In recent years, India has witnessed an unprecedented transformation in its financial services sector. The widespread adoption of smartphones and various government initiatives such as Digital India have accelerated the

CS Professional · Artificial Intelligence, Data Analytics and Cyber Security - Laws and Practice · PYQS · June 2026
In recent years, India has witnessed an unprecedented transformation in its financial services sector. The widespread adoption of smartphones and various government initiatives such as Digital India have accelerated the shift toward digital payments and online financial services. One of the key organizations at the center of this transformation in PaySure FinTech Solutions Pvt. Ltd., a rapidly growing financial technology company headquartered in Bengaluru. PaySure specializes in providing digital payment infrastructure for banks, e-commerce platforms and small businesses across India. Its services include real-time payment processing, fraud detection analytics, cross-border remittance platforms and blockchain-based smart contract systems for automated financial settlements. The company processes millions of financial transactions every day through mobile wallets, digital banking APIs and merchant payment gateways. Because it handles large volumes of sensitive financial data—including customer identities, transaction histories, biometric authentication records and merchant settlement information—PaySure plays a critical role in India's digital financial ecosystem. However, as digital transactions increased dramatically, so did the complexity of cybersecurity threats facing the organization. Cybercriminal networks began targeting payment systems with increasingly sophisticated attacks, including phishing campaigns, malware-based account takeovers, distributed denial-of-service attacks and automated fraud schemes. To address these threats, PaySure's Chief Technology Officer proposed the integration of Artificial Intelligence (AI) based fraud detection systems combined with blockchain technology to create a more transparent and secure payment infrastructure. The idea was to use AI algorithms to detect suspicious transaction patterns while using blockchain's distributed ledger to ensure tamper-resistant transaction records. At the same time, the company deployed a machine learning fraud detection system designed to analyze massive datasets of financial transactions. The system monitored behavioural patterns such as transaction timing, device usage, geographic locations and spending patterns to identify potential fraud attempts. The company's legal advisors reminded management that although blockchain systems can automate financial processes, organizations must still comply with existing regulatory frameworks such as the Information Technology Act, 2000 and financial guidelines issued by the Reserve Bank of India. Under the IT Act, unauthorized access to computer systems and data manipulation are criminal offenses. In addition, organizations handling digital financial information must implement reasonable security practices to protect customer data. The company also needed to comply with provisions of the Digital Personal Data Protection Act, 2023, which imposes strict requirements regarding the collection, processing and storage of personal data. While the legal and compliance teams were still analyzing the implications of blockchain technology, PaySure faced another major security incident. The company's cybersecurity monitoring system detected unusual traffic patterns originating from one of its internal analytics servers. Investigators discovered that an employee from the data science team had accessed confidential datasets containing millions of anonymized transaction records used to train the AI fraud detection system. During the investigation, analysts discovered that the suspect had attempted to delete several log files and temporary records to conceal the unauthorized data transfer. However, forensic experts were able to recover fragments of the deleted files using specialized digital forensic software tools. Despite recovering the data, investigators encountered serious procedural challenges. Some of the evidence had been collected after the suspect's computer had already been shut down, which resulted in the loss of volatile memory data such as encryption keys and active process information. Furthermore, the company's legal department raised concerns regarding the chain of custody documentation associated with the digital evidence. In Indian courts, electronic evidence must comply with strict legal standards under Section 65B of the Indian Evidence Act, which requires proper certification regarding how electronic records were collected and preserved. Some customers also expressed concerns about how their financial data was being used to train AI models. Even though the data used by PaySure had been anonymized, critics argued that large-scale data analytics could still pose risks to individual privacy. The company's Board of Directors realized that adopting emerging technologies like AI and blockchain required not only technical expertise but also a robust governance framework capable of addressing legal, ethical and cybersecurity challenges. To address these concerns, PaySure established a Technology Governance and Ethics Committee responsible for overseeing AI development, data protection policies, vendor contracts and cybersecurity risk management. The PaySure case illustrates the complex challenges faced by organizations operating at the intersection of financial technology, artificial intelligence, blockchain innovation and cybersecurity governance. While advanced technologies can significantly improve operational efficiency and fraud detection capabilities, they also introduce new risks involving data privacy, legal compliance, cybercrime investigations and public trust. In view of the above, answer the following: As the analysts of PaySure FinTech Solutions Pvt. Ltd. discovered that anyone attempted to delete several log files and temporary records to conceal the unauthorized data transfer. What are the various ways to recover deleted temp files?

Answer & Explanation:

Any manual way to recover deleted Temp files, then if these are deleted using the simple delete process, the recovery is possible by restoring files through the Recycle Bin. But if it is cleared from the Recycle Bin or Shift+Del action is taken to delete the Temp files, the manual recovery of files using native Windows features is not possible. From a digital forensics' perspective, the data content still resides in the drive's unallocated clusters until overwritten. To mitigate the risk of permanent data loss, it is highly recommended to implement the proactive measures detailed below. Create regular backups of Windows drive, creating a fresh restore point on its storage Never save the backup of the Temp files on the same drive/folder Avoid using a corrupted hard drive on which the files are lost Select a reliable, professional Windows Data Recovery tool for Temp file recovery Deploy Digital Forensic Experts to inspect the storage sectors of the machine. Forensic experts can bypass the broken operating system paths and use professional data recovery utilities to trace and reconstruct the deleted temporary log fragments. Utilize System Restore Points and Shadow Copies or automated volume shadow snapshots.

Topics: Cyber Security

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