question of retention entirely unanswered by deferring the future rulemaking to the Central Government.

Suggestions: Rule 13 should be expanded to include the various categories of information that can be stored, guidelines for the short-term (fast access) and long-term storage of the information retained under the rule and other relevant details. The rule should also include the security standards that should be followed in the storage of such information, require access logs be maintained for whenever this information is accessed by individuals, detail secure destruction practices at the end of the retention period and finally mandate that end users be notified by the e-PPI issuer of when such retained information is accessed in all situations bar exceptional circumstances such as national security, compromising an ongoing criminal investigations, etc.

3.9 Rule 14: Reporting of Cyber Incidents

Rule 14 is an excellent opportunity to uphold transparency, accountability and consumer rights by mandating time- and information-bound notification of cyber incidents to customers, including intrusions, database breaches and any other compromise of the integrity of the financial system. While the requirement of reporting such incidents to CERT-In is already present in the Rule 12 of the CERT Rules, the rule retains the optional nature of notifying customers. The rule should include an exhaustive list of categories or kinds of cyber incidents that should be reported to affected end users without compromising the investigation of such breaches by private organisations and public authorities. Further, the rule should also include penalties for non-compliance of this requirement (both to CERT-In and the consumer) to serve as an incentive for e-PPI issuers to uphold consumer public interest. The rule should be expanded to include a detailed mechanism for such reporting, including when e-PPI issuers and the CERT-In can withhold information from consumers as well as requiring the withheld information be disclosed when the investigation has been completed. Finally, the rule should also require that such disclosures be public in nature and consumers not be required to not disseminate such information to enable informed choice by the end user community.

Suggestion:

(1) In Rule 14(3) “may” should be substituted by “shall”.

(2) Penalties of up to 5 lakh rupees may be imposed for each day that the e-PPI issuer fails to report any severe vulnerability that could likely result in harm to customers.

3.10 Rule 15: Customer Awareness and Education

Problem: Rule 15 on Customer Awareness and Education by e-PPI issuers does not take into account the vast lingual diversity and varied socio-economic demographic that makes up the end users of e-PPI providers in India, by mandating the actions under the rule must account for these factors prior to be propagated.

Solutions: The rule must ensure that e-PPI issuers track record in carrying out awareness is regularly held accountable by both the government and public disclosures on their websites. Further, the rule can be made more concrete and effective by including mobile operating systems in their scope (along with equipments), mandating awareness for best practices for inclusive technologies like USSD banking, specifying notifications to include SMS reports of financial transactions, etc.

3.11 Rule 16: Grievance Redressal

Problem: Rule 16 lays down the requirement of grievance redressal, without specifying appellate mechanisms (both within the organisation and at the regulatory level), accountability (via penalties) for non-compliance of the rule nor requiring a clear hierarchy of responsibility within the e-PPI organisation. These factors seriously compromise the efficacy of a grievance redressal framework.

Solutions: Similar rules for grievance redressal that have been enacted by the Insurance Regulatory and Development Authority for the insurance sector and the Telecom Regulatory Authority of India for the telecom sector can and should serve as a reference point for this rule. Their effectiveness and real world operation should also be monitored by the relevant authorities while ensuring sufficient flexibility exists in the rule to uphold consumer rights and the public interest. Proper appellate mechanisms at the regulatory level are essential along with penalties for non-compliance.

3.12 Rule 17: Security Standards

Problem: Rule 17 empowers the Central Government to mandate security standards to be followed by e-PPI issuers operating in India. While appreciable in its overall outlook on ensuring a minimum standard of security, the Rule needs be improved upon to make it more effective. This can be in done by specifying certain minimum security standards to ensure all e-PPI issuers have a minimal level of security, instead of leaving them open to being intimated at a later date.

