An analysis conducted by the Indian Cyber Crime Coordination Centre (I4C) has revealed that Aadhaar Enabled Payment System (AePS) frauds accounted for 11% of cyber financial scams originating in India in 2023. These findings shed light on the challenges faced by the Aadhaar-based payment service, particularly concerning biometric cloning, and indicate a need for enhanced security measures.
Last year, the central government’s cybercrime portal (cybercrime.gov.in) and the 1930 helpline received a staggering 13,10,329 complaints related to cyber-enabled financial frauds. AePS frauds, which involve the unauthorized use of Aadhaar biometrics, were notably prevalent in the states of Bihar and Jharkhand.
AePS, a payment service enabling basic banking transactions using Aadhaar identity, has become a target for cybercriminals. The cloning of biometrics, as reported by The Hindu on October 31, exemplifies the gravity of the issue. Criminals, in this case, exploited the Karnataka government’s Kaveri portal to access fingerprints from sale deeds, subsequently using them in AePS-enabled devices to withdraw funds from Aadhaar-linked bank accounts.
It’s important to note that a complaint filed through the portal or helpline does not automatically translate into a First Information Report (FIR). However, the I4C’s helpline, under the Ministry of Home Affairs (MHA), aims to facilitate real-time complaint registration. The platform’s integration with banks and financial institutions enhances the chances of blocking fraudulent transactions if reported promptly.
An analysis of the National Cybercrime Reporting Portal (NCRP) reveals two categories of cyber financial frauds: local and international. Local frauds, constituting 35% of cases, involve issues like customer care number scams and remote access to individuals’ phones for unauthorized fund transfers. Sextortion cases make up 24%, while 22% are related to online booking, fake franchisees, QR codes, and 8% involve Android Mobile Malware.
On the international front, 38% of frauds are linked to investment scams and authorized push payments, 23% to illegal loan apps, 21% to illegal gaming/crypto scams, 11% to romance scams, and 7% are complaints related to ransomware and hacking.
In addition to these alarming statistics, 2023 witnessed 1,41,056 reported social media-related cybercrimes, emphasizing the need for comprehensive cybersecurity measures in the digital age.
