How the Digital Age Impacts Law and New Forms of Cybercrime

*Writer: Beatriz Borges The digital age has brought about a profound transformation in all spheres of society, especially in social, economic, and legal relations. The emergence of new technologies, such as

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December 02, 2024

*Writer: Beatriz Borges

The digital age has brought about a profound transformation in all spheres of society, especially in social, economic, and legal relations. The emergence of new technologies, such as artificial intelligence (AI) and crypto-assets (like cryptocurrencies and NFTs), has broadened the horizon of innovations and, at the same time, presented new challenges for the law. 

With rapid technological evolution, in addition to the need to regulate the relationships created by these innovations, new types of cybercrimes have emerged, demanding that the legal system adapt quickly to regulate this new scenario and protect the rights of citizens.

This article will address how the digital age has impacted the law, exploring new forms of cybercrime and the fundamental role of constantly adapting legislation to address these threats. We will also discuss how the growth of emerging technologies, such as AI, cryptocurrencies, and NFTs, challenges the law's ability to regulate and punish illicit activities in the digital world.

1. The Impact of the Digital Age on Law

The digital age has significantly changed the world we live in, and the law is not immune to these transformations. Before the technological revolution, legislation was developed to deal with physical crimes, focusing on tangible assets such as property, money, and documents. However, the digitization of relationships has brought to light new legal assets to be protected, such as personal data, sensitive information, and digital assets.

The law has begun to deal with crimes that occur in an immaterial environment—cyberspace—requiring rapid adaptations of laws and new investigative approaches. The emergence of cybercrimes, such as hacking, data theft, and digital fraud, has changed how authorities and the legal system operate. Furthermore, the globalization of the digital world creates an additional challenge: crimes committed via the internet often involve multiple jurisdictions, complicating the investigation and prosecution of these offenses.

An important example of the movement of Law to try to keep up with this new era was the approval of laws such as the Marco Civil da Internet (Law No. 12.965/2014), which establishes principles, guarantees and rights for the use of the internet in Brazil. This legislation was pioneering in establishing guidelines on responsibility and privacy in the digital environment, being an initial step in adapting the Law to the digital age.

2. New Forms of Cybercrime

Cybercrimes can be described as "any type of illegal act committed through digital means or in digital media". 

With the growing dependence on technology, new types of crime have emerged, requiring the law to provide an appropriate response to regulate and punish those responsible for these illegal activities. Below, we explore some of the main types of cybercrime.

2.1. Hacking and Data Theft

Hacker attacks are the most well-known form of cybercrime. Intrusions into computer systems aim to steal, modify, or expose sensitive data from companies and individuals. This includes everything from accessing email accounts to hacking into large corporate databases, resulting in the compromise of personal information, passwords, and financial data.

The breach of personal data is also one of the most significant concerns of the General Data Protection Law (LGPD), which came into effect in Brazil in 2020, and therefore, this is one of the main norms of the national legal system aimed at guaranteeing the protection of online user data. 

The LGPD establishes rules regarding the collection, storage, and sharing of personal data, and provides for sanctions for companies that fail to ensure adequate protection of this information.

2.2. Electronic Fraud

Another recurring cybercrime is electronic fraud, which includes practices such as phishing, social engineering, and identity theft. These frauds use deceptive methods to induce victims to provide sensitive information, such as credit card numbers or bank account access credentials, and can occur in various ways, such as through fake emails or even by manipulating the victim through social media.

The rise of e-commerce and the use of digital platforms for financial transactions have facilitated the spread of this type of crime. The Brazilian Penal Code, through article 171, already has a specific classification for fraud committed through electronic means. However, investigations to detect and prosecute this type of crime are still complicated due to the difficulty of tracking transactions in the digital environment, where criminals can act anonymously and from anywhere in the world.

2.3. Cryptoassets and Financial Crimes

The rise of cryptocurrencies, such as Bitcoin, has brought not only opportunities for economic innovation, but also new challenges for criminal law. Cryptocurrencies are decentralized digital currencies that allow financial transactions without intermediaries and with a high level of anonymity, which has attracted criminals interested in illicit activities such as money laundering, fraud, and terrorist financing.