Solutions: Standards that can either be made mandatory or be used as a reference point to create a new standard under Rule 17(2) are ISO/IEC 14443, IS 14202, ISO/IEC 7816, PCI DSS, etc. Further, the Rule should include penalties for non-compliance of these standards, to make them effectively enforceable by both the government and end users alike. Additional details like the maximum time period in which such security standards should be implemented post their notification, requiring regular third party audits to ensure continuing compliance and effectiveness and requiring updated standards be used upon their release will go a long way in ensuring e-PPI issuers fulfil their mandate under these Rules.

^[1] http://cis-india.org/

^[2] http://meity.gov.in/sites/upload_files/dit/files/draft-rules-security%20of%20PPI-for%20public%20comments.pdf

For more details visit https://cis-india.org/internet-governance/blog/comments-on-information-technology-security-of-prepaid-payment-instruments-rules-2017

Privacy concerns multiply for Aadhaar, India’s national biometric identity registry

praskrishna — 2017-03-22T14:38:52Z

The largest and most sophisticated biometric identity system of any country in the world, India’s Aadhaar, is sparking new fears that the personal data it stores on more than 1.1 billion people could be vulnerable to exploitation.

The article by Kaelyn Lowmaster was published by One World Identity on March 17, 2017, Sunil Abraham was quoted.

Aadhaar, which translates to “foundation” in Hindi, is a unique 12-digit code tied to citizens’ biometric data and personal information. The system was launched in 2009 in an effort to extend social services to India’s millions of unregistered citizens, and to cut down on welfare benefit “leakage” resulting from an opaque and often corrupt bureaucracy.

Constructing a centralized repository of biometric data on nearly a fifth of the world’s population has raised serious concerns among privacy advocates.

The government has also looked to Aadhaar data to underpin mobile payment transfer platforms, which have become crucial for cashless transactions during the country’s demonetization push over past year.

But constructing a centralized repository of biometric data on nearly a fifth of the world’s population has raised serious concerns among privacy advocates, who cite several vulnerabilities both with the Aadhaar system and the Modi administration’s planned expansion.

Despite this, recent metrics indicate that Aadhaar has been enormously successful in achieving those goals. Though the program is theoretically voluntary, more than 99% of Indian adults are now enrolled. Over three billion individual identity verifications have been conducted, and some reports indicate that the Indian government is saving a billion dollars per year now that welfare subsidies can be paid to citizens directly through Aadhaar-verified fund transfers.

Prime Minister Narendra Modi has ambitions to broaden the system even further, seeking to use Aadhaar as the gateway for accessing government programs ranging from public education to subsidized cooking gas, as well as partnering with private companies to offer services facilitated by the Aadhaar database.

Concerns, however, remain. One primary worry is that India’s legal framework for information security is still weak and fragmented, despite government assurances that Aadhaar biometrics have never been misused or stolen.

“There are no regulations in India on safeguards over and procedures for the collection, processing, storage, retention, access, disclosure, destruction, and anonymization of sensitive personal information by any service provider,” according to a 2016 World Bank report.

A patchwork of rules outlining “reasonable security practices and procedures” for personal data has accumulated since Aadhaar was launched, but there is no codified law outlining how data in the system must be secured, or what penalties exist for potential leaks, fraud or misuse.

“Imagine a situation where the police (are) secretly capturing the iris data of protesters and then identifying them through their biometric records” – Sunil Abraham, executive director of the Centre for Internet and Society in Bangalore

This regulatory gap poses a particularly acute risk now that the government has begun offering companies and app developers support for starting new businesses that use Aadhaar data. Through a new initiative called IndiaStack, the administration is providing open program interfaces for companies in fintech, healthcare, and other areas to integrate Aadhaar-based transactions into their business platforms. While IndiaStack’s terms of use explicitly state that user consent is required for any information sharing between service providers and the Aadhaar database, doubts remain about the integrity of the network infrastructure and the lack of clarity surrounding acceptable information sharing and storing protocols.

Another source of concern is the risk that Aadhaar information could be leveraged by the government itself for political purposes.

“Maintaining a central database is akin to getting the keys of every house in Delhi and storing them at a central police station,” Sunil Abraham, executive director of the Centre for Internet and Society in Bangalore, told Reuters. “It is very easy to capture iris data of any individual with the use of next generation cameras. Imagine a situation where the police (are) secretly capturing the iris data of protesters and then identifying them through their biometric records.”

