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Aadhaar-Enabled Payment System

News: Cybercriminals have recently taken advantage of India’s Aadhaar-enabled Payment System (AePS), allowing unauthorised access to consumers’ bank accounts.

Leaked biometric information has been used by scammers to avoid One Time Passwords (OTPs) and steal money from gullible victims.

The AePS’s weaknesses have recently come to light, as have the ways in which hackers are taking advantage of the system’s flaws to deceive innocent consumers.

Aadhaar authentication is used in the AePS, a bank-led platform that enables online interoperable financial transactions at Point of Sale (PoS) or micro-ATMs through the Business Correspondent (BC) of any bank.

It was adopted by the National Payments Corporation of India (NPCI), a joint project of the Indian Banks’ Association (IBA) and the Reserve Bank of India (RBI).

The AePS is designed to give the underprivileged and excluded members of society, especially those who live in rural and distant areas, simple and secure access to banking services.

OTPs, bank account information, and other financial details are no longer required.

Only the bank name, Aadhaar number, and fingerprint that was taken during Aadhaar enrollment are required for transactions.