75 Days Mains Revision Plan 2024 – Internal Security
Internal Security
Q1. Trade-based money laundering poses a significant threat to India’s economy and security, having a direct linkage with organized crime and terrorism. Elaborate. (10M)
Key Demand of the Question: To analyze the threat posed by trade-based money laundering (TBML) to India’s economy and security, emphasizing its connection to organized crime and terrorism.
Structure of the Answer:
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Introduction: Introduce the concept of TBML and its relevance in disguising illicit funds within legitimate trade transactions.
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Body:
- Threat to India’s Economy:
- Distorted Economic Indicators: Discuss how TBML can lead to inaccurate trade data, complicating economic policy-making.
- Impact on Legitimate Businesses: Explain how TBML creates unfair competition, undermining market integrity.
- Market Disruption: Explore the potential market instability caused by the integration of illicit funds.
- Deterrence of Foreign Investment: Analyze how persistent TBML activities deter foreign investors, affecting economic growth.
- Contribution to Unemployment and Inequality: Discuss how TBML diverts resources away from social welfare, exacerbating economic inequality.
- Threat to National Security:
- Linkage with Organized Crime: Highlight how TBML facilitates organized crime networks, such as drug trafficking and arms trade.
- Funding Terrorism: Examine how TBML serves as a mechanism for terrorists to finance their activities, posing a direct threat to national security.
- Destabilization of Regions: Discuss the potential destabilization of regions due to the integration of illicit funds.
- Undermining State Authority: Explain how persistent TBML activities undermine government authority and law enforcement.
- Policy Recommendations: Summarize the 6Cs approach recommended by FICCI to combat TBML and mitigate its effects.
- Threat to India’s Economy:
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Conclusion: Reiterate the significant threat posed by TBML to India’s economy and security, emphasizing the need for robust policy measures and international cooperation.
Introduction :
Trade-based money laundering (TBML) is a sophisticated method used by individuals and organizations to disguise the origins of illicit funds through international trade transactions. In TBML, the movement of money is obscured within the complexities of legitimate trade activities, making it challenging for authorities to trace and identify the illicit financial flows.
Threat to India’s economy :
Based on UNDOC estimates, when the Indian economy surpassed the $3 trillion mark in 2021, the quantum of money laundering in India can be estimated at $159 billion which is around 5 per cent of GDP.
1.Distort Economic Indicators: TBML can lead to inaccurate trade data, distorting economic indicators and making it challenging for policymakers to formulate effective economic strategies.
2.Impact on Legitimate Businesses: Legitimate businesses may face unfair competition from entities engaged in TBML affecting market integrity.
3.Potential for Market Disruption: The integration of illicit funds into legitimate trade can disrupt markets, leading to unpredictable economic consequences and undermining investor confidence.
4.Deter Foreign Investment : Persistent TBML activities may deter foreign investors who may be concerned about the integrity of financial systems hindering economic growth and development.
5.Unemployment and Economic Inequality:The negative economic impacts of TBML can contribute to unemployment and economic inequality, as resources that could be directed toward social welfare or infrastructure are diverted for illicit purposes.
Threat to National security : Linkage with organised crimes and Terrorism
1.Organized Crime Networks: TBML facilitates organized crime networks including drug trafficking, human smuggling, and arms trade etc, in legitimizing their proceeds through seemingly legitimate trade transactions.
- Taliban’s opium trade in Afghanistan .
2.Funding Terrorism: TBML provides a mechanism for terrorists to conceal the sources of their funding by integrating illicit funds with legitimate trade activities.The funds derived from TBML can be channeled to finance extremist activities, posing a direct threat to national security.
- Counterfeiting of national currency in Jammu and Kashmir .
3.Destabilization of Regions: The integration of illicit funds into the economy can create environments conducive to criminal and terrorist activities.
4.Undermining State Authority : Persistent TBML undermines the authority of the state and challenges the ability of governments to maintain law and order.
5.Coordinated Attacks : Funds derived from TBML may be utilized for coordinated attacks, creating security challenges for the nation and its citizens.
The FICCI study suggests 6Cs as a policy recommendation and way forward to tackle the problem.
- Cognisance of terrorism and organized crime under a regulatory framework.
- Continuous and critical evaluation of illicit financial flows.
- Central nodal agency for greater coordination
- Creating awareness and changing consumer preferences
- Combating trade-based money laundering
- Cooperation and coordination at international level.
Conclusion :
“No Money for Terror” conference was started in 2018, as an initiative of the French government, to specifically focus on cooperation between countries to choke terror funding. India has persistently used the platform to stress that the international community should never ignore terrorists’ safe havens or their resources.
Q2. The landscape of cyber threats has expanded and mutated, making it increasingly vital for individuals, organizations, and governments to stay ahead of the curve in safeguarding digital assets. Discuss. (15M)
Key Demand of the Question: To discuss the evolving nature of cyber threats and the importance of proactive measures in protecting digital assets at individual, organizational, and governmental levels.
Structure of the Answer:
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Introduction: Introduce the concept of cyber threats, emphasizing their dynamic and evolving nature in the digital age.
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Body:
- Expanding and Mutating Cyber Threats:
- Advanced Persistent Threats (APTs): Describe how APTs involve prolonged and targeted attacks, often state-sponsored.
- Ransomware and Malware: Discuss the increasing prevalence of ransomware and other malicious software attacks.
- Phishing and Social Engineering: Explain the evolution of phishing tactics and their impact on individuals and organizations.