Further stoking fears of federal overreach, the Modi administration has attempted to make Aadhaar registration mandatory in certain sectors, violating a Supreme Court ruling from October 2015 that enrollment must remain voluntary.

Still, the benefits of building on the Aadhaar identity system appear to be outweighing the risks for now, and the system is gathering momentum worldwide. The World Bank is helping market the Aadhaar model abroad, and Russia, Morocco, Tunisia, and Algeria have all expressed interest in instituting national biometric identity programs of their own. Microsoft is already on board, and Google is negotiating ways to get involved.

Aadhaar may indeed live up to is potential and become the global standard for universal legal identity, but until India can manage to create more robust mechanisms to protect citizens’ personal data, their security could remain uncertain.

For more details visit https://cis-india.org/internet-governance/news/one-world-indentity-kaelyn-lowmaster-march-17-2017-privacy-concerns-multiply-for-aadhaar-indias-national-biometric-identity-registry

No ID, no benefits: thousands could lose lifeline under India’s biometric scheme

praskrishna — 2017-03-22T14:27:25Z

Controversial Aadhaar card restricts fundamental rights, argue critics, limiting access to free school meals and exposing 1 billion people to privacy risks.

The article was published in the Guardian on March 21, 2017. Sumandro Chattapadhyay was quoted.

An Aadhaar biometric identity card, which will be mandatory for Indians to access many essential government services and benefits. Photograph: Bloomberg/Getty Images

Hundreds of thousands of people in India could be left without essential government services and benefits – including free school meals and uniforms, food subsidies and pensions – under new rules that make access to more than three dozen state-funded schemes conditional on showing identification.

Over the past month, citizens have been notified that they have to prove their identity with a biometric ID, known as an Aadhaar card, to be eligible to use various services. Booking railway tickets online, applying for some jobs, and getting fuel subsidies will also be dependent on showing the controversial card.

Aadhaar cards were introduced by the Indian government in 2009, and rolled out by prime minister Narendra Modi in 2014. They record personal biometric data, including fingerprints and eye scans, which the government says allows it to ensure that welfare services are being delivered to those who really need them, and saving billions of rupees by reducing welfare fraud.

The Unique Identification Authority of India (UIDAI), which oversees the Aadhaar programme, says that more than 1.13 billion people have been enrolled on an official database. But activists say that hundreds of thousands of Indians and migrants are still undocumented and could miss out on their fundamental rights because of the new rules.

“What if a Facebook account was necessary to log in to the internet, and what if Facebook was owned by the government of the US?” asked Sumandro Chattapadhyay, research director at the Centre for Internet and Society (CIS), a thinktank with offices in Bangalore and Delhi. “We are building a system that will decide whether a child will eat or not on an afternoon based on [the] quality of internet connectivity and cleanliness of the child’s thumbprint.”

Chattapadhyay argued that Aadhaar, which is effectively being forced upon Indians, and which is used increasingly by private companies, exposed more than a billion people to huge privacy risks.

“The Aadhaar ID is being connected to digital communications via sim card registration, it is being connected to financial transactions via bank accounts, and all Indian citizens are being forced to enrol for it against the threat of losing out from welfare services,” he said.

“The potential of unmonitored and unregulated use of such linked data by the private sector is massive. It does not matter if the Indian state will finally go ahead with implementing this system or not. The fact that [it] is considering such a system is scary enough.”

Nanu Bhasin, spokesperson at the ministry of women and child development, confirmed that the order to link Aadhaar to government schemes had come directly from the Modi government. “There are leakages in the system,” she said. “This will plug leakages.”

Bhasin said Aadhaar was now mandatory: “You have to take it, it is necessary. You cannot take the right to a benefit if you don’t have the Aadhaar card.”

She said she did not know if those who did not want to enrol in the scheme because of potential privacy risks would still be able to receive benefits. “You have bank accounts, there you give all your details, everything. Why make a fuss [about privacy] for Aadhaar?” she said.

