Canada-India Track 1.5 Dialogue Paper No. 2 Partnering for Prosperity: India-Canada Collaboration to Curb Digital Black Markets Sameer Patil Canada-India Track 1.5 Dialogue Paper No. 2 Partnering for Prosperity: India-Canada Collaboration to Curb Digital Black Markets Sameer Patil CIGI Masthead Gateway House Masthead Executive Executive Board President Rohinton P. Medhora Director,Gateway House: Indian Council on Global Relations Neelam Deo Deputy Director, International Intellectual Property Law and Innovation Bassem Awad President, Human Resources, After-Market & Corporate Services & Member, Chief Financial Officer and Director of Operations Shelley Boettger Group Executive Board, Mahindra and Mahindra Ltd. Rajeev Dubey Director of the Global Economy Program Robert Fay President & CEO, The Indian Music Industry Blaise Fernandes Director of the International Law Research Program Oonagh Fitzgerald Executive Director, Morgan Stanley Investment Management Amay Hattangadi Director of the Global Security & Politics Program Fen Osler Hampson Non-Executive Director, Tata Sons Ishaat Hussain Director of Human Resources Laura Kacur Director,Gateway House: Indian Council on Global Relations Satish Kamat Deputy Director, International Environmental Law Silvia Maciunas Executive Director, Gateway House: Indian Council on Global Deputy Director, International Economic Law Hugo Perezcano Díaz Relations Manjeet Kripalani Director, Evaluation and Partnerships Erica Shaw Founding Partner,AZB & Partners Bahram Vakil Managing Director and General Counsel Aaron Shull Director of Communications and Digital Media Spencer Tripp Advisory Board Senior Advisor, Morgan Stanley Investment Management Luis Miranda Publications Chief Risk Officer, Mahindra and Mahindra Ltd. 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Centre for International Governance Innovation and CIGI are registered trademarks. 67 Erb Street West Cecil Court, 3rd floor, Next to Regal Cinema, Waterloo, ON, Canada N2L 6C2 Colaba, Mumbai – 400 005, www.cigionline.org India Table of Contents vi About the Author vii About the Project vii Acronyms and Abbreviations 1 Executive Summary 1 Introduction 2 Digital Black Markets: The Internet’s Murky Alleys 5 Cracking Down on Digital Black Markets and Securing Cyberspace 6 Tackling Black Markets through India- Canada Digital Security Cooperation 8 Conclusion 9 Appendix 15 Works Cited 18 About CIGI 18 À propos du CIGI About the Author Sameer Patil is a fellow, National Security Studies and director of the Centre for International Security at Gateway House. His research focuses on cyber security, maritime security and counter-terrorism. Sameer previously served in the National Security Council Secretariat within the Indian Prime Minister’s Office, where he focused on counter-terrorism and regional security. He is also a dissertation advisor at the Indian Naval War College. vi Canada-India Track 1.5 Dialogue Paper No. 2 • Sameer Patil About the Project Acronyms and The Canada-India Track 1.5 Dialogue on Innovation, Abbreviations Growth and Prosperity is a three-year initiative between the Centre for International Governance ATT Arms Trade Treaty Innovation (CIGI) and Gateway House: Indian Council on Global Relations, to explore areas Europol European Union Agency for Law for closer cooperation. Experts, government Enforcement Cooperation officials and business leaders will convene FBI Federal Bureau of Investigation annually to promote bilateral economic growth and innovation in today’s digital economy. G20 Group of Twenty Canada and India maintain strong bilateral I2P Invisible Internet Project relations built on the foundation of shared values and healthy economic ties. Economic I4C Indian Cyber Crime exchanges between Canada and India are on Coordination Centre an upward trajectory, but there continue to be unexplored areas for mutually beneficial Interpol International Criminal growth, especially in light of rapid developments Police Organization in technology that are changing every facet IP internet protocol of the economy and society in both countries. To address these challenges, the partnership IRC internet relay chat is helping to develop policy recommendations to promote innovation and navigate shared ISP internet service provider governance issues that are integral to the continued growth of Canada-India bilateral relations. NCCC National Cyber Coordination Centre The Canada-India Track 1.5 Dialogue on Innovation, OECD Organisation for Economic Growth and Prosperity strives to build closer Co-operation and Development ties between Canada and India and nurture P2P peer-to-peer the relationship to its full potential. Canada and India can be global leaders in innovation, PGP pretty good privacy and the Canada-India Track 1.5 Dialogue seeks opportunities to work jointly on multilateral PIPEDA Personal Information Protection issues and identify areas where improved and Electronic Documents Act cooperation could benefit both countries. RCMP Royal Canadian Mounted Police In addition to its focus on innovation, the partnership examines topics such TOR The Onion Router as collaboration on research and higher VPN virtual private network education, promotion of Canada-India trade and investment, energy cooperation and issues pertaining to global governance. Through this partnership, Canada and India can be intellectual partners and cooperate in the design of their global governance frameworks. Partnering for Prosperity: India-Canada Collaboration to Curb Digital Black Markets vii Executive Summary Introduction When Canadian Prime Minister Justin Trudeau In recent years, India and Canada have seen visited India in February 2018, the two countries unprecedented growth in ties across all sectors. agreed to extend their cooperation on security Their bilateral security cooperation, however, issues to cover cyberspace, with a specific focus has not kept pace with emerging cyber threats. on cybercrime. The two countries face multiple Ottawa and New Delhi are well-positioned to common cyber security challenges. Digital black advance their security cooperation to focus markets, where contraband and illegal services are on the growing problem. Annual security bought and sold, pose an emerging threat. Using dialogues and a counter-terrorism working advanced security features to remain anonymous, group already provide useful platforms for hackers, organized criminal networks and terrorist the countries’ respective national security groups use these sites, also known as the “dark establishments to share assessments of a range net marketplaces,” as force multiplier for their of security threats. The consensus to step up illicit activities. In the case of India and Canada, cyber cooperation with a focus on fighting these markets have abetted drug smuggling, cybercrimes in bilateral and multilateral forums, facilitated cybercrimes and contributed to terrorist achieved during Prime Minister Justin Trudeau’s activities. Despite frequent security crackdowns, India visit in early 2018, provides a foundation these marketplaces have proved to be resilient. for even closer collaboration (India 2018b). India and Canada have implemented multiple Although they are heterogeneous democracies steps domestically to address the growing threats. and their economies have achieved different levels Canada has participated in multiple crackdowns of digitalization, India and Canada face multiple against the digital black markets. India, however, common cyber-security challenges, including: lacks a comprehensive understanding of this illicit activity. Both countries have an opportunity to → cybercrime and data breaches; deepen their security cooperation by collaborating → critical infrastructure protection; to tackle these markets. They can work bilaterally to track the encryption technologies, encourage → cyber-enabled espionage; informal collaboration between their respective law enforcement agencies, work with private → securing election systems from sabotage; and stakeholders (such as cryptocurrency exchanges) and move to discredit these marketplaces. → misuse of cyberspace by terrorists At the multilateral level, the two countries and extremists. can contribute to international security and For India and Canada, an emerging concern cyberspace stability by building the capacity