Aadhaar-Linked Biometric money laundering, a new way of cyber-fraud

Cloning the biometric information of individuals who have connected their Aadhaar number with their bank accounts is one of the newest techniques utilised by fraudsters. Aadhaar is a unique identification number issued by the Indian government that contains biometric and demographic data of the citizens. Fraudsters can circumvent more traditional security measures like OTPs, CVV numbers, and bank data and withdraw money from victims' accounts without their knowledge or approval by employing false silicon fingerprints and unauthorised biometric devices posing a severe risk to the confidentiality of personal and financial data. 

One such case was reported by Pushpendra Singh, a popular YouTuber, whose mother lost money from her account due to this scam. The bank did not send any alert messages to her phone, and she only discovered the fraud when she updated her passbook. This shows how sophisticated and stealthy this method is, and how vulnerable Aadhaar-linked accounts are to such attacks. It came to light that the hacker first stole the thumb and fingerprints from the registry record of a house in the name of the woman, and then used those biometrics to wipe out the entire bank account.

Users should take some preventative precautions to safeguard themselves against this type of fraud. Locking their biometric information on the official UIDAI website is one of them. By doing this, any unauthorised authentication using their iris or fingerprint scans will be prevented.

m-Aadhaar is the official Aadhaar app released by UIDAI to allow Aadhaar holders to carry their demographic data and photograph on their smartphones. Users can download the app from Google Play Store or Apple App Store. To use the app, they need to register their Aadhaar number and verify it with an OTP.

Here’s how to lock biometric data through mAadhaar app 

Step 1: Login to your mAadhaar app and open your profile in the app
Step 2: On the top right corner of the app, click on the three vertical dots and select the Biometric Settings option
Step 3: Unselect the Enable Biometric Locking option and click on the tick mark to complete the process
Step 4: An OTP will be sent and fed automatically in the app
Step 5: You will have to approve the process after which your biometrics will be unlocked temporarily for 10 minutes.

Biometrics will be locked automatically after 10 minutes. There is no provision to disable biometric lock through the mAadhaar app. In case users want to disable their biometric lock, they will have to visit UIDAI’s portal.

Once the biometric data is locked, the Aadhaar card holder will no longer be allowed to use the details for authentication.  In case anyone tries to use any authentication service using an Aadhaar card when the biometrics is locked, a specific error code 330 will indicate that the biometric details cannot be accessed.

Regularly reviewing their bank statements for any questionable transactions and reporting them to the bank as soon as they are discovered is another precaution. In order to receive notifications of any activity on their accounts, users need additionally enable transaction alerts on their phones or emails. In addition, users should actively adhere to the most recent security features and procedures given by UIDAI and the bank. Users may protect their Aadhaar information and prevent falling victim to cybercrime by being informed and alert.