Aadhaar Card Fraud: With the increasing trend of digital payments, the methods of fraud are also changing rapidly. Now, scammers don’t need an OTP or a PIN. Through the Aadhaar Enabled Payment System (AEPS), criminals are directly targeting bank accounts. This fraud is particularly dangerous because the account holder remains unaware until the money is withdrawn from the account. In many cases, the victim’s account is later converted into a mule account.
Read More- Using an Inactive PAN Card Can Have Serious Consequences, Here How to Check its Status Immediately
How does the AEPS system work?
AEPS is a payment system that provides banking services through an Aadhaar number and biometric identification. It offers facilities like cash withdrawal, balance check, and fund transfer through micro-ATMs. This system is quite useful in rural and remote areas, but this very convenience has now become a weak link for scammers.
How is AEPS fraud carried out?
AEPS fraud begins with the theft of sensitive information linked to Aadhaar. Scammers often obtain fingerprints and Aadhaar details through leaked data, fake Aadhaar update centers, or unauthorized biometric devices. Then, fake fingerprints are created using this information. Using this fake biometric data at a micro-ATM, scammers can withdraw the entire amount from the account without any alert or OTP.
What is a mule account, and how is it related to AEPS?
Mule accounts are bank accounts used for illegal transactions. Sometimes, the account holder, unknowingly or out of greed, allows someone else to use their account. In many cases, the account is already hacked or compromised. In AEPS fraud, such accounts are used to transfer money, making it difficult to trace the real culprit.
How can GPS-enabled devices prevent fraud?
Technology-based solutions are now emerging to prevent fraud. According to experts, GPS-enabled micro-ATM devices can be effective in curbing this type of fraud. These devices allow transactions only within a designated service area. If a payment request originates outside the registered area, it is automatically canceled. This directly impacts the activities of scammers.
How Banks and NPCI Benefit
GPS data can also be used to identify areas where AEPS fraud is more prevalent. Once these fraud hotspots are identified, additional security measures can be implemented. This not only enhances customer security but also reduces risks for banks and NPCI.
How AI Will Change the Landscape in the Future
In the future, artificial intelligence can be integrated into these devices. Technologies like biometric liveness checks will ensure that the fingerprint being used is genuine. This will significantly reduce fraud committed through fake biometrics. It is important to note that these devices verify the location of the machine, not the user.
Read More- Samsung Galaxy S24 Ultra- Get 26,000 instant Discount with 200MP Camera
How the Public Can Protect Themselves from AEPS Fraud
The biggest key to preventing AEPS fraud is vigilance. Protecting Aadhaar-related information is crucial. Locking your biometrics on the UIDAI website is an effective step. Avoid getting your Aadhaar updated at unauthorized or suspicious centers. Giving your Aadhaar card or sharing a copy with an unknown person can be risky. Share a copy of your Aadhaar only when necessary and make it a habit to have it deleted once the task is complete.
