Crime and Security in Age of NFTs: Emerging Challenges
Dr JM Vyas & Dr Naveen Kumar Chaudhary
AS THE WORLD rapidly expand itself into the digital era, technological advancements such as non-fungible tokens (NFTs), artificial intelligence (AI), and the metaverse have revolutionized various aspects of society, including the art and collectible market, commerce, and communication. While these innovations bring immense opportunities and benefits, they also pose unprecedented challenges in terms of crime and security. Artificial Intelligence platforms are collecting and processing large amount of data thereby raising serious privacy concerns. With the skyrocketing use of non-Fungible Tokens (NFTs), the malicious NFTs scams aimed at deceiving and stealing user’s funds from their digital wallets has seen upward trend. Metaverse is still in its relative infancy but the consumers need to understand the security and privacy safeguards that platform enabler provide. The complexity of Cyber threat landscape has increased and there is a need for higher level collaboration between Industries, Academia, and Government through regional and international initiatives. To address these emerging challenges for fostering a secure and trustworthy cyber space, the Ministry of Home Affairs is hosting G20 Conference on “Crime and Security in the age of NFTs, AI and Metaverse” on July 13-14 in Gurugram, Haryana.
NFTs: Transforming the Market and Expanding Criminal Possibilities
Since 2014, Non-fungible tokens have revolutionized the art market, enabling digital ownership and provenance verification for digital assets. The NFT market is projected to reach nearly $20 billion by 2028. However, this revolutionary technology also presents new gateways for criminal activities. Counterfeit NFTs, unauthorized duplication, and copyright infringement have become significant concerns in the realm of digital art. Furthermore, the anonymity associated with crypto currencies used in NFT transactions can facilitate money laundering, tax evasion, and illegal financing. Other than this, securities issue and vulnerabilities present in NFT platform can lead to a sophisticated cyber-attack leading to huge financial as well as reputation loss. There is a need to establish robust regulatory frameworks, strengthen the Law Enforcement Agencies and promote International Cooperation and collaboration among the G20 nations to ensure the authenticity and legality of NFT transactions while safeguarding the interests of the stakeholders.
Artificial Intelligence: A Double-Edged Sword in Crime and Security
The proliferation of Artificial Intelligence (AI) has unlocked transformative possibilities across various industries. Artificial intelligence has emerged as a powerful tool across various domains, including cyber security, law enforcement agencies, and predictive market, weather analysis. However, AI can be exploited by cybercriminals to perpetrate sophisticated cyber-attacks and launch AI-driven fraud schemes. The impact of Artificial Intelligence extends beyond positive advancements, encompassing negative consequences as well. There has been a rising trend among criminals who exploit AI to carry out intricate cyber-attacks, commit identity theft, and propagate disinformation. AI-Powered malware, APTs, DDOS, Deep fake technology are few examples of AI based cyber security attacks; it certainly poses a significant threat to personal privacy, trust, and the integrity of digital content. In this era of AI, it is imperative for G20 nations to give precedence to cyber security measures, foster global collaboration, and allocate resources for research to proactively address emerging threats. The establishment of ethical frameworks for the development and implementation of AI will guarantee responsible usage and mitigate the risks associated with AI-enabled criminal activities.
Strengthening AI governance, encouraging responsible AI development, and enhancing AI-driven threat detection mechanisms are crucial steps in ensuring a secure digital ecosystem.
The Metaverse: An Expanding Virtual Landscape and its Security Implications
The metaverse represents an interconnected virtual world that blurs the boundaries between physical and digital realities. It offers huge potential for businesses, social culture and interactions, and entertainment. But everything comes with a price and risks associated. Virtual identity theft, phishing scams, and virtual asset theft are potential threats within this immersive environment. Moreover, the metaverse's decentralized nature can complicate law enforcement efforts, necessitating enhanced collaboration between governments, technology companies, and cyber security experts. Developing robust security standards, promoting user education, and implementing effective regulatory frameworks will be instrumental in preventing cybercrime and ensuring a safe metaverse experience.
As technology continues to reshape our world, the G20 nations need to work proactively to address the challenges posed by NFTs, AI, and the Metaverse in the context of crime and security in collaboration with Industry, Academia, Government and Subject Matter Experts. Through international cooperation, robust regulatory measures, technological innovations, and public awareness campaigns, the transformative power of NFTs, AI, and the Metaverse can be harnessed while safeguarding the interests of individuals, businesses, and societies at large. A focused Research and Development approach on the Cyber security vertical of these emerging technologies in-line with regulatory framework will go a long way in creating Cyber-safe ecosystem and boost adoption of these technologies at every level. The underlying aim should be to harness the immense potential of these ground breaking technologies while safeguarding our societies from the emerging risks.
(Dr JM Vyas, Vice Chancellor, NFSU, and Dr Naveen Kumar Chaudhary, Dean School of Cyber Security & Digital Forensics, Gandhinagar, Gujarat)
# Views expressed are personal.
August 01 2023