Aadhaar-enabled Payment System

• Context (TH): In 2023, Aadhaar-enabled Payment System (AePS) frauds accounted for 11% of cyber-financial frauds originating in India, as per the Indian Cybercrime Coordination Centre (I4C).
• The central government’s cybercrime portal (cybercrime.gov.in) and the 1930 helpline received 1,310,329 complaints about cyber-related financial frauds. This included AePS frauds where biometrics were cloned.
• The scams involve cloning people’s Aadhaar-linked biometrics. This is done by using silicon fingerprints and unauthorised biometric devices.

What is AePS?

• AePS, or Aadhaar-enabled Payment System, is a financial service in India that allows customers to carry out banking transactions using only the bank name, Aadhaar number, and fingerprint.
• It eliminates the requirement for OTPs and the necessity to input bank account information and other financial details.

Types of Services Available under AEPS

Issues related to Aadhaar in India

• Privacy Issues: Concerns about the potential misuse of Aadhaar data. For example, leak in biometric information.
• Authentication Errors: leading to the exclusion of individuals from essential services.
• Centralisation of personal data makes it a potential target for cyber-attacks.
• Excessive Government Surveillance: Due to the extensive use of Aadhaar in public and private transactions.
• Concerns about the involvement of foreign entities in Aadhaar-related projects and potential risks associated with international data sharing.

Indian Cybercrime Coordination Centre (I4C) It is a specialized agency established by the Government of India to combat and coordinate efforts against cybercrime. I4C operates under the Ministry of Home Affairs (MHA) in India. I4C manages the National Cybercrime Reporting Portal (cybercrime.gov.in), which serves as an online platform for individuals to report cybercrimes. It has seven components: National Cyber Crime Threat Analytics Unit National Cyber Crime Reporting Portal National Cyber Crime Training Centre Cyber Crime Ecosystem Management Unit National Cyber Crime Research and Innovation Centre National Cyber Crime Forensic Laboratory Ecosystem Platform for Joint Cyber Crime Investigation Team.