Preventing and Reporting Aadhaar-Enabled Payment System (AePS) Fraud

Key Takeaways:

1. Lock Biometrics:

Use the m-Aadhaar app or Unique Identification Authority of India (UIDAI) website to lock biometrics to prevent misuse of Aadhaar card data.

2. Contact Bank’s Hotline:

Report fraudulent transactions by contacting the bank’s hotline number and providing details of the fraudulent transaction.

3. Block Account:

Request the bank to temporarily block the account to prevent unauthorized transactions and change PINs and passwords associated with the accounts immediately.

4. Notify Authorities:

Report the fraud incident to the bank, file a police complaint, report the incident to the National Cyber Crime Reporting Portal, and inform UIDAI. Victims also have 90 days to raise chargeback (reversal) on the transaction.

5. Transaction Limits:

Be aware of per-day and amount-specific limits for AePS transactions and immediately block the bank account for transactions if fraud is suspected.

6. Banks’ Risk Monitoring:

Banks have deployed monitoring tools to track anomalous transactions, report unauthorized transactions to the National Payment Corporation of India (NPCI), and use various monitoring rules to detect suspicious activities.

The Aadhaar-enabled payment system (AePS) has introduced a new way of conducting transactions using just an Aadhaar number, fingerprint/IRIS for authentication, and the name of the bank where the account is opened. However, this system is susceptible to fraud if a fraudster gains access to the bank customer’s fingerprint/IRIS impression/data, their Aadhaar number, and the name of the bank where the account is maintained. To protect individuals from such fraud, certain steps need to be taken, and banks also play a crucial role in preventing and addressing AePS fraud.

Steps to Protect Against Aadhaar enabled Payment System (AePS) Fraud

1. Lock Biometric: 

To prevent misuse of Aadhaar data, individuals should lock their biometrics using the m-Aadhaar app or the Unique Identification Authority of India (UIDAI) website.

2. Contact Bank’s Hotline:

In case of fraudulent transactions, individuals should contact the bank’s hotline number to report the incident and provide details about the fraudulent transaction.

3. Block Account:

Individuals can request their bank to temporarily block their account to prevent unauthorized transactions if they suspect any ongoing misuse or fraud. They should also change their PIN, internet banking password, and any other relevant passwords associated with their accounts immediately.

4.Notify Authorities:

Victims of AePS unauthorized transactions should report the fraud incident to their bank, file a police complaint, report the incident to the National Cyber Crime Reporting Portal, and apprise the Unique Identification Authority of India (UIDAI) of the fraud incident. They also have 90 days to raise a chargeback (reversal) on the transaction.

How Banks Protect Against AePS Fraud

Banks have implemented various measures to protect customers from fraudulent transactions in the Aadhaar-enabled payment system. These measures include:

1. Risk Monitoring Cell:

Banks have deployed monitoring tools to track anomalous transactions in customer accounts. They have defined and configured various monitoring rules and continuously monitor the generated alerts.

2. Reporting to NPCI:

Banks report the details of unauthorized transactions to the National Payment Corporation of India (NPCI) for further action.

3. Geographical Location Monitoring:

Banks monitor the geographical locations of transactions and may trigger an alert if a transaction occurs in a significantly different location from the customer’s usual transaction history.



4. Transaction Frequency and Patterns Analysis:

Banks analyze the frequency and patterns of transactions to identify unusual or unexpected activities that could trigger alerts.

5. Behavioral Analysis:

Some banks use behavioral analysis to establish a baseline of their customer’s typical behavior and identify deviations from this baseline, which could raise suspicions.

These measures help banks to detect and prevent fraudulent transactions in the Aadhaar-enabled payment system, thereby protecting customers’ money from scammers.

FAQ

Q1: How do banks protect your money from frauds?

A1: Banks protect customers’ money from frauds through various methods, including risk monitoring tools, geographical location monitoring, transaction frequency and pattern analysis, and behavioral analysis. These tools help in detecting and preventing suspicious or fraudulent transactions.