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India plans to change its financial landscape as the Reserve Bank of India (RBI) brings new security measures for all electronic payments. The new rules take effect on 1 April 2026. Every digital payment will be verified through a compulsory two-factor authentication process. The new rule aims to address the growing number of cybercrimes and phishing campaigns that have infiltrated India’s mobile wallets and UPI. Traditionally, security relied on text messages, but now, it has started adopting a versatile security model. The regulators are trying to stay ahead of threat actors and scammers.
The new directive mandates that at least one of the two authentication factors must be dynamic. The authentication has to be generated particularly for a single transaction and cannot be used twice. Fintech providers and banks can now freely choose from a variety of ways, such as hardware tokens, biometrics, and device binding. This shift highlights a departure from the traditional era, where OTPs via SMS were the main line of defence.
To make security convenient, banks will follow a risk-based approach.
Low-risk: Payments from authorized devices or standard small transactions will be quick and seamless.
High-risk: Big payments or transactions from new devices may prompt further authentication steps.
The framework with “RBI’s new digital payment security controls coming into force represent a significant recalibration of India’s authentication framework – from a prescriptive OTP-based regime to a more principle-driven, risk-based standard,” experts said.
The RBI no longer manages the particular technology used for verification. Currently, it focuses more on the security of the outcome.
The technology-neutral stance permits financial institutions to use sophisticated solutions like passkeys or facial recognition without requiring frequent regulatory notifications. The central bank will follow the principle-driven practice by boosting innovation while holding strict compliance. According to experts, “By recognising biometrics, device-binding and adaptive authentication, RBI has created interpretive flexibility for regulated entities, while retaining supervisory oversight through outcome-based compliance.”
The RBI has increased accountability standards, making banks and payment companies more accountable for maintaining safe systems.
Institutions may be obliged to reimburse users in situations when fraud results from system malfunctions or errors, which could expedite the resolution of grievances.
The goal of these regulations is to expedite the resolution of complaints pertaining to fraud.
Malware that can automatically spread between systems, commonly referred to as worms, has long been a recurring threat in cybersecurity. What makes the latest campaign unusual is not just its ability to propagate, but the decision by its operators to deliberately destroy systems in a specific region. In this case, machines located in Iran are being targeted for complete data erasure, alongside the use of an unconventional control architecture.
The activity has been linked to a relatively new group known as TeamPCP. The group first appeared in reporting late last year after compromising widely used infrastructure tools such as Docker, Kubernetes, Redis, and Next.js. Its earlier operations appeared focused on assembling a large network of compromised systems that could function as proxies. Such infrastructure is typically valuable for conducting ransomware attacks, extortion campaigns, or other financially driven operations, either by the group itself or by third parties.
The latest version of its malware, referred to as CanisterWorm, introduces behavior that diverges from this profit-oriented pattern. Once inside a system, the malware checks the device’s configured time zone to infer its geographic location. If the system is identified as being in Iran, the malware immediately executes destructive commands. In Kubernetes environments, this results in the deletion of all nodes within a cluster, effectively dismantling the entire deployment. On standard virtual machines, the malware runs a command that recursively deletes all files on the system, leaving it unusable. If the system is not located in Iran, the malware continues to operate as a traditional worm, maintaining persistence and spreading further.
The decision to destroy infected machines has raised questions among researchers, as disabling systems reduces their value for sustained exploitation. In comments reported by KrebsOnSecurity, Charlie Eriksen of Aikido Security suggested that the action may be intended as a demonstration of capability rather than a financially motivated move. He also indicated that the group may have access to a much larger pool of compromised systems than those directly impacted in this campaign.
The attack chain appears to have begun over a recent weekend, starting with the compromise of Trivy, an open-source vulnerability scanning tool frequently used in software development pipelines. By gaining access to publishing credentials associated with Node.js packages that depend on Trivy, the attackers were able to inject malicious code into the npm ecosystem. This allowed the malware to spread further as developers unknowingly installed compromised packages. Once executed, the malware deployed multiple background processes designed to resemble legitimate system services, reducing the likelihood of detection.
A key technical aspect of this campaign lies in how it is controlled. Instead of relying on conventional command-and-control servers, the operators used a decentralized approach by hosting instructions on the Internet Computer Project. Specifically, they utilized a canister, which functions as a smart contract containing both executable code and stored data. Because this infrastructure is distributed across a blockchain network, it is significantly more resistant to disruption than traditional centralized servers.
The Internet Computer Project operates differently from widely known blockchain systems such as Bitcoin or Ethereum. Participation requires node operators to undergo identity verification and provide substantial computing resources. Estimates suggest the network includes around 1,400 machines, with roughly half actively participating at any given time, distributed across more than 100 providers in 34 countries.
The platform’s governance model adds another layer of complexity. Canisters are typically controlled only by their creators, and while the network allows reports of malicious use, any action to disable such components requires a vote with a high approval threshold. This structure is designed to prevent arbitrary or politically motivated shutdowns, but it also makes rapid response to abuse more difficult.
Following public disclosure of the campaign, there are indications that the malicious canister may have been temporarily disabled by its operators. However, due to the design of the system, it can be reactivated at any time. As a result, the most effective defensive measure currently available is to block network-level access to the associated infrastructure.
This campaign reflects a convergence of several developing threat trends. It combines a software supply chain compromise through npm packages, selective targeting based on inferred geographic location, and the use of decentralized technologies for operational control. Together, these elements underline how attackers are expanding both their technical methods and their strategic objectives, increasing the complexity of detection and response for organizations worldwide.