Regulatory agencies, such as the Central Bank of Brazil and the Securities and Exchange Commission (CVM), are closely monitoring the use of crypto assets and developing rules to regulate this market. However, despite the enactment of the Crypto Assets Legal Framework (Law No. 14.478/2022), there is still a loophole in the legislation that allows many criminals to continue exploiting the vulnerabilities of this technology.

3. The Growth of Artificial Intelligence and Its Legal Challenges

Another innovation that has had an impact on the legal world and digital crimes is the development of Artificial Intelligence (AI). AI has been widely used to increase the efficiency of services, improve data analysis, and optimize processes in various industries. However, its use has also generated new forms of cybercrime.

One of the most serious concerns related to AI is the use of deepfakes, which are videos or audios falsified using artificial intelligence. With deepfake technology, criminals can create videos that simulate real people, manipulating their images and voices to deceive the public or commit crimes such as fraud, defamation, or extortion.

Another concern relates to the manipulation of information, images, and even audio files, such as the creation of pornography, including the use of images of children and adolescents.

The great challenge for law is regulating the use of technologies that, while legitimately usable, have great potential for harm and abuse. The Brazilian Internet Bill of Rights (Marco Civil da Internet) and the General Data Protection Law (LGPD) already establish some guidelines on data protection and liability for the dissemination of false information, but regulatory gaps still exist regarding the use of AI for illicit purposes.

3.1. Legal Responsibility for the Actions of Algorithms

Beyond crimes directly related to the use of AI, discussions arise regarding legal liability in situations where autonomous algorithms cause harm. With the increasing automation of processes, companies and AI developers may be held liable for decisions made by automated systems that result in harm to third parties.

One example is autonomous cars, which use AI to operate without human intervention. In the event of accidents, how would responsibility be determined—would it be the vehicle owner, the programmer, or the AI ​​manufacturer? This type of question is still recent and lacks specific regulation under Brazilian law.

4. Challenges for Regulating the Digital World

The rapid evolution of technology has placed the law in a position of constant adaptation, in an attempt to keep up with new digital realities. However, there are many challenges to be faced in order to guarantee the protection of rights and the adequate punishment of crimes in the virtual environment.

4.1. Accelerated Technological Evolution

The speed at which new technologies are developed often outpaces the capacity of the legal system to regulate them adequately, since the creation of norms and the establishment of regulatory and supervisory procedures is a bureaucratic process that requires time to mature. 

Laws that were effective a few years ago quickly become obsolete in the face of digital innovations. Therefore, there is a constant need for legislative updates, which implies continuous efforts by legislators to keep up with this evolution and a process of reflection on how the digital world can be regulated through norms that can endure for a longer period of time.

Cybercrimes often involve different jurisdictions, as the internet allows criminals to operate in one country while their victims are in another. This creates complexity for international legal cooperation, as well as raising questions about the applicability of one country's laws to acts committed in another territory.

Another challenge faced by the justice system is the lack of specialization in cybercrime. There is still a shortage of professionals trained to handle the investigation and prosecution of digital crimes, especially in areas involving advanced technologies such as AI and crypto-assets.

Conclusion

The digital age has brought with it a series of technological innovations that have revolutionized society, but it has also opened doors to new types of crimes that the law needs to address. These crimes range from traditional cybercrimes, such as hacking and electronic fraud, to more complex issues involving crypto-assets and artificial intelligence; the law finds itself challenged to adapt rapidly to regulate this new environment.

Advances in legislation, such as the Brazilian Civil Rights Framework for the Internet, the Cryptoassets Legal Framework, and the General Data Protection Law, represent important steps, but much remains to be done to guarantee security and legal protection in the digital world. The law must evolve alongside technology, keeping up-to-date, creating solutions for the development of lasting norms, and promoting international cooperation and the specialization of professionals to effectively address these challenges.

Continue studying this topic with our ebook on Constitutionalism in the Digital Age and Cyberspace.

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