One of the most contentious new rules introduced this month, and coming into force in July, requires children to show Aadhaar cards to get free school meals. The notice led to a media storm in India, where malnutrition rates are high and nearly 60 million children are underweight.

On 7 March the government said alternative forms of ID would be accepted for free school meals where people did not yet have Aadhaar cards, and urged schools and childcare centres to enrol all attendees.

Activists argue that setting any barriers to free school meals is unethical and unconstitutional. Ambarish Rai, national convenor of the Right to Education Forum, said: “This is a very insensitive decision of the government. How can you make it mandatory? It is a clear-cut violation of the Right to Education Act 2009.”

Compulsory identification could deter school attendance if children struggle to get free school meals or uniforms, said Swati Narayan, visiting research scholar from the LSE and food activist. “India’s school meal programme covers almost 100 million children – the largest in the world. Instead of creating unnecessary barriers, the focus should be on how to improve these modest meals by adding eggs, fruit and nutritious foods to the menu.”

Glitches in the Aadhaar system have already led to reports of people being unfairly denied government subsidies. In February, the news website Scroll recorded a number of people in the state of Jharkhand being denied rice subsidies because of problems with Aadhaar card machines.

The constitutional validity of the government’s new orders is currently being debated in court, with questions raised as to whether the Indian parliament can restrict fundamental rights enshrined in the constitution, and whether the government has the power to force citizens to enrol.

In 2015, a supreme court order had ruled that the scheme was purely voluntary, and that it could not become mandatory with a court ruling. But in 2016, parliament passed the Aadhaar Act, which allowed the government to require identification for government services.

Khagesh Jha, a lawyer and activist, argued that the act was fundamentally unconstitutional. “Rescued children, children who have been trafficked or those who have been forced into child labour – [you] can’t expect them to hold an Aadhaar card or documents like a birth certificate. Right to education is a fundamental right, and is protected by the core of the constitution. It cannot be challenged by any other document.”

UIDAI, the agency overseeing Aadhaar, issued a statement saying the government had made savings of more than 490bn rupees (£6bn) in the past two and a half years, thanks to schemes linking government benefits to Aadhaar. It added that during the past seven years, there had been no report of a breach or leak of residents’ data.

For more details visit https://cis-india.org/internet-governance/news/the-guardian-march-21-2017-no-id-no-benefits

EVMs: How transparent is the Indian election process?

praskrishna — 2017-03-17T01:57:19Z

Electronic Voting Machines (EVMs) have become a bone of contention after the results of the Assembly elections in five states were declared last Saturday and the BSP president Mayawati alleged tampering. The Congress party and the Aam Aadmi Party (AAP) have called for a probe into her allegation. Social media too is abuzz with messages and videos showing how the machines can be allegedly manipulated to sway the votes in favour of a particular candidate.

The article by Smriti Sharma Vasudeva was published in the Statesman on March 14, 2017. Pranesh Prakash was quoted.

Overnight, several videos on Whatsapp have surfaced wherein people can be seen explaining the "mechanism" on how to alter the votes polled for a candidate in another candidate's favour. Several similar posts and articles are doing the rounds on Facebook.

BBC added fuel to the fire when it shared a 2010 article on how 'US "Scientists" hack India Electronic Machines' . The article details how scientists at a US university say they have developed a technique to hack into Indian electronic voting machines. While the article was posted on the BBC website a day after the election results were declared, it drew considerable flak from users on Facebook who criticised the website for its 'irresponsible' act of sharing an article with a "click bait" headline just to grab eyeballs.

Amid all this frenzy, the Election Commission of India has issued statements clarifying how the entire process is transparent and fool proof and tampering with the EVMs is a far-fetched thing given the checks and balances in place. For instance, the EVMs undergo the process of randomisation wherein which machine will go to which constituency and to which booth is not known to anyone till the last moment. Similarly, before the polling starts, mock polling takes place in the presence of representatives of all the political parties and then each of these machines are tested and a satisfactory report is generated and only after that polling begins.