- Critical Infrastructure Attacks: Highlight the growing threat to critical infrastructure, such as energy grids and healthcare systems.
- State-Sponsored Cyber Operations: Discuss the role of nation-states in cyber espionage and disruption.
- Significance of Staying Ahead in Cybersecurity:
- Individuals: Emphasize the need for individuals to protect personal data and privacy, and prevent financial losses.
- Organizations: Discuss the importance of safeguarding intellectual property, preventing business disruptions, and complying with legal obligations.
- Governments: Explain the need for governments to protect critical infrastructure, maintain national security, and ensure the integrity of public services.
- Way Forward:
- Budgetary Provision: Discuss the importance of allocating sufficient resources for cybersecurity.
- Awareness and Training: Highlight the need for regular awareness campaigns and training programs.
- Policy and Governance: Emphasize the need for robust cybersecurity policies and governance frameworks.
- International Collaboration: Discuss the importance of international cooperation in combating cyber threats.
- Research, Skilling, and Modernization: Advocate for investment in research, skill development, and modernization of cybersecurity infrastructure.
- Crisis Management: Stress the importance of preparing for cyber crises through simulations and drills.
- Expanding and Mutating Cyber Threats:
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Conclusion: Summarize the need for proactive measures to address the expanding landscape of cyber threats, ensuring the protection of digital assets across all levels of society.
Introduction
The evolving landscape of cyber threats has become a pervasive and dynamic challenge, necessitating constant vigilance and proactive measures from individuals, organizations, and governments. As digital assets play an increasingly integral role in modern societies, staying ahead of the curve in cybersecurity is imperative to thwart the mutating and expanding nature of cyber threats.
Body:
Expanding and Mutating Cyber Threats:
- Advanced Persistent Threats (APTs): Cybercriminals, often state-sponsored, employ sophisticated techniques such as APTs to compromise systems over an extended period, making detection challenging.
- Ransomware and Malware: The proliferation of ransomware attacks, where malicious software encrypts data until a ransom is paid, highlights the diversity of attack vectors used by cybercriminals.
- g. WannaCry Ransomware attack.
- Phishing: Social engineering techniques, particularly phishing, continue to evolve, deceiving individuals into divulging sensitive information or installing malware.
- g. The 2019 Wipro phishing attack
- Critical Infrastructure Attacks: Cyber threats have expanded to include attacks on critical infrastructure, including energy grids, healthcare systems, and financial institutions, posing significant risks to national security.
- for instance, RedEcho campaign that caused a power outage in Mumbai.
- State-Sponsored Cyber Operations: Nation-states increasingly engage in cyber operations, utilizing cyber tools for espionage, influence campaigns, and disruption of adversaries’ digital infrastructure.
- g. India banning Chinese mobile applications.
Significance of staying ahead in the cybersecurity:
- Individuals:
- Protection of Personal Data: Staying ahead in cybersecurity allows individuals to protect their personal data from theft, unauthorized access, and misuse.
- E.g. Digital personal data protection act, 2023.
- Preservation of Privacy: This includes preventing unauthorized access to personal devices, securing communication channels, and mitigating the risk of intrusive cyber-attacks, such as hacking of smartphones or computers.
- Prevention of Financial Loss: Individuals who stay ahead in cybersecurity are better equipped to recognize and thwart online scams, phishing attempts, and financial fraud.
- Protection of Personal Data: Staying ahead in cybersecurity allows individuals to protect their personal data from theft, unauthorized access, and misuse.
- Private companies:
- To Avoid intellectual property theft, espionage, and supply chain attacks that undercut integrity of systems and steal sensitive design/operational data.
- To Prevent business disruption and revenue losses due to ransomware or other attacks crippling productivity by denying access to business critical systems and data
- To limit legal, regulatory and contractual liabilities that arise when customer/partner data is compromised in an attack due to security shortcomings
- Governments:
- To safeguard military, law enforcement and intelligence agency operations which now rely on digital systems from advanced cyberattacks by foreign adversaries
- To keep critical infrastructure like power grids, air traffic control etc. safe as their access or manipulation in conflict can cripple governance capacities
- To maintain citizen trust and prevent fraud/leakage in welfare delivery systems and e-governance initiatives as more public services go digital.
Way forward:
- Budgetary provision – According to Rajesh Pant committee, a minimum allocation of 25% of the annual budget, which can be raised upto 1% has been recommended to be set aside for cyber security.
- Awareness: Government and Private organisation should conduct a periodic awareness campaign to aware people about cyber security threats.
- Policy and Governance: A robust and effective policy is the need of the hour. Further, duties and responsibilities should be defined clearly for smooth functioning and better coordination among departments and stakeholders.
- Collaborating with international partners: India can sign agreements with other like-minded countries and international organizations to share information and best practices on cyber defense, and to jointly combat cyber threats.
- Research, skilling and modernisation: investing in modernisation and digitisation of ICT, setting up a short and long term agenda for cyber security via outcome-based programs and providing investments in deep-tech cyber security innovation.
- Also creating a ‘cyber security services’ with cadres chosen from the Indian Engineering Services can be way forward.
- Crisis management: For adequate preparation to handle crisis, the Data Security Council of India (DSCI) recommends holding cybersecurity drills which include real-life scenarios with their ramifications. In critical sectors, simulation exercises for cross-border scenarios must be held on an inter-country basis.
Conclusion
The ability to adapt to the evolving threat landscape is paramount to safeguarding digital assets and preserving the integrity of the increasingly interconnected global digital environment.
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