However, all these checks and balances still do not ensure a fool proof system if experts are to be believed.

Pranesh Prakash, Policy Director for The Centre for Internet and Society, a non-profit organisation that undertakes interdisciplinary research on internet and digital technologies from policy and academic perspectives, said: "The Electronic Voting Machines used in India are the simplest, with no large operating system requirements and are not networked. Thus, from a software design perspective, these are really good and the chances of these being tampered with are bleaker. However it doesn't mean these are fool proof. Most of the developed countries do not trust these machines and these are definitely not secure enough for democratic elections.

"While there are many advantages of using EVMs in the electoral process over the traditional ballot papers, still there are many ways in which one can tamper with these machines without any technical ingenuity. The best way is to make use of the EVMs and ensure that the Voter Verified Paper Audit Trail (VVPAT) are effectively utilised to make it an overall effective system".

Recently, the Supreme Court had mandated that VVPAT machines should be used in all the polls and thus the Election Commission had installed VVPAT machines in several constituencies. However, not sure of the efficacy of this system, the Election Commission had itself raised apprehensions regarding performance of the paper-trail machine, which gives a receipt to the voter, verifying the vote went in favour of the candidate against whose name the button was pressed on the electronic voting machine.a

For more details visit https://cis-india.org/internet-governance/news/the-statesman-smriti-sharma-vasudeva-march-14-2017-evms-how-transparent-is-the-indian-election-process

Nasscom chief saying full data protection isn’t possible should wake us from our digital slumber

praskrishna — 2017-03-17T01:47:25Z

Considering India is rapidly moving towards a digital economy, the hurdles not withstanding, data and identity security are topics which have to be taken very seriously. Since the demonetisation, a large part of the population who would never bother with digital transactions has suddenly come online. But there is no such thing as complete security of personal data, according to Nasscom chief R Chandrashekhar.

This was published by First Post on March 16, 2017. Pranesh Prakash was quoted.

Attending the World Consumer Rights Day, R Chandrashekhar said that personal data of online consumers cannot be completely secure and stressed on the need to have strict enforcement of consumer protection laws. Speaking to PTI, Chandrashekhar said, “More than 3 million credit card data details were misused recently. Let us face it, these kind of security breaches will take place. There is nothing called fully perfect security in IT.”

It’s high time we call a spade, a spade

R Chandrashekhar, President Nasscom. Image: PIB

Coming from the head of Nasscom, this announcement pertaining to security is very important. According to Chandrashekhar one cannot expect complete cyber security, but there are definitely ways in which such attacks and incidents can be minimised. He very rightly said that that protecting the online consumer data, specially looking at how rapidly e-commerce is growing in the country, is of prime importance.

One cannot help but agree with Chandrashekhar, specially considering the fact India does not have a privacy law ecosystem that is present in countries such as the US and the UK, where online consumer protection is taken very seriously. Germany and other EU nations have always been at the forefront, when it comes to protecting data privacy, and it has ensured that consumer-facing technology companies do not run roughshod when it comes to protecting user data.

Chandrashekhar stated that there was no need for separate regulations for e-commerce sites, but the priority was ensuring means to enforce consumer laws in the digital world.

Lack of dedicated privacy laws

According to cyberlaw and cybersecurity expert, Pavan Duggal, “Going forward, there is an urgent need for India to take a strong view on privacy in terms of legislative frameworks. Unfortunately, at the time of writing, India does not have a dedicated law on privacy.”

Image: Foamy Media

Social media websites for instance have a lot of user data. But what happens when they suddenly change their privacy policies? For instance, a lot of users signed on to WhatsApp when it was an independent company. But post the Facebook acquisition, there have been a lot of instances where WhatsApp has updated its terms and conditions to suit its parent Facebook.

That’s not completely illegal one may say. Loss of privacy is a price you pay for free services. But what if, I as a consumer of WhatsApp do not want the app to share any of my data with Facebook? The only option I am left with is to delete WhatsApp. But then again, I do not know if my data is also deleted from WhatsApp servers or it has already been shared. Social media apps, only let you know what updates are being added. Consent is only required to update the app. You can stall that, up to a point. But there will come a time when you will have to update an app. Then by default you have given approval to all the terms and conditions associated with the app.

Two students had challenged WhatsApp’s revision to its privacy policy before Delhi High Court. The Court dismissed the petition insisting that users could opt out by deleting their accounts.

When a similar challenge was mounted before the authorities in UK, Facebook had to put a pause on their data sharing – and this was because of its strong data protection policy. Under the UK data protection law, the company has to inform the authority established under the Act of any changes in the use of user data. In the case of WhatsApp, the UK authority objected to such sharing.

Aadhaar – the 12-digit biometric storehouse

Aadhaar card is being used for many financial and non financial transactions. Also the Aadhaar number associated with an individual also holds a lot of personal and biometric data. So when recently, there was news about a possible Aadhaar data breach when UIDAI filed a police complaint against Axis Bank, business correspondent Suvidhaa Infoserve and e-sign provider eMudhra, it was naturally a shock to many.

Unlike a password which can be changed, with biometric information there is no scope to do that if it is compromised. Although UIDAI claims that there are multiple levels of security and firewalls to ensure there is no breach of Aadhaar information of an individual, one can only hope that it is robust enough to withstand any attack. Collection of biometric data by the government to form a database, for instance, was debated and ultimately not used in the UK.

Pranesh Prakash, policy director of the Centre for Internet and Society, expressed concern about the pace at which we are progressing when it comes to having a legal and regulatory framework when it comes to the Digital India push. “While the security architecture of Aadhaar Enabled Payment Systems (AEPS) might in itself be good, the idea of providing your fingerprints to merchants for financial transactions is a terrible idea since that is like asking you to give your bank password to a merchant, and the merchant can reuse that password, and you can’t ever change the password,” said Prakash.

Enforcing the correct processes

Last year, a malware affected the systems of Hitachi Payment Services, which provides back end services to ATM machines and Point of Sale nodes across India. As a result of this, around 32 lakh debit cards were compromised including those issued by SBI, HDFC, Yes Bank, Axis, BOB and ICICI. Security experts and consultants have pointed out various holes in the electronic transaction systems in place in India. Intel has also warned that ATM machines in India are vulnerable to malicious attacks. Intel points out that countries in the Asia Pacific region are developing and are particularly vulnerable because of old systems and machines being used.

Image: REUTERS/Amit Dave

According to Mahesh Patel, president and group CTO, AGS Transact Technologies this was more of a governance issue of the data centre than any technical error. “It is not about the software, but it is about the processes and procedures you put in place to ensure that the system is secure. Everything from physical security to computing security to admin management, etc should be process driven. So somewhere there could have been a weak link there. Cloud has to be secure and encrypted which suffices the use case of payments. This cloud is different from the ones used by e-commerce sites to display all their products,” said Patel.

We may have the best of software and security measures, but ensuring that they are implemented the right way is equally important. Plugging the loopholes in current regulations is also important.

Existing laws and regulations, not enough

According to Duggal, “The Information Technology Act, 2000 hardly has effective provisions to protect any data and personal privacy in the digital ecosystem. The Indian Government needs to come up with strong privacy law which can protect both personal privacy and data privacy in an effective manner.”

One may find it really shocking to hear the head of Nasscom saying something to the extent that full data protection for online consumers is not possible, but there is definitely truth to the matter. It will require concerted efforts from not only regulators, governments, digital wallet players and banking industry to come up with these privacy laws, but also you the consumer has to ensure that you are aware of the dangers lurking in the digital world. Educating oneself of the various ways in which your data can be compromised is a good way to protect your online self.

Because, let’s face it, for all practical purposes if you are online, your privacy is dead.

For more details visit https://cis-india.org/internet-governance/news/first-post-march-16-nimish-sawant-nasscom-chief-saying-full-data-protection-isnt-possible-should-wake-us-from-our-digital-slumber